China Telecom Order

Cyan Holdings Plc
03 July 2007


Press Release                                                        3 July 2007


                               Cyan Holdings Plc

                           ('Cyan' or 'the Company')

                    First Production order for China Telecom


Cyan Holdings plc (AIM: CYAN.L) the fabless semiconductor company specialising
in the development of low powered, configurable microcontroller chips is pleased
to announce that it has received the first production order for eCOG1K chips for
a new product being launched by China Telecom.

Cyan's customer has designed a special pay-phone using smartcards which also
acts as a clocking in and out terminal and will be installed in factories
throughout China. The pay-phone will be used by migrant employees working in
factories for calls home to their families. A range of extended features are
already planned for future models of this payphone. China Telecom is the largest
fixed-network service provider in China and has been conducting field trials of
the pay-phone for several months. China Telecom plans to introduce these
pay-phones with a range of financial incentives for factory owners to accelerate
penetration and to maximise market share. Deployment of pay-phones has commenced
in Fujian, Jiangsu and Zhejiang provinces, and will extend to a total of six
provinces across China.

Whilst the initial quantities are modest, less than 10,000 units, these are
scheduled to be delivered monthly representing the first three months of a
production ramp which commences in September.

Kenn Lamb, Chief Executive Officer of Cyan, commented: 'Although initial order
quantities are modest compared to the market opportunity as understood by Cyan's
management, we are encouraged by this first production order following
successful field trials and are working with our customer on the development of
next generation pay-phone systems that offer a greater range of revenue
generation opportunities for China Telecom.'

The Board is confident that the Company is making progress towards the objective
outlined at the AGM of delivering steady and stable growth going forward.  The
Board of Cyan does not believe that the fall in the share price of the Company
in the two months since the AGM reflects that progress. The current market
capitalisation of the Company is, in the opinion of the Board, more appropriate
to a development-stage company that has yet for instance to complete working
silicon. Cyan by contrast has a new microcontroller family being actively
marketed and an existing product which has achieved revenues.  The Board expects
that the Company will be able to announce further developments in the remainder
of this year that will demonstrate the progress that the Company is making.


For further information:
 Cyan Holdings plc
 Kenn Lamb, CEO                                        Tel: [phone]
 Andrew Lee, Finance Director
                                                       www.cyantechnology.com
 Collins Stewart Limited
 Simon Atkinson, Corporate Finance                     Tel: [phone]
                                                       www.collins-stewart.com

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



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