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Redstone plc

("Redstone", "the Company" or "the Group")

Update re Fujin Systems Limited

Issue of Equity

Directors' Shareholdings

As announced on 8 November 2010, Fujin Systems Limited ("Fujin") was acquired by the Group for a total consideration of up to £2.9 million, dependent on the achievement of a minimum profit before tax of £560,000 in the year to 31 October 2011. Fujin specialises in data centre consolidation in a number of key vertical markets including research, media and on-line gaming.

Redstone is pleased to report that Fujin has exceeded the earn-out target, and has delivered a profit before tax of £596,000 in the year to 31 October 2011, £430,000 of which has been incorporated into the group results for the six months ending 30 September 2011 as announced on 28 November 2011.

As a result, the maximum consideration of £2.9 million will be paid to the former shareholders of Fujin, and satisfied as follows:-

·; £0.4 million paid in cash on completion in November 2010;

·; £2.0 million by the issue of 220,996,812 new ordinary shares of 0.1 pence each ("Ordinary Shares") at an issue price of 0.89p or 0.927p in December 2011; and

·; £0.5 million to be paid in cash in December 2011.

Application has been made to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will occur at 8.00 a.m. on 7 December 2011.

Following Admission of the new Ordinary Shares the total number of Ordinary Shares with voting rights is 3,102,419,622. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interests in, or a change to their interests in, Redstone under the FSA's Disclosure and Transparency Rules.

As a result of its interest in Fujin, following the issue of the new Ordinary Shares, MXC Capital Limited ("MXC Capital"), representing the interests of Tony Weaver, Chief Executive, and Ian Smith, Non-executive Director, will have increased its shareholding in Redstone by 136,165,352 Ordinary Shares. Following Admission, MXC Capital, together with Ian Smith's self invested personal pension plan, will be interested in 575,665,352 Ordinary Shares, which represents 18.56% of the Company's issued ordinary share capital following Admission.

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