ASX Announcement

"IOT Group completes $11.975m capital raising"

Sydney, 6 July 2016: IOT Group Limited (ASX: IOT) (IOT orGroup) advises that it has completed a capital raising of $11.975 million via a private placement ('placement') to professional and sophisticated investors. There was very strong demand for the capital raising.

The company will issue 171,074,680 ordinary class shares1('the placement shares') - at an average price of $0.07 per share, raising $11.975 million. The shares will rank alongside all other ordinary class shares of the company.

Mr Ian Duffell, Executive Director commenting on the placement said: "We are extremely pleased with the strong level of demand for our shares. The placement puts the Company in a strong financial position so that we can focus on the execution of the Company's plans and drive shareholder value."

The capital raising will fund production of the ROAM-e flying selfie camera to support expected global sales, general working capital and the development and demerger of the OTT and Intervision (internet based television network) businesses into a new company which it intends to list on the ASX.

The capital raising was undertaken by PAC Partners Pty Limited and KTM Capital. Outlined below is an indicative timetable for completion of the placement.

Contact

Ian Duffell - Executive Director of IOT Group Limited on 0488 024 000.

1 85,537,340 ordinary class shares will be issued pursuant to resolution 6 of the 30 June 2016 Annual General Meeting at a price of 8.5 cents each and 85,537,340 ordinary class shares at a price of 5.5 cents each, will be issued pursuant to Listing Rule 7.1.

About IOT Group Limited

www.theiotgroup.com

(Internet of Things)

IOT Group has tapped into global niche markets by adapting and enhancing existing trend products and making them more affordable and useful to consumers. The IOT Group is designing and developing a range of smart wearables, a range of flying selfie drones, augmented reality, virtual reality, home automation products and much more; as we look to create a complete IoT ecosystem over the next 24 months.

Utilising industry specific innovation and our own technology, we've created the first facial recognition flying selfie device operated through smartphones and vision control systems, called ROAM-e. With unique follow me truly functionality, a flight time of up to 20 minutes and the capacity to charge in just two hours! You will always capture perfectly uninterrupted panoramic shots with ROAM-e's 360 degree 1080p HD camera. And you will never miss a moment with ROAM-e's live streaming capabilities, so the action is always in real time whenever, where ever. ROAM-e is your personal companion who will always be within 5m of you, so you never have to worry about invading anyone's personal space. Built with the world's first dual-axis collapsible blades means that ROAM-e's light, compact and easy to carry and ready for any occasion but most importantly not weigh you down. Selfies have reached new heights!

Outdoor Konnect (OK) is focussed on designing and developing a range of affordable innovative wearable devices, accessories and outdoor products combining the latest technology with unique features. Our devices include a variety of smart watches with some already available through retailers and from our website.

About OTT Premium

OTT Premium knows that demand for Over-the-Top (OTT) solutions is ever increasing as consumers are viewing content anytime and anywhere. OTT Premium understands a fast go-to-market solution is needed and here's what sets us apart:

• Simple - we offer a hub/one-stop-shop service

• Proven - recognised international business success with global reach

• Advanced - powered by fully automated European technology at the forefront of OTT

• Experienced - assist with content acquisition, provide a solutions architecture & integration

• Reliable - we can align and be responsive to any business model

• Well connected - Working with all major and 2nd tier OTT ecosystem partners globally

OTT Premium provides some of the world's leading brands with unsurpassed OTT software delivering content that can be viewed on multiple devices and languages worldwide direct to your audience. We've done the hard yards for you through partnering with some of the biggest players in streaming, content provision, cloud storage, analytics, billing gateways and application development to provide you a complete

end-to-end content delivery solution. Whether you're a telco, broadcaster or production company, you are successfully equipped to compete with existing content providers through OTT Premium's packaged solution.

Company Information

IOT Group Limited (ABN 66 140 475 921)

Level 14, 39 Martin Place

SYDNEY NSW 2000

Email:[email protected]

Scott Brown Non-Executive Chairman Ian Duffell Executive Director Simon Kantor Executive Director

Ron Hollands Company Secretary