CODEIFAI LIMITED — Capital/Financing Update 2016

May 2, 2016

==> picture [595 x 94] intentionally omitted <==

ASX: YPB

ASX/MEDIA ANNOUNCEMENT 3 May 2016

YPB secures 14 million unit reorder for VariSec passport solution

• Reorder of YPB’s VariSec technology for a major first world economy

• Total gross revenue approximately A$500,000

• YPB’s Government Vital Documents business rapid growth continues

YPB Group Ltd (ASX:YPB) is pleased to announce that it has received a further order for its proprietary VariSec technology to apply to approximately 14 million ePassports in a deal that is expected to generate A$500,000 gross revenue.

The reorder of the technology is for a major first world economy which previously ordered VariSec technology in October 2015. It is estimated that these new passports will be issued in the next six months.

This reorder of VariSec from the major first world western economy highlights the recurring nature of the market for securing passports. YPB expects the country to place a third order for the technology in the latter months of 2016.

The International Civil Aviation Organisation (ICAO) has developed the global machine readable Passport programme, and it estimates that 125 million new ePassports are currently issued annually by 93 UN member states. A further 21 additional countries are to deploy ePassports in the next 12 to 48 months.

YPB believes that VariSec is the only security foil in the global ePassport marketplace. With just three countries protected by VariSec to date, ePassports are a significant opportunity for YPB given the clear majority of ePassports do not incorporate VariSec’s enhanced defenses and the 23% increase in the number of ePassport issuers expected over the next 48 months.

YPB Executive Chairman John Houston said: “The Government Vital Documents business is an important segment for YPB and one where we are experiencing significant success with our suite of anti-counterfeit products.“

“Governments and their agencies are committed to securing their vital documents in the face of worldwide security risks.”

“The reorder from this country confirms our Government strategy and gives us confidence to continue to develop our range of solutions.”

==> picture [595 x 93] intentionally omitted <==

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.`