New partners for Leeds and Bradford networks

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

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

New partners for acquired Leeds and Bradford networks

Further commercialisation of acquired metro assets, with 450 circuits having been sold in under 90 days since transaction close

CityFibre (AIM: CITY), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, is pleased to announce contract signings with two new service providers on its Leeds and Bradford networks acquired from KCOM Group plc in January 2016.

The two partners are Exa Networks ('Exa'), a Bradford-based specialist in connectivity provision to both the education and business sectors, and Leeds-based Diva Telecom ('Diva'), an established business-to-business telecoms provider.

The two deals carry a combined minimum Total Contract Value ('TCV') of £4.9m over six-year terms:

· Exa is committing to a minimum of 250 connections focusing on the Bradford area, as well as two diverse circuits over the acquired long distance network connecting the city to Leeds, for TCV of £3.5m.

· Diva Telecom is committing to a minimum of 100 connections in Leeds, for a TCV of £1.4m.

With a combined duct route length of approximately 190 kilometres, CityFibre's Leeds and Bradford networks are amongst the larger assets acquired in the January transaction, providing Exa and Diva with dense coverage of one of the largest metro areas outside London, to deliver superior gigabit connectivity to area schools and businesses at a lower cost and with faster time to market.

TCV-to-capex coverage for these contracts is in excess of guidance given previously, as network provisioning to fulfill the contracts heavily utilises the existing acquired assets.

In addition to today's contract, Exa has agreed a strategic national partnership with CityFibre targeting the UK's education sector. Exa already serves thousands of schools and colleges across the country with market-leading connectivity and IT security services. The partnership will support Exa as it targets educational institutions across CityFibre's national network footprint, transforming their digital capabilities with future-proof pure fibre connectivity.

Following shortly after the 100-site contract in Bristol with Triangle Networks announced in January, today's agreements bring the total of new connections sold on the acquired metro footprints to 450 in less than 90 days since the transaction closed.

Greg Mesch, Chief Executive of CityFibre, commented:

"Commercialising our national network assets is a key strategic focus for us, and so we are very pleased to be adding two new key partners on our Leeds and Bradford networks. Exa and Diva are both highly commercial organisations with great local market knowledge and a hard-earned reputation for delivering value to their customers. Our combined route length of 190 kilometres of ducted fibre in Leeds and Bradford gives Exa and Diva great coverage of their target markets with a differentiated product offering, bringing much-needed enhancement to connectivity in the business and public sector estates and stimulating the local economy. This is the beginning of our journey together.

"I'm delighted that these agreements continue to demonstrate CityFibre's ability to rapidly commercialise the assets we acquired in January. Since the acquisition we have contracted commitment of 450 new sites in less than 90 days, underlining the importance to the market of an alternative infrastructure provider to BT Openreach."

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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