Peterborough project update

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

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

Peterborough project update

Contracted businesses double in the first half, breaking through 3% market penetration

CityFibre (AIM: CFHL), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, is pleased to provide the following progress update on its Peterborough CORE project.

To date, 126 local businesses have entered into network service contracts with CityFibre's service provider partners, a doubling from the level achieved at the end of 2014. This represents 3.2% penetration of the total addressable business market, and a 12.6% conversion rate from the base of businesses which took part in the pre-registration campaign mounted by CityFibre during network construction.

In addition, the total contract value ('TCV') associated with these 126 business contracts is £1.7m, representing a 43% increase in cumulative TCV on the network asset since the initial public sector anchor contract.

Greg Mesch, Chief Executive of CityFibre, commented:

"Peterborough continues to serve as a compelling example of how a business market underserved by existing network suppliers can be reinvigorated by new gigabit infrastructure which is CityFibre's bread and butter. The continued strong uptake experienced in the first half of the year is testament to the impact of both our pre-registration campaign and our strong relationships with local service providers.

"Our team only broke ground on the project in April 2014, and to find ourselves at 3.2% penetration of the business market in little over a year is a powerful endorsement from the local community of the impact our Peterborough CORE can deliver to the area's economy. This level of penetration also means we've nearly achieved half of our internal five year target within the first year of network operation."

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About CityFibre:

CityFibre enables gigabit connectivity through designing, building, owning, and operating fibre optic network infrastructure. It is the largest independent provider of fibre infrastructure to mid-sized cities and major towns across the UK, providing gigabit-capable infrastructure for enterprise and public sector organisations, service providers, mobile network operators and businesses.

The Group owns and operates 543 route kilometres of local access networks serving 885 customer locations in 60 towns and cities in the UK, including York, Coventry, Peterborough, Huddersfield, Hull, Sheffield, Newcastle, Dundee, Bath, Derby and Doncaster.

To date the Company has launched five Gigabit City projects in York, Peterborough, Coventry, Aberdeen, and Edinburgh, where city-wide pure fibre networks known as 'COREs' bring world-class Internet connectivity and the benefits of gigabit speeds to every aspect of the city's community. The CityFibre COREs are deployed using the Company's Well Planned City (WPC) design philosophy, in which its city-wide core fibre infrastructure is designed with thousand-strand fibre cables in dual ducts optimally routed to serve the present and future demand of the public sector, mobile base stations, business park estates, and ultimately designed to serve as feeder and distribution network for Fibre-to-the- Home deployments.

CityFibre is also a proud member of a joint venture with TalkTalk and Sky. Established in early 2014, the collaboration aims to prove the viability of gigabit speed Fibre-to-the-Premises (FTTP) networks and services for homes and businesses. Work is currently underway to connect tens of thousands of homes and businesses in York to a future-proof FTTP modern digital infrastructure.

CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CFHL).

To find out more, please visit: www.cityfibre.com