Cityfibre Regulatory News (CITY)

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

('CityFibre' or the 'Group' or the 'Company')

Edinburgh PSN contract award

Edinburgh becomes UK's largest pure fibre city roll-out with a long term network extension deal with CityFibre and Commsworld reaching 300 new council sites

CityFibre (AIM: CFHL), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, is pleased to announce an extension of its existing Gigabit City project in Edinburgh to an additional 294 council-owned sites in an agreement worth at least £5.6 million.

The seven-year deal, with options to extend to a maximum of 19 years and a lifetime contract value of £16m, will be carried out in conjunction with national telecommunications provider Commsworld. It will replace the expensive, capacity-constrained copper circuits provided as part of a long-term contract by BT. The deal represents CityFibre's largest contract win to date and is one of the largest metro UK public services network awards in recent years.

On the basis of the initial seven-year term, this deal now takes total contract value (TCV) added in the current financial year to £15m, though on the full 19-year term of the deal this figure would exceed £25m. CityFibre added £11.1m in new contract value in financial year 2014. The TCV-to-capex ratio for the new contract is anticipated to be within previously stated guidelines.

The contract is part of a wider £186 million outsourced ICT procurement for the council won by global ICT firm CGI, which will create the single largest pure fibre city roll-out in the UK. The 100km network extension will future-proof one of the UK's largest unitary local authorities and will expand the 50km 'Edinburgh CORE' anchor network project delivered in partnership with Commsworld.

On completion in 12 months' time, the total number of connected buildings on the network will exceed 500. Existing construction teams already deployed on the Edinburgh CORE will ensure the roll out is dramatically accelerated and available to even more public sector, businesses and mobile cell sites. It is also designed to function as a backbone for any future deployment of fibre to the home connectivity.

Key sites to benefit from CityFibre's investment will include council offices, community centres and libraries. 137 primary and secondary schools will also benefit from increased bandwidth, up to 50-100 times faster. Edinburgh's 17,000 businesses also stand to benefit as the network grows to areas like The Gyle, which was not included in the first phase city-centre roll-out.

Greg Mesch, Chief Executive of CityFibre, commented:

"This is CityFibre's largest contract to date and in such a prestigious city as Edinburgh, it is a landmark in our growth as a firm. In a matter of months, CityFibre's partnership with Commsworld has begun a truly transformational infrastructure project in the city, and as the world's bandwidth consumption is set to triple in the next four years, Edinburgh is in an advantageous position to capitalise on the continued shift towards a digital economy.

"This contract solidifies the power of our Gigabit City model and the appetite from city leaders to embrace a new generation of infrastructure. We are now a true infrastructure alternative to BT Openreach."

Ricky Nicol, Chief Executive of Commsworld, commented:

"The reach and benefits of this network will have a hugely positive impact on Edinburgh as a whole but this would not be possible without CityFibre's investment in the fibre infrastructure that will allow Edinburgh to become one of the best connected cities in the world. Since we launched the Edinburgh CORE network together in May we have seen huge demand from businesses across all sectors and it is now set to be the biggest gigabit city project in the UK."

Cllr Alasdair Rankin, Convener of the Finance and Resources Committee, Edinburgh Council, added:

"In signing this contract we will transform the way we do business. One of the exciting things CGI will do through its chosen partners, including CityFibre and Commsworld, is speed up our move to greater online capability giving residents and businesses greater flexibility to engage with the Council and carry out their transactions digitally. This will make us a more efficient and effective organisation across our wide range of Council services."

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About CityFibre:

CityFibre enables gigabit connectivity through designing, building, owning, and operating fibre optic network infrastructure. It is the largest independent provider of fibre infrastructure to mid-sized cities and major towns across the UK, providing gigabit-capable infrastructure for enterprise and public sector organisations, service providers, mobile network operators and businesses.

The Group owns and operates 543 route kilometres of local access networks serving 885 customer locations in 61 towns and cities in the UK, including York, Coventry, Peterborough, Huddersfield, Aberdeen, Bournemouth, Hull, Sheffield, Newcastle, Dundee, Bath, Derby and Doncaster.

To date the Company has launched five Gigabit City projects in York, Peterborough, Coventry, Aberdeen, and Edinburgh, where city-wide pure fibre networks known as 'COREs' bring world-class Internet connectivity and the benefits of gigabit speeds to every aspect of the city's community. The CityFibre COREs are deployed using the Company's Well Planned City (WPC) design philosophy, in which its city-wide core fibre infrastructure is designed with thousand-strand fibre cables in dual ducts optimally routed to serve the present and future demand of the public sector, mobile base stations, business park estates, and ultimately designed to serve as feeder and distribution network for Fibre-to-the- Home deployments.

CityFibre is also a proud member of a joint venture with TalkTalk and Sky. Established in early 2014, the collaboration aims to prove the viability of gigabit speed Fibre-to-the-Premises (FTTP) networks and services for homes and businesses. Work is currently underway to connect tens of thousands of homes and businesses in York to a future-proof FTTP modern digital infrastructure.

CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CFHL).

To find out more, please visit: www.cityfibre.com