Bitzio (OTCBB: BTZO) DBA Democratique today issued the following letter to shareholders:

Dear Shareholders,

We wanted to take this opportunity to share the growth, progress, and plans of Bitzio Inc (BTZO) DBA Democratique to become a major force in the emerging fashion brand industry.

In July, we announced the acquisition of two brands joining the Democratique family. These brands included E-Motion Apparel and Lexi-Luu Designs. In July we closed both of the acquisitions as planned, and their results will be announced in our upcoming 10-Q filing. In addition, Democratique has identified our next two target acquisitions which we expect will occur over the next two months. Each of these brands represents a unique opportunity to capitalize on a specific market niche and current gap in the market.

Target 1: SKIPJACK DIVE & DANCEWEAR INC.

Skipjack Dive & Dancewear represents one of our next two strategic acquisitions. Skipjack Dive & Dancewear sells swimwear and divewear in all sizes, including plus size for more modest swimwear. In addition, the acquisition of Skipjack provides Democratique with manufacturing equipment, offering an additional revenue stream via subcontracting manufacturing to other fashion brands. Democratique expects to announce the executed LOI for Skipjack by the end of November 2014.

Target 2: PUNKZ GEAR INC.

The second acquisition in the pipeline is Punkz Gear. This is a sister company of Lexi-Luu Designs Inc. Punkz Gear is a kids hip hop dancewear line for dance and hip casual wear. Punkz Gear is manufactured out of the Lexi-Luu Designs facility in Mesa, Arizona, and is also owned by our CEO, Hubert Blanchette. We expect to announce the executed LOI for Punkz Gear in December 2014.

It is also worth noting that our core portfolio brands are performing well. The following summarizes these brands, and provides a recap.

E-Motion Apparel Inc.

E-Motion Apparel is a savvy niche brand that offers unique, tie-dyed casual wear for women. Founded in 2011, E-Motion Apparel is currently available in more than 50 stores with presence in many hotels, including MGM Grand, and spas from Florida to California. Democratique acquired 100% of E-Motion Apparel for a total of 350 million common shares of Bitzio, and a cash earn-out based on performance. Management has been working aggressively to further build this brand, with the launch of its new website and ecommerce capabilities, the procurement of new sales team members, and enhancing the company’s production capabilities.

Lexi-Luu Designs Inc.

Lexi-Luu Designs is a current leader in girls dancewear. Lexi-Luu had revenues of approximately $600,000 in 2013. Our team is already working with Lexi-Luu to expand.

Cleo Inc.

Founded by Angie Daza, CEO, in 2011, Cleo is a jewelry design company inspired by handcrafted jewelry made by local artisan women in Peru. Its “fair trade” products use native materials such as silver and gemstones, and are crafted by local women.

We are focused on further growing the current portfolio, while increasing our visibility in the capital markets as the new Bitzio – Democratique. Similar to our closest comparable, Sequential Brands Group (Nasdaq: SQBG), we will grow from a result of both performance and acquisitions over time.

Our team is fully committed to accelerating our brands for the benefit of all stakeholders.

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.