Record Revenue and Margins in Company’s First Consolidated Reporting Period

Bitzio, Inc. (OTCQB: BTZO), a fashion company operating under the name Democratique, today announced financial results for the third quarter ended September 30, 2014. The following are highlights from the Company’s recently filed 10Q:

• Q3 Revenue of $208,000, up 20x over prior year’s quarter
• Strong gross margin of $159,000, or 76% of revenues
• $345,000 in current assets to support quarterly growth

Total revenue for the third quarter ended September 30, 2014 increased to approximately $208,000, compared to approximately $10,000 in the prior year quarter. Gross margin for the third quarter increased to approximately $159,000, versus 0 in the prior year quarter. The increase in revenues and gross margin are attributable to completion of the acquisitions of Lexi Luu Designs Inc. (www.lexiluu.com) and E-Motion Apparel Inc. (www.emotionapparelinc.com), both of which were completed in mid-July 2014. The results presented only include the timeframe from the purchase of each of these entities through September 30, 2014. Net income attributable to Bitzio for the quarter was approximately $37,000, which reflects a one-time gain on a derivative liability approximately $440,000.

“Our third quarter financial results reflect the first time in our history that we are able to report the consolidated fundamentals of our active brands under our new business model,” commented Hubert Blanchette, Chief Executive Officer of Bitzio. “We are particularly excited about the margins we are able to generate, and when compared to our relatively low operating costs, are in a strong position to achieve cash flow positive status with only a small amount of organic growth. Our balance sheet reflects over $345,000 in current assets, most of which constitutes inventory that we have purchased to fulfill future sales. We are pleased with our ability to stabilize our operations given our limited financial resources, and continue to develop strategies to maximize our business quarter over quarter for the benefit of all stakeholders.”

Marilu Brassington, Chief Financial Officer of Bitzio, commented, “We expect to continue to see strength in the fourth quarter, and are working aggressively on building upon our foundation so that we may grow not only organically, but through strategic acquisitions. On the capital front, we have continued to finance our operations through convertible debentures, and are actively seeking alternative strategies to minimize the dilutive impact to our stakeholders, including ourselves as founders who contributed assets to the Company in return for common shares. We expect to communicate to our investors on a more regular basis.”

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The terms and phrases "expects," "would," "will," "believes," and similar terms and phrases are intended to identify these forward-looking statements. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Copies of filings can be obtained at www.sec.gov. These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Bitzio Inc.Hubert Blanchette, 213-489-1377infobitzio@gmail.com