Framework Supply Agreement with Eaga Heating Ltd

VPhase plc

("VPhase" or the "Company")

Framework Supply Agreement between VPhase and Eaga Heating Services Limited

VPhase plc, (AIM:VPHA), a leading developer of energy saving products for residential and commercial properties, is pleased to announce that its subsidiary, VPhase Smart Energy Limited, has today signed an agreement with Eaga Heating Services Limited, a subsidiary of Eaga plc, for the nationwide supply of the VPhase VX1 energy saving device.

The agreement, with one of Europe's fastest growing suppliers of renewable energy systems and related services (LSE: EAGA), runs for a minimum of three years and targets sales of more than 5,000 units per annum.

Rick Smith Chief Executive Officer of VPhase commented: "I am delighted to be working with Eaga. As noted at our interim results in September, the establishment of framework agreements with key players like Eaga is core to the rapid deployment of VPhase's low cost, simple to install, 'fit and save' voltage optimisation unit. The announcement is particularly timely given our TV advertising campaign that commences on Christmas Eve in the Granada region."

Rob Bailey of Eaga Heating Services Limited commented: "The VPhase VX1 is an ideal product to complement our current domestic energy saving residential offerings. Having an affordable ground-breaking product such as the VPhase VX1 will help to offset concerns with rising fuel prices and reduce carbon emissions. We look forward to a close working relationship with our partners at VPhase."

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Notes to Editors:

VPhase plc provides a product that reduces the energy consumption of many domestic electrical appliances.

The Company has developed a Voltage Optimisation product designed to be attached to the consumer unit (fuse box) in order to control the incoming voltage for selected circuits to a target set point of 220 volts. This is slightly higher than the minimum design point for electrical items in Europe, thereby ensuring that electrical appliances in the home operate closer to the voltage condition for which they were designed.

Independently verified tests by VPhase have demonstrated that the product can typically save around 10% of the electricity across a range of domestic products including fridges, freezers, central heating pumps, televisions and other items, even 'energy-saving' light bulbs. This should equate to savings for the typical homeowner of between £40 and £135 per annum.

In addition, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs, in particular, have demonstrated at least two times longer life when on a circuit managed by the Voltage Optimisation product as compared to those without the product.

www.vphase.co.uk