CODEIFAI LIMITED — Regulatory Filings 2014

Aug 24, 2014

ASX: YPB

ASX/MEDIA ANNOUNCEMENT 25 August 2014

YPB Group signs contract with People’s Republic of China Ministry of Public Security

Shipments of YPB’s anti-counterfeit products for Chinese Government Security applications underway

Anti-counterfeiting technology Company YPB Group Limited (ASX: YPB) (YPB, the Company) is pleased to announce that it has entered into a supply contract for the People’s Republic of China (PRC) Ministry of Public Security (MPS) for the provision of its invisible tracer products and T1 scanners.

The contract has been signed with the First Research Institute of the MPS for a trial of YPB’s unique anti-counterfeit products and services, and will have an initial focus on access control and personnel identification.

YPB advises that, under the contract, initial shipments of its invisible tracer products and T1 scanners to the MPS for Chinese Government Security applications have commenced.

The MPS regulates China’s Police force and many facets of security in the country including Border Control and ID cards. It is the country’s principal police and security authority and is the government agency ultimately responsible for day-to-day law enforcement. The MPS operates a system of Public Security Bureaus, which are broadly the equivalent of police forces or police stations in other countries.

YPB Executive Chairman and CEO Mr John Houston said:

“The Company has hit the ground running post its ASX listing earlier this month in line with our aggressive sales and marketing business plan. This includes growing our existing client base and expanding the Company’s product and service offering. The contract for the PRC’s Ministry of Public Security forms part of the first stage in this process, and we continue to be excited by the level of interest in our unique anti-counterfeit technology and its potential applications.”

YPB listed on the ASX on 7 August 2014 after a successful $3.75 million new listing Offer. The Company provides a unique, patented anti-counterfeit solution that is cost effective, invisible and indestructible, and allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting.

ENDS

For further information please contact;

Mr John Houston CEO YPB Group Limited T: +61 458 401 088 E: john.houston@ypbsystems.com W: www.ypbsystems.com

Mr Greg Wood Managing Director K S Capital T: +61 416 076 377 E: g.wood@kscapital.com.au

Media and Investor Inquiries

James Moses Media and Investor Relations Mandate Corporate T: +61 420 991 574 E: james@manadatecorporate.com.au

About YPB Group

YPB Group (ASX: YPB) is an anti-counterfeiting technology company. It provides a unique, cost effective, invisible, indestructible anti-counterfeit solution that allows companies and governments to protect the value of their brands and minimise loss of earnings from counterfeiting. The Company is initially focused on the China and greater Asia markets. The YPB business is well established and has a number of substantial customer contracts in place and a strong new business pipeline.

YPB Group’s core products include;

Forensic Tracers – These are hidden, invisible and indestructible particles fused into a product or packaging during or after the manufacture process. The Tracers can be used in all key product manufacturing and packaging industries including plastics, paper, inks, textiles and coatings. They cannot be seen or removed and are impossible to destroy or damage as they are part of the product. They consist of infrared, UV light energy and X-ray sensitive particles detectable by YPB’s scanner technology.

YPB owns two patents over its Tracer products and is the only Company currently licensed in China to supply invisible tracers. YPB’s Tracers are considerably cheaper than current alternatives, and have high gross margins on sales, of up to 90%.

Scanner – YPB’s proprietary scanner detects YPB’s forensic Tracers and confirms the host product’s authenticity. They are low cost and can be used at any point in the supply chain – from manufacture through to point-of-sale. Encryption is used on the scanners and software, and any attempt to reverse engineer triggers a self-destruct software code.

Smartphone App – A revolutionary new application to provide consumers the ability to authenticate a product as real or fake, via their mobile phone handset. The mobile phone App is planned for commercial launch in H2, 2014 and will initially target the massive China Smartphone App market. A patent application has been submitted for the Smartphone App and is Patent Pending through the PCT process.