CODEIFAI LIMITED — Capital/Financing Update 2015

Feb 11, 2015

ASX: YPB

ASX/MEDIA ANNOUNCEMENT 12[th] February 2015

YPB Group signs LOI with major international supplier of RFID and NFC technology

Key points

• LOI opens opportunity for YPB to protect Hidali’s RFID chips

• Hidali and YPB will work to develop near field communication (NFC) technology for product authentication

• Hidali plans to be a major supplier of Radio-Frequency Identification (RFID) tags in China

The Board of Anti-counterfeiting technology Company YPB Group Limited (ASX: YPB) (YPB, the Company) is pleased to announce that it has entered into Letter of Intent (LOI) with Beijing Guohe Haidali Electronics Technology Co.Ltd (Hidali) of the People’s Republic of China to apply YPB AntiCounterfeit Technology to Haidali products.

Under the LOI, the parties will also develop product authentication solutions for high end products using near field communication (NFC) technology.

YPB and Haidali will collaborate to incorporate YPB tracer into Hidali’s rapidly expanding production capability. The LOI comes after the parties successfully conducted a number of successful factory and field trials of YPB’s tracer and scanner technology.

NFC technology is becoming widely adapted globally especially for payment technology - Visa and MasterCard now incorporate NFC technology into Credit cards to enable “tap and go” payment. Also, major mobile phone manufacturers are adopting NFC by building reading capability into new generation handsets.

Hidali is a subsidiary company of Beijing International Technology Cooperation Center, located in the Beijing Shunyi District. It currently supplies around 30 million RFID tags per year to customers in Europe, Japan, South Korea and the USA, specialising in security document, pharmacuetical, medical, food and transportation industries.

A new factory in Hebei province is currently under construction and will increase Hidali’s capacity to 500 Million units per year.

YPB Executive Chairman and CEO Mr John Houston said:

“We are excited to enter into LOI with Guohe Haidali. This collaboration confirms the relevance of YPB’s tracer and scanner technologies because it can protect RFID tags from the efforts of counterfeiters, making them more secure. The projected growth and infrastructure investment being made by Guohe Haidali combined with their market position and their vision to adopt YPB’s technology offers YPB an unparalled access to these key high volume industries. he added “we are particularly excited to have access to Hidlai’s development capabilities to offer low cost NFC tags for high value items.”

For further information please contact;

Mr John Houston Mr Robert Whitton CEO Director and Company Secretary YPB Group Limited YPB Group Limited T: +61 458 401 088 T: +61418962212 E: john.houston@ypbsystems.com E: rob.whitton@ypbsystems.com

W: www.ypbsystems.com

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 anticounterfeiting 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 to supply 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.