Follow-on order for Indian smart metering contract

Cyan Holdings plc
("Cyan" or the "Company")

Follow-on order for smart metering contract in India

Larsen & Toubro place follow-on order for 5,000 smart meters at Tata Power Mumbai

Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces a follow-on order for a further 5,000 meters from Larsen & Toubro ("L&T") to expand the deployment of Cyan's smart metering solution at Tata Power Mumbai ("Tata Power").

This second order from L&T, for Cyan's CyLec Advanced Metering Infrastructure ("AMI") solution, follows the successful implementation of 5,000 consumer smart meters in Mumbai, announced by Tata Power in July 2015: http://www.tata.com/media/releasesinside/-Tata-Power-commissions-one-of-the-largest-radio-frequency-metering-projects-in-India 

The follow-on contract is to provide a complete AMI solution for the deployment of 4,000 single phase consumer meters and 1,000 three phase meters for high use consumers and light industrial customers. The order will be delivered to Tata Power over the coming weeks. Furthermore, due to the investment the Company has already made in training Tata Power staff to install smart meters and operate the Cyan AMI solution, delivery of this follow on order can be achieved without on-site assistance from Cyan staff, demonstrating the scalability of its business model.

Discussions have now commenced with Tata Power regarding a Framework Order to meet their future needs over a multi-year period.

John Cronin, Executive Chairman of Cyan, commented, "We are delighted to have a follow-on order from L&T, providing a clear signal to customers, partners and shareholders that Cyan's AMI communications platform is ideally suited for emerging market technical requirements as well as reconfirming our leadership position in the India smart metering market. Tata Power is pioneering initiatives in the generation and transmission of electricity and the success of this project has provided Cyan with a strong customer reference for opportunities in India.

"Cyan's communication platform is an enabling technology, delivered through a collaborative engagement model.  Our eco-system of partners supports the transfer of skills to facilitate customer ownership, demonstrating a scalable business model.

"I would like to thank Tata Power and Cyan's partners, L&T and NeoSilica, for their valuable contribution and look forward to their continued support to successfully deploy the next phase of this project."

Mr. Ashok Sethi, COO & ED, Tata Power, commented, "Tata Power is committed to providing its customers with affordable, clean and abundant power. Cyan's CyLec smart metering technology provides data to enable Tata Power to distribute power more efficiently, improving the reliability of the customer's power supply and optimising peak power demand management. CyLec also provides customers with hourly usage patterns, empowering them to consume energy efficiently and reduce monthly bills."

Currently, Mumbai is experiencing unprecedented growth, augmenting the demand for sustainable power. This is reflected in the growth of Tata Power's consumer base which has increased by 50%, from 400,000 in 2014 to over 600,000 consumers today. Tata Power is India's largest integrated power company with a growing international presence.

Cyan's technology has been developed to address the requirements of utilities in emerging economies, of which India is one of the leaders; India has a growing population and 300 million without power¹. According to a report from Northeast Group, the Indian government will spend $21.6 billion² on smart grid infrastructure over the period 2015-2025. In November 2015³, the India Ministry of Power announced a program to implement smart metering for all consumers serviced by state distribution companies with completion deadlines ranging from December 2017 for high power usage households through to December 2019 for the remainder. This will be financed via the States taking over 75% of existing State power distribution company debt (through the issuance of new 10 year bonds) together with an arrangement for the States to take over future losses of the distribution companies. At present, India has 200 million legacy meters deployed and it is estimated 130 million smart meters will be installed by 2021⁴. Cyan's business model is designed to support an organic approach to smart metering rollouts, from initial deployments in thousands to millions of end points, through incremental instalments. This staged approach allows its customers to realise the benefits of Cyan's technology and create the basis to expand the scale of their deployments in line with their needs and business cases.

¹Source: http://www.hindustantimes.com/analysis/turn-the-light-on-innovation-and-investment/article1-1260113.aspx

²Source: http://www.prnewswire.com/news-releases/india-to-spend-216-billion-on-smart-grid-infrastructure-by-2025-300021970.html

³Source: http://powermin.nic.in/upload/pdf/Uday_Ujjawal_Scheme_for_Operational_and_financial_Turnaround_of_power_distribution_companies.pdf

⁴Source: http://asian-power.com/sites/default/files/asianpower/print/APMay_2013_lr_12.pdf

Enquiries:

About Cyan

Cyan provides a communication platform for energy, lighting and emerging applications in the wider 'Internet of Things' network. Its integrated platform and partner collaborations deliver end-to-end solutions that connect millions of devices and support bidirectional communication with the end customer. Cyan's smart metering and lighting solutions enhance quality of service in emerging regions, through power savings, lower operating costs and increased cost efficiency. Our vision to create improved value through Smart City solutions has provided our customers with the foundation upon which to build incremental services as these markets evolve.

For more information, please visit www.cyantechnology.com.

About CyLec®

CyLec is a complete control and communication network for electricity metering. CyLec uses wireless technology to enable the collection and delivery of data from and to a meter, such as energy profiles, instant readings and the sending of tariff updates. Priority data can also be sent back to the utilities such as information regarding tampering enabling the utility to take action immediately.

About Tata Power

Tata Power is India's largest integrated power company with a growing international presence. The Company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of [8669] MW and a presence in all the segments of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India namely "Tata Power Delhi Distribution Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. Tata Power has developed the country's first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. It is also one of the largest renewable energy players in India. Its international presence includes strategic investments in Indonesia through a 30% stake in the leading coal company PT Kaltim Prima Coal (KPC), 26% stake in mines at PT Baramulti Suksessarana Tbk ("BSSR") and a geothermal project; in Singapore through Trust Energy Resources to securitise coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called 'Cennergi' to develop projects in South Africa, Botswana and Namibia; in Australia through investments in enhanced geothermal and clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan. With its track record of technology leadership, project execution excellence, world class safety processes, customer care and driving green initiatives, Tata Power is poised for a multi-fold growth and committed to 'lighting up lives' for generations to come. Visit us at: www.tatapower.com

About Larsen & Toubro

Larsen & Toubro is a USD 15 billion technology, engineering, construction, projects, manufacturing and financial services conglomerate, with global operations.

The company is engaged in core, high-impact sectors - infrastructure, construction, defence, hydrocarbon, heavy engineering, power, aerospace, shipbuilding, electrical & automation, mining and metallurgy. Its integrated capabilities span the entire spectrum of 'design-to-deliver', and it offers turnkey EPC solutions in its major business lines. Its track record covers products, projects and processes executed to international benchmarks.

Electrical & Automation is a major business portfolio of Larsen & Toubro. The business basket of Electrical & Automation (E&A) contains low and medium voltage switchgear products, electrical systems, energy meters and automation solutions. Its products and solutions cater to industry, utility, building & home, infrastructure and agriculture segments.

About NeoSilica

NeoSilica specializes in global Energy markets - making and deploying Green IT products and solutions, for - a) Utilities (Smart Grid: Meter Data Management System, MDAS, ADR), b) Buildings (Grid Responsive BEMS/BMS) and c) Solar Plants (SCADA & Remote Monitoring with SLDC Integration). NeoSilica's Smart Grid solutions use enterprise-scale architectures, built on secure and scalable M2M (Machine to Machine) Platform and Cloud-based Solutions supported by Big Data Analytics - all developed internally. Using field proven technologies, NeoSilica caters to wide range of applications for energy and water conservation from microgrids to smart cities. More details on www.neosilica.com.