Salt, June 26, 2019

Dear partner,
After some noise published by different digital media in Spain, TORROT / GASGAS would like to clarify some aspects about the current situation of the company.

Recently, TORROT / GASGAS has designed a feasibility and continuity plan based on cost-containment measures that implies an annual saving of 45%, the optimization and improvement of processes and industrial margins and the issue of a Temporary Employment Regulation Process, which affects the workforce of all group companies: Torrot Electric Europa SA, GasGas Motorcycles SLU and Velocípedo Torrot S.L.U. for a period of three to six months.

These measures aim to encourage more flexible cost structures in order to ensure the continuity of the three companies. By no means, the Management Board has planned to cease production, which continues normal operations according to production planning, nor the closure of the factory of Girona.

In this line of work, the company is negotiating with the Company Labour Committee to agree the range of the Temporary Employment Regulation Process. The evolution of these negotiations will limit the final scope of the process that will always adapt to the needs of production.
At the same time, the Board is engaged in talks with several parties to assure the necessary liquidity of the companies to stabilize cash flow, the production operations plan and the evolution and development of the product catalog.

We keep focused on commercial and after-sales operations in order to meet deliveries of pending orders of the MUVI model to several European Moto-Sharing operators and the launch of the new trial and enduro GASGAS 2020 models. The after-sales service and the supply of spare parts will maintain operations as usual.

I would like to end this letter by thanking you for the support always received by you.

Sincerely,
Jordi Arilla Arts
Managing Director