RNS Number:1538B
Cyan Holdings Plc
31 July 2007


Press release                                                       31 July 2007


                               Cyan Holdings Plc

                           ("Cyan" or "the Company")

              Placing of new Ordinary Shares to raise #5.3 million

Cyan Holdings Plc (AIM:CYAN.L), the fabless semiconductor company specialising
in the development of low powered, configurable microcontroller chips, is
pleased to announce that, subject to shareholder approval, it has raised 
#5.3 million (before expenses) by way of two share placings ("Placings") of
53,300,000 new Ordinary Shares at 10 pence per share.

The proceeds of the Placings will be used to provide working capital and enable
the Company to:

*   pursue the strategy for penetration in the Chinese domestic market, which 
    the Board believes represents a significant opportunity for the Company

*   develop a new entry-level chip for the Chinese market, utilising the 
    Company's knowledge of this region and their requirements

*   increase the Company's presence in Europe, building on existing 
    relationships

*   continue to develop relationships with new partners to fully realise Cyan's 
    potential in the European, Chinese and American markets


Kenn Lamb, CEO of Cyan, said:  "We are delighted with the support demonstrated
by new and existing shareholders and we are excited about building on the new
strategy outlined at the AGM in April 2007.  I came on board with an 18 month
strategy.  Having clearly identified the markets most important to our
development, the funds will enable us to fully execute this new strategy.  Since
April, the Cyan team has achieved several new partnerships and the Placings
allow us to further build on these successes and pursue a number of additional
partnership opportunities.

"We anticipate that early shipments for China will be in the first half of next
year, and that this will be followed by accelerating sales in the second half of
next year, which the Board anticipates will include some volume shipments.

"There is a massive opportunity to increase market penetration and following a
period of change for good, we are focusing on increasing the Company's market
penetration and growth, initially concentrating on the Chinese and European
markets. We look forward to actioning this strategy and further realising Cyan's
potential."


For further information:
Cyan Holdings plc
Kenn Lamb, CEO                                         Tel: +44 (0) 1954 234 400
Andrew Lee, Finance Director
                                                          www.cyantechnology.com
Collins Stewart Europe Limited
Chris Howard/Oliver Quarmby                            Tel: +44 (0) 20 7523 8350
Corporate Finance
                                                         www.collins-stewart.com

Media enquiries:
Abchurch Communications
Heather Salmond/ Franziska Boehnke                     Tel: +44 (0) 20 7398 7700
franziska.boehnke@abchurch-group.com                      www.abchurch-group.com


Application has been made to the London Stock Exchange for the new ordinary
shares to be issued pursuant to the Placings to be admitted to trading on AIM 
("Admission").  It is expected that Admission will become effective and that
dealings will commence at 8.00 a.m. on 28 August 2007 in respect of 15,800,000
new ordinary shares to be issued to VCT and EIS investors and at 8.00 a.m. on 29
August 2007 in respect of 37,500,000 new ordinary shares to be issued to Non-VCT
and Non-EIS investors.

The Placings are conditional, inter alia, upon: (a) the approval, without
amendment, of the resolutions to be proposed at the EGM to be held on 24 August
2007 at 11.00 a.m. at Dechert LLP, 160 Queen Victoria Street, London, EC4V 4QQ;
(b) the Placing Agreement becoming unconditional in all respects and not having
been terminated; and (c) Admission.

The new ordinary shares are to be issued pursuant to the Placings will, when
issued and fully paid, rank pari passu in all respects with the existing
ordinary shares of Cyan and will be issued subject to the memorandum and
articles of association of Cyan.

Notes to Editors

The proceeds of the Placings will fund Cyan's working capital requirements and
allow the Company to continue to build on its strategy to penetrate the markets
which it has identified to be integral to Cyan's growth. Since Kenn Lamb's
appointment in April 2007, the strategic review which he carried out as a
consultant prior to his appointment as CEO has been put into action, and his
aggressive and achievable strategy is now being implemented.  The Company is
actively pursuing new l partnerships in order to strengthen its presence in the
three markets of Europe, China and the United States.

The Company's focus is initially on Europe, where it is working with partners to
develop module products that incorporate the Cyan chip with other components,
and which can be further modified by end customers using Cyan software tools.
The opportunities in the Chinese domestic market are also a continued focus for
the Board. The development of an entry-level chip for this market, in
consultation with Cyan's Hong Kong office will offer enhanced functionality at
minimal additional cost, which through extensive research, the Company has
identified as crucial factors in its customers' decision making.  In addition,
Cyan anticipates that it will be in a position to market its products in the US
in 2008.



                                    - Ends -




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCIFFLLDIIIVID
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Cyanconnode Charts.
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Cyanconnode Charts.