Memorandum of Understanding a

RNS Number : 1912A

Cyan Holdings Plc

27 January 2011

 



Cyan plc

("Cyan" or "the Company")

Signature of Memorandum of Understanding and Trading Update

Cyan (AIM:CYAN), the integrated system design company delivering mesh based flexible wireless solutions for lighting control, utility metering and industrial telemetry, is pleased to announce that the Company has signed a Memorandum of Understanding to implement a partnership with a large manufacturing company in India that has developed a sophisticated web based city lighting control system for a contract to replace 375,000 streetlights in one city. The partnership agreement gives the customer access to Cyan server control technology on condition of use of Cyan lighting control products and the active marketing of the combined solution to other cities. An initial order for 1,000 units has been received to set up a demonstration facility of the combined lighting control system.

The Company is also pleased to provide the following trading update for the year ended 31 December 2010.In the second half of 2010 Cyan, announced orders for tens of thousands of street lighting controllers, each for initial projects with future requirements for hundreds of thousands of units. These orders and customers represent a small proportion of Cyan's current active lighting-customer engagements, which in turn represents a fraction of the emerging global street light replacement market.

During 2010, Cyan shipped tens of thousands of units to wireless utility metering customers around the world. Most of these units were installed into large-scale trials. In the second half of 2010 a number of customers indicated to the Company that they were bidding for tenders of substantial quantity, and already in 2011 Cyan is aware of two new tenders for in excess of one million units.

Cyan has developed technology and products that deliver cost effective ready-to-deploy solutions. These allow established lighting and utility metering manufacturers to easily enhance their products to support remotely managed wireless networks of street-lights or utility-meters. There is substantial growing global demand for such wireless management networks and in recent years Cyan has made significant investment and has gained extensive expertise in designing, manufacturing and deploying such networks.

Cyan has evolved from developing and supplying just the wireless communication components, to providing complete system solutions, so much so that the Company is now better described as an integrated system design company.

As such Cyan has attracted the attention of major organizations in different countries, including government departments that are tasked to specify the next generation of wireless utility metering for their countries. One such organization, as part of a technology and supplier evaluation program, has recently informed Cyan that its current gas metering products have 'solid technology that already meets 99% of their requirement'. The Directors of Cyan are optimistic that they will soon be able to announce that the conclusion to this program has been the selection of Cyan as the partner for the next five to ten years, which could establish Cyan as the dominant wireless gas meter AMR technology supplier in that country.

In another region, Cyan has recently succeeded in initiating a program of engagement directly with a number of utility companies and influential government departments, who propose to define the requirements for their next generation wireless electricity meters. Cyan is supported by a number of established meter manufacturers who have already adopted and incorporated Cyan products into their own wireless electricity meters, and wish to see Cyan's mesh technology incorporated into any new national standard.

At the start of 2010 Cyan was well positioned with a number of lighting and utility meter manufacturers in multiple countries. At the beginning of 2011 Cyan's position has been considerably strengthened with a number of leading organisations that either specify or influence the choice of wireless lighting and utility metering technology. This is in part the result of becoming a fully integrated system design business and the efforts and increased reputation of the Company within these regions.

Outlook

The recent years of research and development have put Cyan at the forefront of wireless mesh networking technology for street-lighting control and utility metering, and the Directors are delighted with the progress the Company has made and in particular over the past six months. With our recently strengthened balance sheet, we are very confident for the outlook of the business during 2011 and beyond and look forward to reporting further progress to shareholders in due course.

www.cyantechnology.com

Enquiries:

Cyan Holdings plc Kenn Lamb CEO	Tel: [phone]
Cenkos Securities plc Stephen Keys / Adrian Hargrave	Tel: [phone]
Hansard Communications Adam Reynolds / Guy McDougall	Tel: [phone]

 

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