CODEIFAI LIMITED — Capital/Financing Update 2015

Jul 30, 2015

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ASX: YPB

ASX/MEDIA ANNOUNCEMENT 31st July 2015

IPP strengthens position in Government document security

Specialist security consulting business Intellectual Product Protection Co Ltd (IPP), a wholly owned subsidiary of anti-counterfeiting technology company YPB Group Limited (ASX: YPB) (“YPB, the Company”), has signed a Memorandum of Cooperation (MOC) with Foilmakers Australia Pty Ltd (FMA) for the production, marketing and sales of three IPP products.

Under the new deal two of the three products, VariSec Foil and Mul-T-Gram (MTG), will be manufactured by FMA with IPP responsible for the marketing and sales of the products. The third product, Bi-Component Security Thread, will also be marketed by IPP with manufacturing to be completed by Fiber Innovation Technologies.

This IPP technology has been adapted into more than 100 million e-Passports worldwide to date, generating approximately $2.5 million in revenue to date.

Industry research indicates that there are 500 million e-passports in circulation and approximately 125 million new passports are issued annually, which could adopt both the VariSec foil and IPP’s security thread.

VariSec Foil is an innovative hot stamping foil that can contain both overt and covert forms of security and is used within high security government issued documents and commercial applications for brand protection. MTG is a holographic foil and label technology that is combined with the VariSec foil for a more secure product offering, while Bi-Component Security Thread is a patented technology developed for use in high security documents such as passports.

The MOC is effective until 30 June 2016 with an option to renew for up to three additional one-year terms. YPB and its subsidiaries are focused on continuing and improving upon marketing and sales of these IPP products to governments, government agencies and Fortune 500 companies seeking such security technologies.

“IPP’s technologies such as VariSec Foil are widely regarded as a premium offering in terms of document security and brand protection,” said YPB Group CEO John Houston.

“This new deal provides a strong platform from which we can grow the IPP business moving forward.”

FMA is part of Milford Astor, an Australian owned and operated private company established in 1954 with offices in Sydney, Melbourne and Adelaide. The company specialises in stamping foils, which it exports worldwide, hot stamping, pad printing machines, thermal transfer ribbon and a wide range of associated printing consumables. IPP and FMA agree to equally share profits from the sale of all three products.

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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. Robert Whitton CFO and Company Secretary YPB Group Limited T: +61 418 962 212 E: rob.whitton@ypbsystems.com

Media and Investor Enquiries

Matthew Wright NWR Communications +61 451 896 420 matt@nwrcommunications.com.au

About YPB Group

YPB Group (ASX:YPB) is a leading worldwide solutions provider in brand protection, product authentication and anti-counterfeit technology listed on ASX in Australia and operating in China, USA, Australia and South East Asia. The company has developed innovative technologies that PROTECT and DETECT. YPB’s Patented Tracer and scanner solutions PROTECT products from the risks of counterfeit and diversion. Brand Reporter powered by YPB allows Brands, Governments and consumers to DETECT the incidence of counterfeit.

YPB’s solutions are customizable to the market needs and we are continuing to create innovative new products for brands, manufacturers, retailers, governments and consumers.

PROTECT

YPB has developed patented invisible Tracer material that can be embedded into products and packaging during or after the manufacture process. The Tracers are inexpensive and cannot be seen, removed or destroyed.

Using YPB’s handheld scanner the Tracer can then be detected in products to determine if they are real or fake.

YPB currently has contracts in place with major packaging and product manufacturers in China and is growing in the USA, Australia and Thailand.

DETECT

Brand Reporter is YPB’s technology platform designed for Governments, Brands and consumers to identify, manage, track and report counterfeit or divergent products within supply chains or at point of sale. The customised solutions are simple and easily deployed applications available on all popular smartphones.

Brand Reporter also utilizes crowd sourcing information and allows consumers to interact with products in the market using QR codes, track and trace, product scanning and consumer engagement features which can be customised to specific needs.

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