July 1, 2019 YPB Marketing

Mid-Year Business Update

• Significantly decreased monthly expenditures following organisational restructure
• Focus on food & beverage, pharmaceuticals and Cannabis sector
• First Sales Agent appointed in Indonesia
• Increased Revenues from YPB Connect
• Increased Revenues in China from YPB’s renewed focus with sales partners
• Technical roadmap update on Motif Micro and Blockchain

Product authenticity and consumer engagement solutions provider YPB Group Ltd (“YPB” or “the Company” or “the Group”) is pleased to provide an update to the market on its recent activities and achievements as well as the strategic and commercial focus for the second half of 2019.

YPB has made further significant progress in streamlining and improving operational efficiencies and the effectiveness of its operational and sales teams across the Group. The finance and administration teams have been reduced and other operational efficiencies are anticipated to lead to a significantly lower operating cost profile from July onwards with the full effect of costs savings to be realised over the course of the September quarter.

Following a review of the Company’s current sales activities and prospects for the greatest sector adoption of YPB’s products the Company is proactively targeting the food & beverage, pharmaceuticals and Cannabis sector. These industry verticals demonstrate the need and willingness to adopt YPB’s solutions and the Company is focused on expanding the client base through leveraging its existing distribution channels and its success to date in these verticals.

The total remuneration costs alone from June quarter 2018 to June quarter 2019, have been reduced by circa 46%. As part of this reduction, the non-executive directors have moved to zero cash as a sign of commitment and support for the broader restructure and future of the Company.

The sales team has been consolidated under experienced sales leadership that is driving a renewed focus on the Company’s key verticals. As part of this renewed focus, the Group has been working with its key channel partners to set operational plans for the distribution of YPB’s products. These efforts began and have already started to flow through to results in China where revenues have materially increased as reported at the recent the Company’s AGM.

YPB is also pleased to announce that the first YPB sales agent has signed in Indonesia. PT Meidanum Imperii intends to sell YPB’s solutions into medical equipment and packaging in the beauty, cosmetics, food & beverage and baby products sectors. The principal of this

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Company, Meida E. Andel was introduced to YPB through the working relationship with existing major client Combiphar.

Combiphar has been the major contributor to the revenue growth from the YPB Connect Platform with further contribution from the adoption by the Cannabis accessories sector that has expanded across a number of product lines sold through e-commerce platforms where product authenticity is a key issue for brands and consumers.

YPB’s recent successful commercial launch of the Vintail technology with Seppeltsfield Wines is a major milestone that the Company sees as a new standard for wine exporters looking to protect their brand, their business and their consumers. In second half 2019, the sales team will be looking to capitalise on the launch with a view to extending the adoption of the Vintail solution in the Wine industry.

YPB believes that the immutable ledger made possible by the incorporation of blockchain is a logical fit for product authentication and YPB is reviewing third party service offerings that can “Blockchain enable” the Connect Platform. This may strengthen the brand and consumer perception of authenticity through recording key data points including scans of YPB’s products on the blockchain. Adopting simple third party plug-ins rather than developing a Blockchain solution in-house, allows YPB to concentrate its R&D investment in its IP suite. YPB is in discussions with its stakeholders including clients and distribution partners to determine the timing and nature of the future incorporation of Blockchain into the Connect Platform processes to ensure that the commercial case is clear before proceeding.

The single most important milestone on the technical roadmap continues to be the progression of the globally unique and highly protected IP suite that is ‘Motif Micro’. The much-anticipated curved-surface smartphone readability of Motif Micro is in the final stages of testing. YPB believes that there is significant potential to licence as well as attract early adopters as soon as the first commercial release is technically possible. YPB expects to update the market on this milestone early in the September quarter.