Mr. James Nelson reports

YDREAMS BRAZIL SALES INCREASED BY 43% FOR THE SIX MONTHS ENDED JUNE 30, 2016

YDreams Global Interactive Technologies Inc.'s wholly owned subsidiary, YDreams do Brasil Servicos e Solucoes Interativas Ltda., had a substantial increase in net sales for the six months ended June 30, 2016, compared with the six months ended June 30, 2015.

Unaudited financial statements released earlier this year show YDreams Brazil realized and recorded net sales of $2,430,609 (6,749,816 Brazilian reals) in the first half of 2016 compared with $1,704,482 (4,733,357 Brazilian reals) in the first half of 2015.

This represents a 43-per-cent increase in net sales over the prior comparative six-month period (2016 versus 2015). The majority of sales of YDreams Brazil's products and services originated with major corporations including CISCO, Nike, Coca-Cola, Petrobras, Qualcomm, Natura, Audi and Ambev.

Income before income taxes for the six months ended 2016 was $468,465 (1,300,930 Brazilian reals) compared with a net loss of $80,041 (222,273 Brazilian reals) in second quarter 2015.

YDreams Global partnered with CISCO Systems on a recent project developing a smart digital neighbourhood project. Karina Israel, chief operating officer of YDreams, stated: "The company's role is to develop interactive solutions that excel at connecting people with one another and with the city. The integration of Porto Maravilha with the rest of the city, through collaborative technology is the type of challenge that drives YDreams."

The following press release should be read in conjunction with YDreams Brazil's unaudited condensed interim financial statements for the three and six months ended June 30, 2016, and the accompanying notes, and with YDreams Brazil's annual financial statements for the year ended Dec. 31, 2015, prepared in accordance with international financial reporting standards, which can be found on SEDAR.

In other news, the company has granted 500,000 incentive stock options to consultants of the company at an exercise price of 40 cents per share. The incentive stock options will vest over five years and have a five-year term, with 20 per cent vesting one year from the grant date and every 12-month period thereafter. The options have been granted in accordance with the company's rolling stock option plan.

YDreams Global combines virtual reality technology, design and intelligence along with a multidisciplinary team of graphic designers, industrial designers, interior designers, computer engineers, mechanical engineers and electrical engineers, who research and develop proprietary patented technologies in areas such as image processing, augmented reality and gesture-based interfaces. YDreams has developed over 1,000 projects for clients all over the world, such as Adidas, Vodafone, Nokia, TMN, Barclays, Coca-Cola, Santander, BBC, JCDecaux, Nike, CISCO, Mercedes Benz, Audi, Unilever, and Procter and Gamble.