Ann: March 2016 Quarterly Report including Appendix 4C-IOT.AX, page-5

The IOT Group Sales team have been working on seeking the strongest distribution channels and relationships in the United States, Canada, Mexico, Japan, Australia and the United Kingdom.

The IOT Marketing team have been developing product packaging and point of sales materials in different languages and are preparing them for mass global distribution.

The Public Relations team including Max Markson has prepared an outstanding US and Australia PR and marketing program for the release of the upcoming Roam-e and OK Watch products.

The technical team have been working solidly on designing, programming and developing the OK smart watches and the Roam-e, both here in Australia at the development lab at the IOT Office in Sydney and at the IOT production facility in China.

The Company also has resourced up with high quality, experienced people in the technical, marketing, product management, logistical and financial departments.

In the first quarter of 2016, IOT Group has built a solid foundation for the release of the OK Smart Watches and its Flying Selfie - Roam-e in Q2 and Q3 for global mass distribution.