Demerger Effective

Redstone PLC

("Redstone" or the "Company")

Demerger Effective

Redstone is pleased to announce that all of the conditions to the separation of the Company's Network-Based Managed Services Business by way of a demerger to a new company called Redcentric plc have been satisfied and the Demerger has today become effective.

Redstone remains a well established Infrastructure Solutions provider to investment banks and other blue chip organisations with a strong annuity based campus network management division and a cabling projects business. The Redstone brand is well regarded and respected in the Infrastructure Solutions market and the Directors believe that Redstone is well positioned to benefit from sector consolidation, as a standalone specialist Infrastructure Solutions business.

New ordinary shares in Redcentric

Pursuant to the Demerger, the holders of ordinary shares in Redstone at 5.00 p.m. on 5 April 2013 will receive, for every 10 ordinary shares held in Redstone, one new ordinary share in Redcentric.

Admission to AIM and trading in Redcentric ordinary shares under the ticker "RCN" is expected to commence at 8.00 a.m. on 24 April 2013.

CREST accounts will be credited with Redcentric ordinary shares today. Shareholders will be sent share certificates in respect of their certificated holdings in Redcentric by 22 May 2013.

General

Capitalised terms used in this announcement but not defined have the meanings given to them in the Circular published by Redstone on 13 February 2013.

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