CODEIFAI LIMITED — Capital/Financing Update 2016

Feb 9, 2016

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ASX: YPB

ASX/MEDIA ANNOUNCEMENT 10 February 2016

Joint venture agreement to protect government documents in Latin America

YPB Group Limited (ASX:YPB) has entered into an exclusive joint venture and consulting agreement with Affyrmx Group LLC focused on the protection of government documents, including but not limited to visas, vital record documents, ID cards and financial instruments including currency, in Latin America.

The agreement has a six year duration and will initially target federal and state government agencies in Mexico, aiming to integrate YPB’s Protect and Detect patented technologies within a range of high security printing services to protect high security, high value documents from counterfeiting.

Based in Atlanta, Georgia, Affyrmx was founded in 2011 and 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.

Affyrmx will be responsible for customer/project sourcing and customer liaison, with YPB responsible for materials sourcing, production and logistics. The two parties will manage projects jointly to ensure the integrity of the supply chain and delivery of a seamless solution to clients.

President of Affyrmx, Anthony J. Butte said: "YPB has become a well respected industry leader in anti-counterfeiting and we look forward to this partnership and the opportunity to bring our combined offering to Latin America. YPB’s unique portfolio of technologies will allow us to offer customers an end-to-end security solution while allowing YPB the ability to increase its geographic footprint and gain access to a much broader customer base, especially in the government sector."

YPB CEO John Houston said: "YPB has proven its technology in the government document sector in China with the Ministry of Public Security as well as within high value documents for regional banks and tax authorities. In addition two major western economies incorporate YPB technology into its e- passports. Our partnership with Affyrmx builds on this experience for the government sector in Latin America, starting with Mexico's 130 million population, creating an exceptional business opportunity for YPB."

For further information please contact;

Mr. John Houston CEO 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.

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