Cyan Joins AIM

Cyan Holdings Plc
07 December 2005


Press Release                                                    7 December 2005



                               Cyan Holdings plc

                           ('Cyan' or 'the Company')

                                 Cyan joins AIM

                          First day of dealings on AIM


Cyan Holdings plc, the fabless semiconductor company specialising in the
development of low powered, configurable microcontroller chips, today announces
Admission and commencement of dealings of its Ordinary shares on AIM. Collins
Stewart is acting as Nominated Adviser and Broker to Cyan. The stock market EPIC
is CYAN.L



Placing Statistics
Placing Price                                                                                                    22p
Number of Ordinary Shares in issue immediately prior to the Placing                                       62,458,476
Number of Placing Shares being issued*                                                                    21,852,273
Estimated net proceeds of the Placing receivable by the Company**                                       3.25 million
Number of Ordinary Shares in issue following the Placing                                                  84,310,749
Percentage of the enlarged ordinary issued share capital available in the Placing                       26 per cent.
Market capitalisation at the Placing Price                                                              18.5 million
ISIN Code                                                                                               GB00B0P66Q02
EPIC                                                                                                          CYAN.L



* Includes 3,701,990 new Ordinary Shares issued pursuant to the exercise of
Warrants and placed by the Company on behalf of Warrant holders to satisfy the
warrant exercise price.

** Excludes the proceeds of the placing of those Placing Shares placed by the
Company on behalf of the Warrant holders to satisfy the warrant exercise price.



Details of the Placing

Cyan is intending to use the monies raised to support the development and launch
of new products, the funding of the expanding sales and product support teams,
and the working capital requirements of the subsequent sales growth.  In
addition the AIM admission will raise the corporate profile of Cyan and as such
further increase customer confidence.



Paul Johnson, Chief Executive Officer of Cyan, commented: 'We are delighted to
see the successful start of dealings in Cyan shares on AIM.  The listing
provides us with a firm launching pad to take the Company on to its next stage.
Having achieved a number of design wins for the first product, AIM should
provide Cyan with the opportunity to expand its product range and exploit the
high-growth semiconductor market in which it operates.  We believe the
combination of our ultra low power flexible microcontrollers and our software
development toolkit sets Cyan apart.



'Cyan has pioneered the idea of the integrated development process of software
support tools in conjunction with the design of the microcontroller.  The result
is a software development tool, CyanIDE(R), which automatically writes the
difficult but necessary configuration software, perfectly matched to the product
range it supports.



'Cyan is a fabless semiconductor company meaning that chip manufacture,
assembly, testing and shipping is completely outsourced, eliminating the need
for manufacturing capital costs.  Therefore we can enjoy very low capital
intensity.'



Paul Johnson, the founding director and CEO of Cyan, gained a Ph.D in
Electronics from Bradford University.  His industrial career started at
Cambridge Consultants Limited where he primarily worked on high-speed analogue
to digital converters, sonar and imaging systems.  Paul went on to found one of
the first Cambridge companies involved in personal computing in the early 1980s.



Paul Johnson is joined on the executive team by Paul Barwick as Sales Director
and Andy Lee as Financial Director.



Dr John Read joins Cyan Technology as non-executive. John brings a wealth of
experience to Cyan, with a career spanning 30 years in the semiconductor
industry.  He began as Director of Engineering in 1973 with US-based Honeywell
Solid State Centre and has since held senior positions at Texas Instruments, STC
Telecommunications, Marconi and latterly as Joint President at GPS Plessey
Semiconductors.



Professor Mike Hughes, Chairman of Cyan, previously of GEC and CEO of Midlands
Electricity PLC, commented on John's appointment:  'I am extremely pleased to
welcome Dr John Read to the Board.  He has considerable experience in the
semiconductor industry, start-ups and PLCs which will be invaluable to our
strategy.  I am very impressed in general with the expertise and capability of
Paul Johnson's team.'



For further information:


Cyan Holdings plc
Paul Johnson, Chief Executive Officer             Tel: [phone]
                                                  www.cyantechnology.com


Collins Stewart Limited
Stephen Keys, Corporate Finance                   Tel:  [phone]
                                                  www.collins-stewart.com



Media enquiries:
Abchurch Communications
Heather Salmond / Tania Wild                      Tel: [phone]
[e-mail]                www.abchurch-group.com



                                    - Ends -

Notes to Editor:

Cyan is an electronics company which specialises in the design, sale and support
of a range of 16-bit and 32-bit general-purpose low power microcontroller chips
('MCUs').  These chips are integral components used in nearly all electronic
products, ranging from mobile phones and washing machines to toys, televisions
and motorcars.  Consumer entertainment markets require more powerful processors
and are usually based on 32-bit chips which Cyan is developing to serve this
market segment.  Cyan is based in Cambridge, UK and, since it operates in a
worldwide market for microcontrollers, has identified Europe and South East Asia
as the largest markets for its products.  As such, Cyan opened a sales and
technical support office in Hong Kong in May 2005.



Originally Cyan was a spin out from Cambridge Consultants Limited to use its
16-bit core, the same core used in CSR's first Bluetooth chips.  Since Cyan was
founded in 2002, it has achieved 75 design wins for its initial eCOG1(R)k
product and is expanding the range of the patent-protected eCOG1(R) family and
introducing a new range of 32 bit microcontrollers.



Cyan has introduced design integration support software, CyanIDE(R), to support
the Company's entire range of current and future microcontrollers.  The software
makes chip integration into customers' products vastly more simple, quick,
reliable and hence less expensive while dramatically reducing development time.
 Cyan created CyanIDE(R) to avoid relying on standard tools from third party
suppliers.



The South East Asian and Chinese markets are becoming increasingly important for
low cost manufacturing. It is also the case that technology design activity is
increasing at a rapid rate. Cyan Asia, which was established in May 2005, is
based in Hong Kong with a general manager and technical support staff to service
the South East Asia market. Cyan is already shipping quantities of its eCOG1 to
a customer based in China and Taiwan. Two country managers and a technical
support team support the European market from Cyan's Cambridge offices and Cyan
is already in the process of shipping quantities of eCOG1 to four European
customers.



Microcontroller chips are general-purpose digital semiconductors used in almost
all electronic products. The first microcontrollers handled 4-bit and 8-bit
words and were generally used to carry out control and signal processing
functions, providing products with 'intelligent' behaviour. These were applied
in diverse industrial control applications, calculators and in domestic
appliances. However, as technology advanced, 4-bit and 8-bit microcontroller
designs were not powerful enough to support the new and increasing amount of
communication protocols required.



During the 1980s, more powerful 16-bit chips were first applied to office
imaging products such as fax machines, copiers and scanners, and automotive
engine management and diverse industrial control applications. Consumer
entertainment markets now require more powerful processors and are increasingly
based on 32-bit chips which have been developed to serve this market segment. In
applications such as digital communications products, where the product
specifications may change frequently, manufacturers prefer to use a
microcontroller equipped with a program memory that can be altered at a late
stage in production or even after the point of sale, yet will retain the program
even with the power switched off. Microcontrollers built with embedded 'flash
memory' offer this characteristic and attract higher prices.



The market for semiconductors is competitive and often the decision as to which
MCU to use in a product is taken by a customer's design engineer who will have
regard to both hardware and software issues. There are a variety of criteria
upon which the customer will make its decision, including the cost of materials,
cost of manufacturing and time to market. For some applications there may also
be a 'power budget', with the finished product not to consume more than a
certain amount of power due to either heat or cooling problems or to battery
life or to minimise the cost of the power supplies for the complete product.


                      This information is provided by RNS
            The company news service from the London Stock Exchange