Vitaxel Group Launches a New Programme to Attract Membership Growth

Kuala Lumpur, Malaysia--(Newsfile Corp. - March 17, 2016) - Vitaxel Group Limited (OTCQB: VXEL) (the "Company" or "Vitaxel"), a multi-level marketing direct seller, with an emphasis on travel, entertainment and lifestyle products and services, through its wholly owned subsidiary, Vitaxel SDN BHD, launched a new Multi-Marketing Level ("MLM") programme on January 2, 2016 (details of which have been disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 22, 2016) covering most of Southeast Asia. The Company has organized events, gatherings, seminars and training to introduce the new programme to its members and customers. As of February 29, 2016, the Company had increased its member total to approximately 4,300.Such increase resulted in approximately US$124,000 in revenue generated from that period. Taking into account the two-week slowdown attributable to the Chinese Lunar New Year, the increase in member total was better than expected. The Company expects additional members to join the programme in the near term and that this will accelerate the Company's sales in the subsequent quarters.

The launch of the new programme has received significant attention from the Company's new and existing members. Additionally, due to the popularity of the new incentive programme, members have been signing up as Company sales consultants to achieve sales targets set by the Company. Successful sales consultants are expected to become shareholders of the Company through the grant of equity incentive awards.

Currently, more than 200 members have expressed interest in applying for sales consultant positions. The Company's original target was to engage 500 sales consultants over a 3-year period (approximately 167 sales consultants per year). The Company also aims to increase the membership base such that it will have approximately 15,000 members by year end 2016, approximately 45,000 members by year end 2017 and approximately 105,000 members by year end 2018.Based upon the Company having 15,000 members in 2016 (excluding public users, which are non-members but are able to purchase the Company's products online), including at least 1,000 team leaders joining the Company's MLM programme this year, the Company estimates that the sales consultants, team-leaders and the members can generate substantial revenue in 2016, although no assurance can be given that this will prove to be the case. The key growth engine for the Company is expected to be the incentive programme, as such programme motivates the team leaders to compete for sales consultant positions.

The team leaders and sales consultants will conduct training, home parties, private previews and provide services through word of mouth with the support of the Company. By motivating the team leaders and the sales consultants to move forward independently, with the Company's support, the Company's cost of marketing is greatly reduced. This is because the Company does not pay salaries, claims, retirement benefits or any other benefits apart from sales commissions. If the team leaders fail to generate expected revenues, their sales commissions will be greatly affected. Accordingly, the Company only picks the strongest candidates to become sales consultants. Once a person becomes a sales consultant, there are no changes for existing benefits or any additional benefits that he/she is going to enjoy (apart from the incentive programme which is one-off).

Based on the Direct Selling News ("DSN") survey for 2014, total revenue recorded for MLM businesses worldwide was approximately US$162 billion with the top performance MLMcompany showing revenue of US$10.8 billion. eMarketer estimated that the revenue generated from Business-to-consumer (B2C) ecommerce sales worldwide would reach approximately US$1.471 trillion in 2014 The Company believes that its main business model which emphasizes travel, entertainment and lifestyle products and services, combined with its equity incentive award initiatives for high achieving members, ecommerce (online and offline mall) and MLM is the first of its kind in Southeast Asia. The Company estimates that in 2017 and 2018 the Company will generate revenues which are substantially greater than 2016, although no assurance can be given that this will prove to be the case.

The introduction and implementation of the new programme was successfully executed. The Company has educated its customers and members by organizing events, house parties and weekly training. Information respecting the new programme and the incentive plans has spread quickly (this is mainly due to the Company using each country's MLM committee to spread the word). There was an increase of membership from January 1, 2016 to February 29, 2016 compared to membership as at December 31, 2015. Apart from Malaysia, in Singapore there was an increase of 8% (from 782 members to 845 members) and in Thailand there was an increase of 90% (from 11 members to 21 members). Due to this, the Company has incorporated two new subsidiaries. The Singapore subsidiary, Vitaxel Singapore Pte Ltd was incorporated on February 16, 2016 while the Thailand subsidiary, Vitaxel (Thailand) Co Ltd was incorporated on February 25, 2016. The Company is currently conducting events in other parts of Southeast Asia. If the membership contribution from members in other part of Southeast Asia continues to improve, the Company intends to incorporate more subsidiaries.

About Vitaxel Group Limited

Vitaxel Group Limited has two significant operating subsidiaries, Vitaxel SDN BHD (Vitaxel) and Vitaxel Online Mall SDN BHD (Vionmall). Vitaxel is engaged in the direct selling industry utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services. Vionmall is engaged in the development of online shopping platforms geared to Vitaxel and its members and third party providers of products and services.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic and other reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf areexpressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contacts:

Email: info@vitaxel.com
Phone: 03-2143 2889