CTP.L Regulatory News (CTP)

24th February 2011

Redstone plc

("Redstone" or "The Company")

Restructuring Completed

At the time of the Interim Results on 17th December, the Company described what action had been taken to restructure the business since September 2010, following the appointment of Ian Smith as Chairman and Tony Weaver as Chief Executive. The board set an objective to re-position the Company as a more focussed, higher margin business with reduced gearing. The Company would therefore be better positioned to deliver network based end-to-end managed services, technology and infrastructure solutions.

As explained in the Chairman's statement, following the restructuring process the residual businesses comprise predominately all the activities of Redstone Converged Solutions together with the connectivity and managed services activities of Redstone Managed Solutions and the recently acquired Fujin Systems business.

Moreover, the Board announced that it had commenced the final phase of the restructuring to consolidate all activities into a single trading entity branded "Redstone". The last element of this process was to re-align the residual cost base to reflect the restructured activities of the Company.

The Company announces that the restructure has been completed and that a new senior management team has been appointed to run the newly consolidated activities of Redstone. This final stage of re-aligning the cost base has resulted in the Company's headcount being reduced by a further 83 members of staff. This is in addition to the 172 members of staff who have either left the Group through recent disposals of businesses or who have been transferred to new owners under TUPE regulations. Redstone now has 442 P.A.Y.E members of staff.

Tony Weaver, Chief Executive, Redstone plc, commented:

"We are looking forward to devoting 100% of our time and energy on driving the business forward as a single entity. We have a strong pipeline of new business opportunities and the capacity to move quickly in converting these leads into profitable revenues.

I would like to thank the staff for their patience and diligence through this difficult period of restructuring. I would also like to thank those staff no longer with the Company for their service and contribution."

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