CODEIFAI LIMITED — Capital/Financing Update 2016

May 8, 2016

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ASX: YPB

ASX/MEDIA ANNOUNCEMENT 9 May 2016

YPB launches T3 mini scanner

• First production run of T3 scanners and 100 unit sale to client

• Existing T2 scanner to remain in production

• Smallest, most cost effective invisible tracer/scanner technology

YPB Group Ltd (ASX:YPB) has released its patent pending T3 mini scanner, with the same functionality as the T2 model but measuring a third the size it is less expensive to produce, allowing for greater sales and higher margins.

The T3 scanner, the result of more than 12 months R&D, provides the opportunity for much wider distribution of scanners, including retail stores and hospitality venues, allowing vendors to demonstrate authenticity of products to customers. The T3 also allows brand owners, financial institutions and Government agencies to deploy scanners more widely for quick and easy product authentication in supply chains, production lines and at retail outlets.

The T3 scanner, whilst being significantly smaller than the T2, remains easy to use in identifying the absence/presence of YPB’s invisible tracer.

An initial purchase of 100 units by YPB’s major bottle closure customer HICAP has been delivered for a restaurant pilot. The pilot will be undertaken prior to a proposed wider release by a well-known Chinese liquor brand, with distribution to restaurants to enable authentication in the presence of customers.

HICAP, a major bottle closure company in China with an annual production exceeding two billion closures, executed a supply contract with YPB in early 2015. It is now ramping up production of bottle closures incorporating YPB’s covert tracer material with a near term target of 200 million closures.

YPB Executive Chairman John Houston said: “The release and first sales of our T3 scanner is a significant milestone for YPB as it will accelerate the take up of our tracer/scanner technology globally. The new T3 mini scanner, with its convenient size and lower cost, has been highly sought after and anticipated by our clients.”

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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.