Leo Motors (PINK:LEOM)

LAS VEGAS, NV--(Marketwire - Jan 5, 2012) - Leo Motors, Inc. (OTCQB: LEOM) signed a contract with PDI Global LLC (http://www.pdidg.com/) to supply 20,000 units of e-Box, Leo's Electric Energy Storage in Social Housing in the Republic of the Congo through PDI. PDI is involved in the Social Housing project in Congo for 300,000 homes, and plans to provide electric energy storage to as many of them as possible, using solar generators in the project to help solve the electricity problems, and to promote the green energy policy.

Social Houses use an independent electricity supply system whereby electricity is generated from solar or wind generators which store the electricity in high density energy storage units like Leo's e-Box for reuse.

According to Mr. John Lee, CEO of Leo Motors, "With this agreement, Leo will supply 20,000 units of e-Box per annum (sales goal), and this will generate sales of $100 million. We upgraded our existing e-Box for safer and higher power storage."

The following news was released late i January 6, 2012 trading session.

As previously announced, Leo Motors, Inc. (the "Company") entered into a agreement to provide 20,000 E-Box's to a USA based company which can now be identified as PDI Global LLC (http://www.pdidg.com). The 20,000 e-Box devices will be used by PDI in Social Housing in the Republic of the Congo. The contract with PDI will generate sales of $100 million per annum based on 20,000 e-Box energy storage units according to John Lee, President and CEO of the Company.

Further the Company announced today that it had entered into a $25 million contract to supply 5,000 e-Box devices to Hanwha Corporation (http://www.hanwhacorp.co.kr). Hanwha was appointed exclusive distributor of the e-Box in Europe.The contract with Hanwha is guaranteed at a minimum of 5,000 units of the e-Box.

Leo Motors, Inc. (Pink OTC Markets: LEOM) announced today that Sea Motors Group LLC has agreed to return and cancel 2,000,000 shares of common stock previously issued to them, due to Sea Motors being unable to perform on its distribution agreement with Leo. Dr. Robert Kang, stated, "I believe Leo will make substantial growth in 2011, as we continue to develop our relationships with various international companies and governments. It is unfortunate that our relationship with Sea Motors was unsuccessful, but I am very optimistic about our prospects looking forward with new partners."

Separately,  Dr.  Kang  has  also  agreed to cancel stock options to purchase 10
million  shares,  given  to  him  for  his  role as CEO.  Dr. Kang added, "It is
important  to me that we continue to build shareholder value.  Until Leo reaches
its  immense  potential,  I believe it to be in the shareholders' best interests
for  me  to  forego  these  options."

With  the  cancellation  of  the shares, Leo now has 48,833,115 shares of common
stock  outstanding,  a  reduction  of  4%  of  the  outstanding  shares.  The
cancellation  of  the  options reduces Leo's fully diluted share count by 19.7%.