Governance

Whilst companies whose shares are listed on AIM are not formally required to comply with the Combined Code, the Board supports the Code and applies it in so far as is practicable and appropriate for a public company of its size.The Board is committed to ensuring that high standards of corporate governance are maintained.

There is a clear division of responsibility between the Chairman and the Chief Executive. At 31 December 2007 the Board comprised three Directors, one of whom was an independent Non-Executive Director.The Non-Executive Director does not have any day-to-day involvement in the running of the business.The Board announced on 5 February 2008 the appointment of Mr David Gutteridge as a second independent Non- Executive Director.The Board is responsible for overall strategy, the policy and decision making framework in which this strategy is implemented, approval of budgets, monitoring performance, and risk management.The Board meets at regular scheduled intervals and follows a formal agenda; it also meets as and when required.

The Directors may take independent professional advice at the Company's expense.

Board Committees

The Company has an Audit Committee and a Remuneration Committee each consisting of both of the Non-Executive Directors.

Relationships with Shareholders

The Board understands the need for clear communications with its shareholders. In addition to presentations after publication of results and the Annual General Meeting, meetings are held with fund managers, analysts, and institutional investors. Information is posted on the Company's web site,www.cyantechnology.com, which contains a comprehensive Investor Relations section.