IOT : ASX Announcement - Telstra Purchase Order

ASX Announcement 7THAugust 2017 TELSTRA FLIES "AIR SELFIE CAMERA" WITH PURCHASE ORDER!

1. Highlights

   • Telstra, Australia's largest telco,has placed an initial purchase order for the AirSelfie Camera;

   • Initially stocked in 65 Telstra stores.

2. Purchase Order

   The IOT Group Limited (ASX: IOT) ("IOT Group" or "the Company") is pleased to advise that Australia's largest Telco, Telstra Corporation Limited ("Telstra"), has placed their first set of purchase orders for the AirSelfie Camera.

   The AirSelfie Camera will initially be sold through 65 of their select Telstra-Owned stores, which include their Tier 1 stores, Discovery stores, Experience Centres and +61 stores.

   This initial order from Telstra helps underpin IOT Groups' view that the AirSelfie Camera is a very innovative and attractive product, helping Telco's achieve growth in Tech products outside of mobile phones and accessories.

   The Telstra Discovery Stores offer a unique experience in Telco retailing with complete solutions for the home, business and mobile connectively. The Stores features "+61", a new tech accessories store, which includes the latest range of wireless speakers, headphones, drones, connected bags, and wearables.

   With the ROVA already in distribution at one the largest US Telcos, T-Mobile, as well as numerous online and big box retailers. The AirSelfie Camera adds a further unique product to the IOT product range allowing IOT to be well positioned to capitalise on the growing market demand for flying Selfie cameras.

3. Commentary

In updating investors, IOT Group's Executive Director Mr Ian Dufell noted

" The recent news that SNAPCHAT is looking to buy the Company which manufactures the Hover Selfie Camera for US$200M is consistent with IOT Group's experience that US consumers see the Flying Selfie Camera as the new trend for capturing moments to share on social media"

"The major consumer electronics retailers view this emerging product sector as a key growth area for this Christmas sales season. The IOT Group believes it is well positioned to capitalise on this new category with the AirSelfie Camera and the ROVA."

Air Selfie, a revolutionary Pocket-Size Flying Camera

About IOT Group Limitedwww.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, useful and innovative for consumers in particular, the IOT Group is designing and developing a range of drones that looks to create a complete new category in the retail drones space.

Company Information

IoT Group Limited (ABN 66 140 475 921)

Level 9, 100 William Street EAST SYDNEY NSW 2011‌

Scott Brown Non-executive Chairman Tod McGrouther Non-executive Director Ian Duffell Executive Director

Ron Hollands Company Secretary Investor Enquiries: [e-mail]

Forward Looking Statements

All statements other than statements of historical fact including, without limitation, statements regarding projections, future plans and objectives of IOT Group, are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as 'anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "in principle", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of IOT Group that could cause IOT Group's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by these forward-looking statements will actually occur and investors are cautioned not to place any reliance on these forward-looking statements.

IOT Group does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained above, except where required by applicable law and securities exchange listing requirements.