Represents the Company’s initial order in the emerging and fast-growing electric school bus market

Phoenix Motor Inc. (Nasdaq: PEV) (“Company” or “Phoenix”), a leader in manufacturing of all-electric, medium-duty vehicles, today announced a contract order for ten all electric, zero-emission Type-A school buses to be deployed from the Office of the State Superintendent of Education (OSSE). The contract was executed this summer and calls for the deployment of ten Phoenix school buses in the District of Columbia during 2024. The Phoenix Type-A School Buses will be built on Ford E-450 chassis powered by Phoenix’s 150-mile range battery electric drive system and a Pegasus Orion school bus body.

“This is a vital first step to improving our carbon footprint and improving air quality in and around our schools and communities,” said State Superintendent Dr. Christina Grant. “The new electric buses will support our efforts to operate a cleaner and greener bus fleet in our community. We are grateful to Phoenix Motorcars and Pegasus Specialty Vehicles for their partnership in helping to better protect the health of children across the District."

The Phoenix vehicles can be fully charged in less than two hours with a 100-kW Level III charger. The school buses, compared to their equivalent fossil fueled alternatives, can reduce atmospheric emissions by approximately 79 tons per vehicle annually, reduce maintenance costs by around 75% and lower fuel costs by approximately 80%.

“Phoenix is proud to be entering the electric school bus market. With this order, The District of Columbia is taking great steps to electrify its school bus fleet and cleaning the air quality near its students and in its communities,” Phoenix’s CEO Denton Peng said. “Our goal is to pave the way for the electrification of Type-A School Buses across America, and this project is a milestone for Phoenix Motorcars and our efforts to bring our leading electric drive system to every school district. We are committed to being the leader in zero emission Type-A School Buses and are excited to be partnered with Pegasus Specialty Vehicles.”

Phoenix has been the leader in medium-duty electrification for over a decade. With nearly 5 million all-electric miles driven on its zero-emission drive systems, Phoenix has extensive experience and expertise helping public and private fleets successfully deploy and adopt electric vehicles into their fleets, enhancing the air quality and providing clean, quiet and safe zero-emission transportation and mobility for their companies and communities.

“We couldn’t be happier to be able to partner with Phoenix Motorcars on this initial order for 10 Type-A school buses with Phoenix for the DC Schools,” said Pegasus President Brian Barrington. “We feel that utilizing our Orion body with the durable Phoenix EV drive system will be a great combination!”

About OSSE

The Office of the State Superintendent of Education (OSSE) is the state education agency for the District of Columbia charged with raising the quality of education for all DC residents. OSSE serves as the District’s liaison to the US Department of Education and works closely with the District’s traditional and public charter schools to achieve its key functions, including: Overseeing all federal education programs and related grants administered in the District of Columbia; Developing state-level standards aligned with school, college, and workforce readiness expectations; Ensuring access to high-quality child care and universal pre-kindergarten for eligible District families; Providing resources and support to assist the District’s most vulnerable student populations; Administering the annual statewide student academic achievement exam; Providing regional, door-to-door transportation to school for District children with special needs; Awarding higher education financial assistance to eligible District students at public and private colleges and universities in DC and across the country; Increasing health and physical education awareness as well as ensuring access to free meals year-round; and many other functions. Visit osse.dc.gov to learn more.

About Phoenix Motor Inc.

Phoenix Motor Inc., a pioneer in the electric vehicle (“EV”) industry, designs, builds, and integrates electric drive systems and light and medium duty EVs and sells electric forklifts and electric vehicle chargers for the commercial and residential markets. Phoenix operates two primary brands, “Phoenix Motorcars”, which is focused on commercial products including medium duty EVs (shuttle buses, school buses, municipal transit vehicles and delivery trucks, among others), electric vehicle chargers and electric forklifts, and “EdisonFuture”, which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. For more information, please visit: www.phoenixmotorcars.com.

About Pegasus Specialty Vehicles

Pegasus Specialty Vehicles is spearheaded by industry-proven leadership, experienced as reputable expert innovators in the school transportation and manufacturing industries. Its management team brings a culture of creativity, flexibility, effectiveness, efficiency and teamwork to producing competitively priced modern school and shuttle buses that address market needs that have been ignored by existing bus manufacturers. Located in West Central Ohio, Pegasus is positioned to service the entire U.S. and Canada from one location. The company provides buses for both the school and transit bus industries. Pegasus Bus leadership is well recognized by bus dealers, school bus contractors, school district transportation operators, and decision-makers who have expressed dissatisfaction with current products that do not provide the features these buyers need and want. Learn more at www.ridepegasus.net

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as “may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 20-F filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.

Investor Relations:

Mark Hastings, Senior Vice President of Corporate Development & Strategy/Head of Investor Relations

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