Trading Update

Cyan Holdings plc

("Cyan" or "the Company")

Trading Update for the First Half of 2011

Cyan (AIM:CYAN), the integrated system design company delivering mesh based flexible wireless solutions for lighting control, utility metering and industrial telemetry, is pleased to provide the following trading update for the six months ended 30 June 2011.

In the first half of 2011 revenues significantly exceeded revenues for the whole of 2010.

Additionally, Cyan has received a new order for 50,000 units of a legacy product increasing a substantial order backlog. Assuming this backlog of orders, accumulated during the first half of 2011, is delivered within the current financial year, the revenues generated in the second half of this year are likely to be double that shown in the first half and in excess of the total revenues shown in 2009 and 2010 combined.

Kenn Lamb CEO of Cyan Holdings commented:

"I am delighted to be able to report such strong growth in the first half despite the seasonal effects of reduced first quarter trading in China. The revenues and backlog halfway through the year represent the tip of the anticipated growth curve and we expect bookings in the second half to be stronger than those in the first half.

"The backlog represents only the initial orders for initial projects of existing customers, who prefer to place regular orders that match the rate of installation and not a single order for the total opportunity. Whilst we are targeting orders from new customers during the second half of 2011, additionally, we expect significant repeat orders for initial projects from existing customers, as well as new orders from existing customers for new projects. Added to this we expect to enjoy a run of orders from a pipeline of new customers.

"These factors should support a faster rate of growth in the second half than we have experienced during the first half of 2011."

Cyan Holdings plc

Tel: +44 (0) 1954 234 400

Kenn Lamb, CEO

www.cyantechnology.com

Cenkos Securities plc

Tel: +44 (0)20 7397 8900

NOMAD and Joint Broker

Stephen Keys / Adrian Hargrave

XCAP Securities plc

Tel: +44 (0)20 7101 7070

Joint Broker

John Belliss / Parimal Kumar

Hansard Communications

Tel: +44 (0)20 7245 1100

Adam Reynolds / Nicholas Nelson / Guy McDougall