CODEIFAI LIMITED — Capital/Financing Update 2015

Jan 29, 2015

ASX: YPB

ASX/MEDIA ANNOUNCEMENT 30[th] January 2015

YPB Group signs supply agreement with Hicap Closures - a major International supplier of solutions for bottle closures

Key points

• YPB has entered into a 4-year supply contract with Hicap Closures Company Ltd for the provision of its anti-counterfeit invisible tracer products and T1 scanners.

• Hicap is one of China’s largest suppliers of high-end bottle closures and supplies 2 billion closures per year.

• Hicap will include YPB’s tracer in its metal and plastic closures for glass bottles in the wine and spirits, pharmaceuticals and food industries in China and internationally.

• Contract is projected to generate gross revenue of AUD $10m (~48.5 million RMB) over the term of the contract.

The Board of Anti-counterfeiting technology Company YPB Group Limited (ASX: YPB) (YPB, the Company) is pleased to announce that it has entered into a Supply Contract with Hicap Closures Co. Ltd. (Hicap) of the People’s Republic of China (PRC) for the provision of its anti-counterfeit invisible tracer products and T1 scanners.

Hicap is one of China’s largest suppliers of high-end bottle closures. The supply contract is for an exclusive 4-year period, and is potentially worth AUD$10 million (~48.5 million RMB) based on projected gross revenues over the term of the contract.

The contract represents a major achievement for YPB in the execution of its business plan to provide anti-counterfeit solutions to companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting.

Under the supply contract YPB will supply its anti-counterfeit technology to Hicap’s high quality metal and plastic bottle closures supplied to their customers in the wine and spirits, pharmaceuticals and food industries in China and internationally.

Hicap has a current annual manufacturing capacity of 3 billion closures and currently supplies 2 billion closures per year.

YPB and Hicap successfully conducted several factory and field trials of YPB’s tracer and scanner technology and now, under the supply contract, will collaborate to incorporate YPB tracer into Hicap’s rapidly expanding production capability to their four subsidiaries in China; Hicap Yantai, Hicap Deyang, Hicap Shaanxi and Hicap Luzhou.

Hicap’s screw cap closures for bottles are widely adopted in China and in international markets especially in the wine, food and pharmaceutical industries. Its portfolio of clients in China include: Moutai, Wuliangye, Luzhou Laojiao, Jiannanchun, Langjiu, Fenjiu, Xifeng and Infinitus.

Internationally, Hicap closures are sold to clients in Africa, America, CIS, Europe and South-East Asia. In Australia it supplies to brands such as Peter Lehman and Taylors wines.

Hicap is headquartered in Yantai in Shandong Province, and has a significant Research and Development capability enabling it to be flexible to meet individual customer requirements. It is the only cap manufacturer in China that has ISO, 9001, 14001, HACCP, OHSMS certification.

YPB Executive Chairman and CEO Mr John Houston said:

“We are pleased to enter into a supply contract with Hicap Closures. This collaboration confirms the relevance of YPB’s tracer and scanner technologies and the diverse markets in which our technology can be used. The projected growth and infrastructure investment being made by Hicap Closures combined with their market position and their vision to adopt YPB’s technology offers YPB access to this key high volume industry. We are particularly excited to be working with Hicap Closures to protect the brands they supply against the efforts of counterfeiters. “

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 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 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.