CSFG.L Regulatory News (CSFG)

CSF Group plc

("CSF" or the "Company")

New Tenancy Agreement and Trading Update

CSF Group plc (AIM: CSFG), a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia, today announces that it has entered into a tenancy agreement for Block A of its CX5 data centre. The Company also announces a trading update.

Tenancy Agreement

The Company is pleased to announce that it has entered into a tenancy agreement, subject to the satisfaction of certain conditions, with Masterplan MyCenter Sdn Bhd ("MMC") for the rental of the entire Block A of the CX5 data centre measuring 67,000 sq ft for a period of three years at rates that are in line with market expectation.

MMC, an existing tenant of the CX2 data centre, was established by the founder of the Masterplan Consulting Sdn Bhd ("MCSB") group which is a supplier of information and communications technology equipment and solutions including data centre equipment and services focusing on the security and defence sector. MCSB has undertaken projects for various ministries and agencies of the Malaysian government including the Ministry of Defence, the Ministry of Home Affairs, the Royal Malaysian Police and the Ministry of Education. MCSB was appointed by the Ministry of Defence to develop and manage the first defence and security technology park in South East Asia.

The lease rental cost payable by CSF for Block A covers the office building and the data centre building structures and general infrastructure for Blocks B and C. Due to the upfront associated costs of the office building and Blocks B and C, the contribution from CX5 is expected to be minimal for the financial periods up to March 2013. The Board continues to expect the overall profit contribution of CX5 to be significant once new tenants are secured for Blocks B and C.

Trading Update

The Board today confirms that Group revenue and profits are broadly in line with expectations*. The Company expects the business mix for gross profit to be approximately 30 per cent. rental and maintenance and 70 per cent. design and development. The Board remains confident that rental and maintenance revenue will continue to grow in absolute terms and as a proportion of Group profits in future financial periods.

The Group continues to pursue new data centre development opportunities and the directors remain confident of the longer term returns that will be generated from the Company's strategy.

* before any adjustments for exchange rates movements

Adrian Yong, CEO of CSF Group, commented:

"In spite of the challenging global business and economic environment, we believe that our business model continues to be attractive and that our growth strategy will in turn benefit shareholders. The Company is focused on securing new tenants for Blocks B and C of CX5 in order to benefit from the operational gearing within the Group and working on CX6 and beyond. The Group is financially sound, cash generative and dividend paying. We are continuously improving our business processes and look forward to the longer term with confidence."

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About CSF Group

CSF Group (AIM: CSFG) is a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia with 35% market share. The Group was established in 1991 and has been involved in the build and fit out of over 200 data centres. Although its primary focus is the design, development and operation of data centres it also develops data centres on behalf of third party customers. Its customer base comprises global blue chip IT, Telco and Industrial companies to whom it offers a range of highly flexible, scalable services.

The Group also operates its own commercial sized purpose-built data centres and currently has approximately 205,000 sq ft of net data centre space which is already fully occupied. The Group recently launched a new data centre in Malaysia known as CX5 which adds 201,000 sq ft of data centre capacity. In line with its regional growth strategy, the Group also expanded its operations to Jakarta, Indonesia on a joint-venture basis with an Indonesian company to operate a state-of-the-art data centre of approximately 120,000 sq ft in Jakarta, Indonesia known as CX Jakarta ("CXJ"). With the inclusion of CXJ and CX4 (a 3,500 sq ft data centre in Hanoi, Vietnam), the Group's total data centre capacity now stands at more than 525,000 sq ft.

The Group was listed on AIM, London Stock Exchange on 22 March 2010.