First capacity deal on acquired long-haul network

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

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

First capacity deal on acquired long-haul network

CityFibre (AIM: CITY), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, today announces the first sale of dark fibre capacity on its 1,100 kilometre national long distance network acquired from KCOM Group plc in January 2016.

The 15-year agreement, with Total Contract Value of £2.3m, is with leading national service provider SSE Enterprise Telecoms, and covers a 48 kilometre stretch of network between Reading and Slough. The transaction is structured as an indefeasible right of use (IRU), and thus the majority of the proceeds are received up front, with a small annual recurring charge over the remainder of the contract term.

CityFibre's acquired national long distance network (LDN) totals approximately 1,100 route kilometres, connecting 22 towns and cities. It offers connectivity into key data centres and wholesale internet peering points in London and regional internet hubs, allowing CityFibre to offer true end-to-end wholesale dark fibre connectivity solutions to service providers, datacentres, and mobile operators.

The deal establishes a powerful new trading relationship between the businesses and reinforces the commercial relevance and revenue generating capabilities of the LDN less than 90 days since its acquisition.

Greg Mesch, Chief Executive of CityFibre, commented:

"We're very excited to add SSE Enterprise Telecoms to our growing list of national service provider customers. This contract also demonstrates the pent-up demand for intercity dark fibre connectivity across our acquired national long distance backbone, and we're pleased to already be commercialising this valuable asset. This is our fourth deal signed on the acquired assets in the less than three months that we have owned them, following sales of 450 connections on the acquired metro networks in Bristol, Leeds and Bradford."

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About CityFibre:

CityFibre is the national builder of Gigabit Cities, as the UK's largest alternative provider of wholesale fibre network infrastructure. It has major metro duct and fibre footprints in 37 cities across the UK and a national long distance network that connects these cities to major data-centres across the UK and to key peering points in London.

The company has an extensive customer base spanning service integrators, enterprise and consumer service providers and mobile operators. Providing a portfolio of active and dark fibre services, CityFibre's networks address 26,000 public sites, 7,400 mobile masts, 260,000 businesses and 3.7 million homes.

CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CITY). Further information on the company can be found at www.cityfibre.com