ASX Announcement

ROAM-e Update

Sydney, 8th June 2016: IOT Group Limited (ASX: IOT) announced today that the release of its world first ROAM-e "flying selfie" drone product is on track. The ROAM-e is in the final testing and tuning stages and will be ready for shooting the Roam-e Video next week

- weather permitting.

Chinese manufacturing partner AEE is currently gearing up for Production in Q3 for the upcoming global orders.

Storyboarding, planning for the ROAM-e Video is in progress and filming and production of the ROAM-e Presentation Video will be next week - weather permitting. The release of the Roam-e presentation video will be soon after production and editing has been completed.

All Point of Sale, presentational materials and sales decks are currently in production and will soon be available for dispatch to all global sales teams.

The first full sales presentation to US based "Big Box" retailers is scheduled for New York in late June, at which time IOT's distribution partner will share with the customer a production sample of the ROAM-e, a demonstration video of the product, point-of-sale displays, and related sales collateral.

Bryan Corlett, the Chief Executive of TopTech Distribution, IOT's partner in the North American market said: "The personal drone market is growing rapidly in the US, Canada and Mexico, and retailers are extremely eager to purchase products that are innovative, priced well, and exciting, and our team is looking forward to showing them this great device in a few short weeks. We're very confident it will be a big seller, and it has the potential to be "The" product for Christmas this year and beyond."

Simon Kantor, ROAM-e Inventor, Founder - Executive Director of IOT Group added: "We remain focused and excited about prospects for the ROAM-e in global markets, and are looking forward to present to retailers in the world's largest market. I am personally heading off to New York late June to present with our US partner to kick off the first round of ROAM-e "Big Box" retailer presentations. Indicative initial opening orders from IOT's US distribution partner are 150,000 to 200,000 this year and are based on initial product discussions with major retailers, which are attracted to ROAM-e's combination of an attractive price point, unique technology, and world first product type."

Investor Contact

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

About Bryan Corlett and Top Tech Distribution LLC.

Bryan Corlett has been in the sales, promotion and distribution industry for 20 years, and operates nationally and internationally from a base in Newport Beach, California. Mr. Corlett leads one of the largest private networks of product sales professionals in the United States, and his team has sold leading products in major categories including health and beauty, weight loss and fitness, clothing, sports, household and cleaning products and consumer electronics. Their contacts into product purchasing decision-makers at every major retail group, both traditional and online, is unsurpassed. These kinds of private networks are based on relationships that take decades to develop. IOT was referred to Mr. Corlett by one of America's (and the world's) largest and most innovative retailers, which has a very strong relationship with him.

The Corlett network has sold tens of millions of dollars of goods annually to retailers including the Sony PlayStation and Apple products. Mr. Corlett selects a discrete number of products to promote, and unlike other "big name" distributors such as Brightstar and Ingram Micro, he can take on a single SKU product like ROAM-e from an unknown overseas company and devote the time, attention and resources (and give buyers the confidence in the product) to sell large quantities of it in short order. A company seeking to get this kind of sell through in North America could take years just to get the right meetings, and spend a fortune on market development with no assurance of success.

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.

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