Ideanomics' MEG Division Provides Market Update: Launches Innovative Financing Program for EV Fleet Operators to Fulfill Sales Orders

- Until now,EV market in China lacked financing infrastructure for fleet sales. MEG solves this with new,innovative,financing programs for fleet operators including umbrella financing

- MEG has sourced major fleet sales contracts,with additional orders pending,and requires robust and flexible financing programs to support these large-scale orders

- Financing programs include battery manufacturer's buyback program to increase the percentage of financing available for both batteries and finished vehicles

- Utility-based funds,insurance companies,lease financing companies,and other financial institutions help round out full suite of financing products

- Focus on 4 vehicle types,with ROI for fleet operators: Heavy Commercial,Light Commercial Last-mile,Buses & Coaches,and Taxis

NEW YORK,Nov. 11,2019 --Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"),has today announced a general update of its MEG activities,as well as details of its innovation in the lease financing of EVs. The new financing programs will enable servicing of existing and pending sales orders,as well as help the commercial EV market counter the anticipated withdrawal of government subsidies for electric vehicles.

With the EV industry quickly evolving,the need for tailored financing for corporate fleet operators has become an area requiring innovation and development. Traditional lease financing products have not kept up with the pace of change,meaning they were no longer meeting the market demand. Leading EV battery makers are taking a leading position by implementing buyback programs which allow for financing of battery power packs at 100% of purchase price,marking a breakthrough in how EVs are financed.

EVs differ considerably from fossil fuel vehicles in that there is not yet a dependable residual value,due to the portability of the battery power pack. This has required a rethink in the lease financing space,with Ideanomics' MEG division helping to bring to market a next-generation of financing products for the benefit of fleet operators,to help them transition to EV and enjoy both reduced energy costs and reduced emissions versus diesel and gasoline-powered vehicles.

MEG also announced increased EV revenue activities for 2020,due to the implementation of the new financing products enabling a faster time to market for fleet customers. Ideanomics anticipates revenues for its MEG division in the $2B range for fiscal 2020,with operating margins in a 6% range,after costs for scaling operations. These revenues will be derived from the spread on group buying activities,as well as fees derived from lease financing and ABS refinancing activities.

"We anticipate finalizing the structuring of the new financing products in Q4 of this year,with roll-out in Q1 2020,and an expectation for these products to impact our revenue activities from Q2 2020 onwards. We will continue with our existing EV financing programs through Q4 2019,and Q1 2020,so that we can deliver on the orders already underway,such as the Taxi orders for Chengdu," said Alf Poor,CEO of Ideanomics. "The industry is evolving rapidly,and it was clear to us the financial products currently available were not correctly aligned with the EV industry. This required a re-think,based on the projected value of electric vehicles,and resulted in educating existing players in the lease financing industry that the battery is the primary future value asset in electric vehicles. The MEG management team,which has only been in place for the past 7 weeks or so,has been at the forefront of identifying the current shortcomings and talking with partners throughout the value chain to help adapt the financing products available. With help from the battery manufacturers,through an attractive buyback program,and participation from utilities and other partners with an interest in EV fleet financing,we have been able to tailor products more in tune with the needs of fleet operators. With our flexible financing programs,manufacturer alliance,and battery partners we will ensure that our fleet customers have the best models,the best pricing,and the best payment options available anywhere."

MEG has also announced a clear focus on its areas of activity in the commercial EV industry,which are four distinct commercial vehicles types with supporting income streams: 1) Closed-area heavy commercial,in areas such as Mining,Airports,and Sea Ports; 2) Last-mile delivery light commercial; 3) Buses and Coaches; 4) Taxis. MEG focuses on commercial EV rather than passenger EV,as commercial EV is on an accelerated adoption path when compared to consumer EV adoption – which is expected to take between ten to fifteen years. Additionally,commercial EV represents a vastly higher portion of energy consumption.

The company has previously announced,among other deals,500,000 commercial vehicle orders over 3 years which were acquired through its MEG stakeholder GCL. These order activities will form part of the those fulfilled under the new finance programs. MEG further anticipates its battery,sales,and financing activities to be the main revenue streams in 2020. Other activities,such as energy sales through pre-paid discount electricity purchasing and charging networks,will continue to develop in 2020. Currently,it sees significant innovation in the charging space which is improving the charging times when compared to existing charging apparatus. It is working with industry partners on the time to market,with indications suggesting early revenues commencing in the second half of 2020 and developing from that point forward.

Ideanomics will provide further updates on its MEG division,as well as its other activities,in the upcoming Q3 earnings call on Thursday,November 14,2019. A press release will be issued at approximately 8am ET,followed by a conference call at 8:30am (9:30pm Singapore Time).

CONFERENCE CALL INFORMATION

Webcast Link:At the Ideanomics (www.ideanomics.com) corporate website or here: Earnings Call Website Link

Dial-in Number:(Toll-Free US & Canada): 877-407-3107 or 201-493-6796; for China: +86-400-120-2840Ideanomics management encourages investors and analysts to email their questions in advance of the webcast/call and time permitting management will take further questions during the live Q&A session. Please emailir@ideanomics.com

A replay of the earning call will be available soon after the conclusion of the event.

About Ideanomics

Ideanomicsis a global Financial Technology (Fintech) company for transformative industries. Ideanomics combines deal origination and enablement with the application of technologies such as artificial intelligence,blockchain,and others as part of the next- generation of smart financial services. Our projects in New Energy Vehicle markets,Fintech,and advisory services provide our customers and partners better efficiencies,technologies,and access to global markets.

Ideanomics,through its investments,along with its partners curate innovation around the globe through hubs and centers that foster a pipeline of technological excellence in cleantech,fintech,tradetech,agritech,regtech,insuretech,playtech,healthtech,cyber security,and more.

The company is headquartered in New York,NY,and has offices in Beijing,China. It also has a planned global center for Technology and Innovation in West Hartford,CT,named Fintech Village.

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Email: ir@ideanomics.com

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