Workhorse Group Purchases Existing Facility in Ohio

Intends to Expand Battery Pack Factory

CINCINNATI, Oct. 31, 2016 - Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or the "Company") announced today that the company has purchased its existing facility as well as adjoining space in Loveland, Ohio. With the additional space, Workhorse intends to expand its battery pack factory facilities currently in place at the existing facility.

Workhorse expects to begin increased battery cell production as early as the first quarter of 2017. With the new expanded facilities, lithium ion battery packs are expected to be produced for less cost. This will be due to a combination of reasons, including economies of scale, innovative manufacturing techniques, and the efficiencies of locating most of the battery manufacturing process under one roof.

"We expect that our expanded battery pack capabilities will provide a new level of quality control combined with a reduction in costs to produce battery packs," said Steve Burns, Workhorse CEO. "Fleets demand a very competitive Total Cost of Ownership and long-life efficiencies. Our goal is to drive down the battery costs per kilowatt hour while providing years of dependable operation."

About Workhorse Group Inc.

Workhorse Group Inc. is a U.S.-based original equipment manufacturer of medium-duty, EPA-approved battery-electric delivery vehicles and fully integrated truck-launched, FAA compliant unmanned aerial systems (UAS) delivery drones. The company is also a developer of a cloud-based, real-time telematics performance monitoring system that provides fleet operators ultimate energy and route efficiency.

For additional information visit www.workhorse.com.

SOURCE Workhorse Group Inc.

Contact:

Mike Dektas

­­­­­­Workhorse Group Inc.

513-266-3590

Web Site: http://www.workhorse.com