MYECO GROUP LTD — Capital/Financing Update 2017

Aug 20, 2017

==> picture [108 x 44] intentionally omitted <==

ASX RELEASE

21 August 2017

Micro-engineering innovation to achieve breathable film breakthrough

Highlights:

• SECOS gains access to MiniFAB’s world-leading technology under five-year exclusive licence agreement set to significantly boost the performance and quality of the Company’s products

• Implementing MiniFAB’s custom micro-engineering technology will empower SECOS to manufacture new products for the hygiene and protective garment markets that are tougher, thinner, flexible, more breathable and highly attractive to a growing market

• Implementation of SECOS’ new breathable film manufacturing technology will be highly cost-effective compared to traditional breathable film manufacturing equipment

Sustainable and eco-friendly bioplastics developer SECOS Group Limited (ASX: SES, “the Company”) is pleased to advise that it has executed a licence agreement with MiniFAB Pty Ltd (“MiniFAB”), an expert developer of custom micro-engineered products, that will see the companies work together to develop a micro-engineered system for the manufacture of breathable films from non-breathable polymeric films.

The new partnership will provide SECOS with exclusive licence access to MiniFAB’s cuttingedge microtechnology and will allow it to produce “first-of-its-kind” breathable films for the hygiene and protective garment markets by modifying SECOS’ existing plants. This will significantly raise the performance and quality of several of the Company’s film products.

This partnership follows 18 months of rigorous research and testing and, most recently, a sample of the new breathable cast film was sent to a key client which has resulted in a finished baby diaper that achieves market-ready levels of breathability.

SECOS Managing Director, Stephen Walters, said:

“We have devised a way to apply MiniFAB’s cutting-edge technology to our world-class ecofriendly bioplastics to achieve a true breakthrough in terms of producing breathable films that will provide manufacturers of hygiene and protective garment products the opportunity to offer zoned areas of breathability delivering new levels of innovation in their products.

Implementing this technology will empower SECOS to manufacture new products that are tougher, thinner, more flexible and offer great breathability.

During the December quarter, we will scale up the pilot line used as a prototype and roll out the new technology across SECOS’ plants next year with a view to delivering first customer orders in early 2018.

SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6805 e: info@secosgroup.com.au www.secosgroup.com.au

==> picture [107 x 43] intentionally omitted <==

The Company sees the first practical application of this new capability in creating strong film for diapers that is breathable only in the areas where breathability is required. We are particularly excited by the potential to boost the breathability of select parts of each roll of cast film: an ability which will further differentiate SECOS from its peers.

We see scope to ultimately apply this technology to modify our compostable films to make them breathable. This has never been achieved before and should represent a significant value driver for SECOS as we meet the market demand for more sustainable hygiene products.”

Agreement scope

SECOS has gained access to MiniFAB’s micro-technology under an exclusive licence agreement for a minimum period of five years with an option to extend for five additional years.

The cost of implementing the technology on SECOS’ production line will be highly costeffective compared to traditional breathable film manufacturing equipment.

About MiniFAB

SECOS’ counterparty, MiniFAB, is a world-leading privately-held ISO 9001 & ISO 13485 certified contract engineering firm which provides custom development and manufacture of micro-engineered products. MiniFAB delivers custom solutions into diverse markets including diagnostics and medical devices, environmental monitoring, packaging and aerospace.

The firm was established in 2002 and is headquartered in Melbourne, Australia with offices in the United States and Europe. MiniFAB's internationally-renowned team of engineers, industrial designers, scientists and production staff has completed more than 900 development projects with clients worldwide, and currently manufactures millions of high value micro-engineered products per year for its international customers.

For more information, please contact:

Richard Tegoni Executive Chairman +61 411 110 901 r.tegoni@secosgroup.com.au

Tim Dohrmann

Investor and Media Enquiries +61 468 420 846 tim@nwrcommunications.com.au

==> picture [108 x 44] intentionally omitted <==

About SECOS Group Limited

SECOS Group Limited (ASX: SES) is a leading developer and manufacturer of sustainable packaging materials. Based in Melbourne, Australia, SECOS supplies its proprietary biodegradable resins, packaging products and high-quality cast films to a blue-chip global customer base.

SECOS holds a strong patent portfolio and the global trend toward sustainable packaging is fueling the Company’s growth, bringing FY16 revenue of $21 million.

The Company’s headquarters and Global Application Development Centre are based in Melbourne, Australia. SECOS has a Product Development Centre and manufacturing plant for resins and finished products in Nanjing, China, with manufacturing plants for high quality cast films in Melbourne and Kuala Lumpur, Malaysia. SECOS’ annual production capacity is 7,200 tonnes of bioplastic resins, 15,000 tonnes of cast film and 2,000 tonnes of blown film and finished products.

SECOS has sales offices in Australia, Malaysia, China and the US, with a network of leading distributors across the Americas, Asia and Europe.

SECOS Group Limited (ASX: SES) ACN 064 755 237 Level 2, Suite 6, 205-211 Forster Road Mount Waverley VIC 3149 Australia t: +613 8566 6805 e: info@secosgroup.com.au www.secosgroup.com.au