CODEIFAI LIMITED — Capital/Financing Update 2016

Jun 30, 2016

ASX/MEDIA ANNOUNCEMENT July 1st 2016

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ASX: YPB

YPB takes first step into pharmaceutical industry

• Three-year supply contract with Universal Pharmaceuticals Ltd for the provision of YPB's anti-counterfeit and consumer engagement technologies

• Universal Pharmaceuticals – Australian company exporting pharmaceutical products to growing Chinese and South East Asian markets

• Reflects greater awareness of potential counterfeit issues in the Australian pharmaceutical industry and importance of brand protection

YPB Group Limited (ASX:YPB) has entered into a supply contract with Universal Pharmaceuticals, a NSW-based pharmaceutical company exporting quality pharmaceuticals to the rapidly-growing Asian market.

Under the contract YPB will provide its invisible covert tracer technology to Universal Pharmaceuticals. YPB’s tracer and scanner solution will be used within the supply chain to verify the original product and detect the presence of counterfeit goods.

Universal Pharmaceuticals has undertaken to apply YPB's tracer to 1 million items during 2016, with a larger and longer term relationship expected to develop after the successful initial rollout.

In addition, YPB will provide Universal Pharmaceuticals with online authentication of its products through YPB's Connect Platform. This platform provides a deeper level of protection and directly connects Universal Pharmaceuticals with its customers in Asia, allowing it to increase brand confidence and loyalty via ongoing direct engagement with its customers.

Universal Pharmaceuticals has been manufacturing for the Australian and Asian pharmacy trade for more than 15 years. Clients in Australia include household names such as Guardian, Soul Pattinson and Amcal. Universal Pharmaceuticals brands include Wealthy Health, Goodlife Nutrition and Shelano.

Executive Chairman of YPB Group John Houston said: "Universal Pharmaceuticals is experiencing strong year-on-year growth in Asia and YPB is proud to be associated with this growth. More and more companies are realising the danger of counterfeit products, and the knock-on effect for their brands and reputations. The innovators are now taking steps to minimise that threat and widespread adoption by branded exporters will rapidly follow over the next few years. YPB technology allows brands to PROTECT, DETECT and CONNECT to end customers."

CEO of Universal Pharmaceuticals Laurence Dam said: “YPB’s technology gives Universal Pharmaceuticals and our customers peace of mind that our products are authentic and therefore protects our brand. YPB’s ability to connect Universal with our end customers globally is unique and cutting edge. It positions Universal Pharmaceuticals for excellent growth and customer engagement opportunities.”

For further information please contact;

Mr. John Houston Executive Chairman YPB Group Limited T: +61 458 701 088 E: john.houston@ypbsystems.com W: www.ypbsystems.com

Mr. Robert Whitton CFO and Company Secretary YPB Group Limited T: +61 457 666 309 E: rob.whitton@ypbsystems.com

Media and Investor Enquiries

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

About YPB

YPB Group (ASX: YPB) is a pioneer in advanced brand protection solutions. Listed on the Australian Securities Exchange, we are expanding our global footprint with an established presence in China, USA, Australia and South East Asia.

YPB’s patented anti-counterfeit technology combined with its security packaging solutions, consulting and forensic services enables businesses to protect their high value brands from the risks of counterfeit and product diversion.

YPB’s full range of services will give businesses the ability to cost effectively protect their brands, easily detect counterfeits and give them the opportunity to connect with their consumers about the authenticity of their brand.

PROTECT

Security print packaging and labeling

YPB offers a wide range of intelligent security packaging and labeling solutions that can be included into almost any material and is a cost effective brand protection solution for companies wanting to protect the integrity and value of their brands in high-risk markets.

IP solutions & forensic services

YPB’s IP solution specialists will work with quality brands and Governments, to develop personalised brand protection strategies and solutions that will deliver real protection and safety for brands, products and consumers.

DETECT

Scanner and tracer protection solutions

YPB’s patent protected state-of-the art tracer technology is invisible, cannot be copied or destroyed. Brand owners that include YPB’s tracers in their packaging can use YPB’s scanners to verify their product’s authenticity. If a counterfeit is detected YPB’s forensic services will consult with a brand owner to develop strategic solutions to protect the brand counterfeiting and product diversion.

CONNECT

Smartphone applications to detect and connect

YPB’s sophisticated, user friendly and powerful smartphone applications allow brand owners and consumers to identify and report suspected counterfeit or divergent products and allows brands to connect and engage with consumers via QR codes, near field communication, track and trace, product scanning and consumer engagement. Giving brand owners valuable and actionable “big data” about their consumers and products through a powerful data analytics capability.