CODEIFAI LIMITED — Capital/Financing Update 2015

Jan 12, 2015

ASX: YPB

ASX/MEDIA ANNOUNCEMENT 12[th] January 2015

YPB Group signs supply contract with major supplier to China’s tobacco and liquor industry

Key points

• YPB has entered into an exclusive 5-year contract with Shenzhen Shensaier Ltd for the provision of its anti-counterfeit invisible tracer products and T1 scanners.

• Shensaier will include YPB’s tracer in all high-end inks supplied to China’s biggest tobacco and wine brands.

• Contract potentially worth AUD$16M (80 Million RMB) based on projected revenues over term of the contract.

• Shensaier is one of China’s largest suppliers of high-end UV printing ink and paints to the Chinese Tobacco industry.

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 Shenzhen Shensaier Limited (Shensaier) of the People’s Republic of China (PRC) for the provision of its invisible tracer products and T1 scanners.

The contract signed with Shensaier is for the provision of YPB’s unique anti-counterfeit products and services for an exclusive 5-year period. The contract is potentially worth AUD$16 million (80 Million RMB) based on projected revenues over the term of the contract.

The initial focus of the contract will be Tobacco and Chinese Liquor packaging for major Chinese Brands. Shensaier’s approach is to include YPB’s tracer in all their high-end inks supplied to China’s biggest brands in Tobacco and Chinese wine, with orders due to commence in Q2 2015 and revenues projected to flow at the end of Q2.

YPB and Shensaier have conducted several factory and field trials of YPB’s tracer and scanner technology, and all these trials have passed with success. This has now led to the parties executing the supply contract for use of YPB’s invisible tracer products and T1 scanners which will ramp up over the next 5 years culminating in projected annual revenues of over AUD$6 million (30 Million RMB). Due to the large production volumes, there will be a necessary ramp up period before annualised volume estimates are reached.

Shensaier is one of China’s largest suppliers of high-end UV printing ink and paints, and is based in Guangdong, China. It supplies 18,000 tons of ink to the Chinese Tobacco industry annually, and its operations includes R&D, production, sales and post-sales service. Shensaier owns 13 registered patent rights in this field. Based upon these patented capabilities, it has developed a wide range of UV printing materials and has two production plants strategically located in the south and the north of China.

Additionally, the company, providing rapid and responsive services to customers dominating the cigarette-case printing industry, white wine and the smart-phone back cover (ABS/PC) coating industry throughout mainland China.

YPB Executive Chairman and CEO Mr John Houston said:

“We are delighted to enter into this significant contract with Shensaier and to grant them exclusivity for high end tobacco and liquor industries in China. Shensaier’s market position and their vision to adopt YPB’s technology offers YPB an unparalled access to these key high volume industries over the contract term”.

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.