EAS.L Regulatory News (EAS)

Energy Assets Group plc

("Energy Assets" or the "Group")

New contract to deploy British Gas Business' advanced meter strategy

Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK[i], is pleased to announce that it has signed a strategic agreement with British Gas Business (BGB) to install advanced meters for around 50% of BGB's I&C customers across the UK.

At 31 March 2014, Energy Assets had invested £78m in a gas metering portfolio of circa 101,000 assets which generated 63% of its total recurring revenue for the year then ended of £16.9m. The BGB meters will have a 20 year contracted term which allows for an annual RPI price adjustment and provides opportunity for significant future growth to the Energy Assets long-term recurring revenue portfolio.

Energy Assets has already played a significant part in the delivery of BGB's advanced meter strategy. As part of a joint commitment to work with global meter manufacturer Elster, an absolute encoder rotary meter has been developed which is to be deployed as part of the project. The Energy Assets technical team have also worked alongside Elster providing field and application support, playing a significant role in the development of a new advanced diaphragm meter that incorporates technology providing remote communication of consumption data. The resulting product is the primary technology to be deployed across the whole of BGB's I&C customer portfolio.

As part of the deployment, Energy Assets will undertake all project management activity and provide a web based customer interface via its innovative "TEAMS" project management platform, which is currently the most sophisticated of its kind in the market place. The visibility and control that is delivered through the industry-unique end to end electronic data, asset management, audit and control platform was a key element of the award process. The "TEAMS" system will enable both BGB and its customers to have full project visibility, ensuring communication is clear and proactive and the necessity for customer to supplier interaction is minimised.

Phil Bellamy-Lee, Chief Executive of Energy Assets, commented:

"Energy Assets remains at the forefront of operational and technological innovation. We have built a strong reputation in the industry for quality, competency and excellent service all of which are underpinned by our market leading IT systems which provide real time updates on project management, information flow and asset management. The fact that our systems and processes will form part of a strategic roll out of advanced metering by BGB is testimony to this reputation.

To ensure continued improvement, we have assembled an internal team of highly skilled direct labour engineers over the last 24 months. The Group has also opened a central UK operational hub based in Sheffield to continue supporting existing customers and to deliver project support for the BGB installation program.

This is a significant step in the achievement of the Energy Assets growth strategy and is testament to the relationships we have developed with both BGB and Elster."

Matt Idle, Director of Customer Operations, British Gas, commented:

"Since 2008 we have made significant efforts to ensure that all of our customers could benefit from advanced metering, and this agreement is the next step in this journey. The meters provided by Elster and Energy Assets will enable our business customers to benefit from innovative technology, which will make it easier for them to control and reduce their energy costs."

Energy Assets will release an Interim Management Statement, covering the period from 1 April 2014, on Monday 28 July 2014.

Enquiries

For further information visit www.energyassets.co.uk or contact:

Notes to Editors:

About Energy Assets

Energy Assets provides metering and related services in the I&C segment of the UK utility market and is the largest independent provider of I&C gas metering services in the UK[i]. The Group offers utility suppliers and end-user consumers of energy a broad spectrum of metering services from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related infrastructure works and the collection and provision of consumption data through the Group's Siteworks and AMR divisions.

Energy Assets is listed on the Main Market of the London Stock Exchange.