CODEIFAI LIMITED — Capital/Financing Update 2014

Nov 4, 2014

ASX: YPB

ASX ANNOUNCEMENT 5 November 2014

YPB signs LOI for Distribution in Indonesia and India

The Directors of YPB Group (ASX: YPB) (YPB, The Company) are pleased to announce the signing of an Letter of Intent (LOI) to form a Joint Venture Distribution entity to cover Indonesia and India.

The LOI has been signed with Impact Media Solutions (IMS) which was formed in 2004 and has served Asia’s leading Retailers and Brands primarily in generating ‘other income’ with implementation of strategic marketing services and innovative media.

IMS has offices in Indonesia, India and China and collaborates with the world’s leading fast moving consumer goods (FMCG) brands, managing their brand awareness, activation, and merchandising ambitions across the IMS network of modern and traditional trade outlets. It has a portfolio of over 700 FMCG brands, and its brand partnerships across South East Asia and China include: Nestle, Unilever, Coca Cola, P&G, Godrej, Abbott, Heinz, Danone, Johnson & Johnson, Colgate Palmolive, L’Oreal, Beiersdorf and Kimberly Clark to name a few.

IMS also manages the ‘other income’ generation for Retail clients including; Carrefour, Hypermaret, Lottemart, Big Bazaar, Aditya Birla Group, and Reliance Retail.

The intent of the agreement is to form a JV Company equally owned by IMS and YPB Group to distribute YPB and Brand Reporter initially in Indonesia where IMS has strong presence. IMS will provide staff and facilities and customer reach to the JV and YPB will provide support for the products and services. It is agreed that YPB has a Call Option over the share that it does not initially own which can be exercised after 12 months and paid by shares in YPB Group at a 30 day VWAP calculation.

Commenting on the Distribution opportunity created by this LOI, the CEO of YPB, Mr. John Houston commented, “we are delighted to partner with IMS in Indonesia and India, this gives YPB significant reach into territories, brands and retailers which all are exposed to Counterfeit and product diversion. IMS has excellent relationships in these territories and the sale of YPB products and services are a natural extension of their existing business.

IMS’ CEO, Mr. Neal Gee commented, “IMS is excited to partner with YPB to take their innovative anticounterfeit services into our Indonesian and Indian Operations. Initial presentations to our key Brand customers indicate strong interest in adopting YPB’s solutions to both differentiate and protect their Brands in these territories. A key driver for Brands and Retailers is consumer trust, and we believe YPB’s solutions encourage the development of trust between brands, retailers and customers in an easy and cost effective manner.”

It is intended that IMS will commence sales of YPB within the first Quarter of 2015 following customer presentations and submissions made by the end of this year.

For further information please contact;

Mr John Houston CEO YPB Group Limited T: +61 458 401 088 E: john.houston@ypbsystems.com W: www.ypbsystems.com

Mr Greg Wood Managing Director K S Capital T: +61 416 076 377

E: g.wood@kscapital.com.au

Media and Investor Inquiries

James Moses Media and Investor Relations Mandate Corporate T: +61 420 991 574

E: james@manadatecorporate.com.au

About YPB Group

YPB Group (ASX:YPB) in Chinese means “you pin bao” or in English “excellent brand protection” and is an anti-counterfeiting technology developer and provider. YPB has a unique, cost effective, invisible and indestructible anti-counterfeit solution that allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting. YPB and is certified and licensed in The People’s Republic of China.

YPB Group’s core products include;

Covert Forensic Tracers – Patented, these are hidden, invisible particles fused into a product or packaging during or after the manufacture process. The Tracers are inexpensive can be used in all key product manufacturing and packaging industries including plastics, paper, inks, textiles and coatings. They cannot be seen or removed, are non-toxic and meet Food Contact specifications. They consist of infrared, UV light energy and X-ray sensitive particles detectable by YPB’s scanner technology.

YPB owns two patents over its Tracer products and is the only Company currently licensed in China that supplies invisible tracers.

Scanner – YPB’s proprietary scanner detects YPB’s forensic Tracers, they are low cost and can be used at any point in the supply chain – from manufacture through to point-of-sale.

Brand Reporter – A Patent Pending technology platform designed for Governments, Brands and consumers to identify, manage, track and report counterfeit of divergent products within supply chains or at point of sale in a simple and easily deployed application suite available on all popular smartphones.