Director Shareholding and Issue of Options

CyanConnode Holdings plc

("CyanConnode" or the "Company")

Director Shareholding and Issue of Options

CyanConnode (AIM:CYAN.L), the world leader in narrowband radio mesh networks, announces that Simon Smith, Chief Financial Officer, has purchased 13,333,333 ordinary shares of 0.01p in the Company ("Ordinary Shares"), at a price of 0.15 pence per share.

This brings Simon Smith's interest in the Company's current issued share capital to 223,967,014 Ordinary Shares, being approximately 1.25 % of the current issued share capital. The total amount invested to date in the Company by Mr Smith has increased from £0.5 million to £0.52 million.

This purchase is following the share purchases last week by John Cronin of £50,000 and Harry Berry of £20,000 and the investment made by all Directors and certain senior managers in the Company over the past 12 months whereby Directors have used 100% of their remuneration to purchase shares in the Company at the July 2016 placing price of 0.18 pence per share. The amount invested by Directors and certain senior managers under this arrangement was £0.7 million, and was in addition to £0.3 million invested by Directors and senior managers in the Placing in July 2016, bringing the amount already invested in CyanConnode shares by the Directors and relevant senior managers over the last twelve months to £1 million.

Simon Smith commented: "As CFO, I would also like to echo the comments that John Cronin and Harry Berry made in the announcements of their £50,000 and £20,000 respective share purchases at the end of last week. Following the $9.3 million contract award extension received for the customer in Bangladesh on June 15th, CyanConnode has won customer orders valued at £19 million, which is on top of the expected £25M revenue from the rollout of the UK smart metering program. Considering the 2016 reported revenue was £1.8 million, these orders provides significant revenue backlog for future periods. We are now becoming a well-established business, with highly competitive solutions which industry leading customers like Tata Power are buying and then re-ordering on a repeat basis. I also viewed the recent share price weakness as an opportunity and have therefore demonstrated my continued commitment and support through this additional share purchase."

Furthermore, pursuant to the CyanConnode Matching Share Plan and following the above purchase, the Company will now grant options over 13,333,333 Ordinary Shares with an exercise price of 0.15 pence per Ordinary Share to Simon Smith. Following this grant, Simon Smith will hold options over 286,764,802 Ordinary Shares.

The announcement on 22 June 2017 stated the incorrect number of options held by John Cronin. The correct figure should be 755,460,781.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them