CODEIFAI LIMITED — Capital/Financing Update 2016

Feb 18, 2016

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ASX: YPB

ASX/MEDIA ANNOUNCEMENT 19 February 2016

First order secured from Affyrmx JV for vital record documents

YPB Group Limited (ASX:YPB) has secured its first revenue producing order flowing from the recently announced Joint Venture (JV) with Affyrmx Group, with YPB to provide an initial order for high security vital record documents to the State of Jalisco, Mexico.

The maiden contract with Affyrmx is a key milestone for YPB and management believe these orders will provide a strong and recurring revenue stream from annualised repeats of this initial contract and others that are currently being tendered including but not limited to visas, vital records in other States, ID cards and financial instruments including currency for Latin America.

The recently announced JV with Affyrmx LLC, based in Atlanta, Georgia, has a six year duration and is an exclusive supply agreement whereby YPB will fulfil all security document contracts in Mexico secured by Affyrmx.

In 2015 YPB acquired the IPP Group based out of Bangkok, Thailand and the USA, which possesses a strong pedigree in the Government documentation arena. Subsequently in 2015, this saw YPB supplying its security technology to at least 20 million passports in two significant western countries in multi year supply contracts, with more in the current pipeline.

Affyrmx is a trusted security provider and adviser, primarily to governments and central banks in Latin America. The company offers a full range of high security products and solutions, all of which are designed to help governments combat the growing security threat posed by counterfeiters.

YPB CEO John Houston said: “We are delighted that the Affyrmx JV has so quickly provided this maiden order and additional revenue stream to YPB, and we are proud to have been selected to provide this vital record document to the State of Jalisco. This order is the first of what we believe will be a growing and consistent revenue stream which will not only be profitable, but also enhance YPB’s reputation as a trusted source of anti-counterfeit solutions to the highest levels of Government.”

For further information please contact;

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

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

W: www.ypbsystems.com

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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.

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