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Envision Solar Announces Second Quarter 2016 Results

SAN DIEGO, CALIF. — (Aug. 18, 2016) – Envision Solar International, Inc., (OTCQB: EVSI) (“Envision Solar,” or the “Company”), a leading renewable energy, media and branding and EV charging product company, filed operating results for the three and six months ending June 30, 2016.

“We executed on our plan during the first half of 2016,” said Desmond Wheatley, CEO of Envision Solar. “Key takeaways are that we are no longer deriving revenues from installation projects, thus avoiding the risk of gross margin loss in the field and setting ourselves up for the growth that I see coming. Crucially, we demonstrated again that we can produce our EV ARC products profitably at the gross margin line, even in lower volumes. With scale, those gross margins should only increase and our historically high backlog, growing sales team and market demand tells me that we are going to achieve that scale.”

Revenues for the six months ending June 30 were $684,814, compared to $699,873 for the same period in 2015. The majority of revenues in 2016 were from our growing sales of EV ARC™ products, compared to a mix of Solar Tree® installation services and EV ARC™ products in 2015. This shift is consistent with our strategy to complete our transition to product sales and away from services, which we now regard as essentially complete with our growing EV ARC™ sales and Solar Tree® products being sold as a kit of parts.

We ended the second quarter with approximately $500,000 in backlog and we have subsequently received several Solar Tree® kit and EV ARC™ product orders, including the largest single government order of EV ARC™ products to date. This has resulted in having backlog, which is historically high and significantly greater than at the same time in 2015. We believe that we will convert that backlog to revenue in 2016.

While we recorded a first-half gross loss of $75,100 compared to $73,367 at the same time in 2015, the losses were primarily due to one-time items such as repairs to production equipment and transportation costs for our first Transformer ARC™ product to the Caribbean. Importantly, we did generate positive direct gross profit on sales of our EV ARC™ products in the period. In 2015, our losses were primarily associated with cost overruns on Solar Tree® structure installations. We view the generation of direct gross profit on EV ARC™ products and the lack of installation related losses to be more indicative of our future potential than the one time losses attributed to equipment repairs and transportation. Again, this is consistent with our strategic plan and contributes further to our belief in the Company’s potential.

Operating expenses increased by approximately $190,000 in the first half of 2016 when compared to 2015 with approximately $70,000 of that increase due to increased labor. Our labor increase was predominantly driven by the addition of salespeople consistent with our plan to increase focus on sales and marketing now that we have demonstrated that we can produce our products with gross profits.

We continue to improve our efficiencies and reduce costs on the production of our products. We believe that the market drivers behind electric vehicles, outdoor advertising and energy security continue to be very strong and as such we continue to believe that our strategy of producing patented, solar powered products to serve those markets is the right strategy for the Company to pursue.

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About Envision Solar International, Inc.

Envision Solar designs, manufactures and deploys unique, renewably energized, EV charging and media and branding systems. The Company’s products include the patented EV ARC™ and Solar Tree® product lines. All of the Company’s products can be enhanced with EnvisionTrak™ patented solar tracking, ARC Technology™ energy storage, SunCharge™ Electric Vehicle Charging Stations and digital advertising packages.

Based in San Diego, the company integrates the highest quality components into its Made in America products. Envision Solar is listed on the OTC Bulletin Board under the symbol [EVSI]. For more information, visit www.envisionsolar.com or call 866-746-0514.

Forward-Looking Statements

This Press Release may contain forward-looking statements regarding future events or our expected future results that are subject to inherent risks and uncertainties. All statements in this Report other than statements of historical facts are forward-looking statements. Forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may,” or other words and similar expressions that convey the uncertainty of future events or results. Statements contemplating or making assumptions regarding actual or potential sales, market size and demand, prospective business contracts, customer orders, trends or operating results also constitute forward-looking statements. Our actual results may differ substantially from those indicated in forward-looking statements because our business is subject to significant economic, competitive, regulatory, business and industry risks which are difficult to predict and many of which are beyond our control. Our operating results, financial condition and business performance may be adversely affected by a general decline in the economy, unavailability of capital or financing for our prospective customers to purchase products and services from us, competition, changes in regulations, a decline in the demand for solar energy, a lack of profitability, a decline in our stock price, and other risks. We may not have adequate capital, financing or cash flow to sustain our business or implement our business plans. Current results and trends are not necessarily indicative of future results that we may achieve.