Director Shareholding

red24 plc ("red24" or "the Group")

Director dealing

On 8 September 2010, red24 plc was notified by Sidebell Limited ("Sidebell"), a company in which Simon Richards, Chairman, has an interest, that, in order to be in a position to exercise its warrants before their expiry on 30 September 2010 and not be in breach of the UK City Code on Takeovers and Mergers, it has sold 1,150,000 Red24 shares at 7p per share, purchased 400,000 Red24 shares at 7p per share and, subsequent to these two trades, notified the Company that it has exercised its warrants to subscribe for 1,150,000 red24 shares at 5p each. The Company has duly issued and allotted the 1,150,000 new red24 shares.

Following the share sale, share purchase and exercise of the warrants outlined above, Sidebell will have an interest in 13,059,250 ordinary shares representing approximately 26.99 per cent. of the enlarged issued share capital of the Company and Simon Richards will have an interest in 14,139,250 ordinary shares (including Sidebell's interest) representing approximately 29.22 per cent. of the enlarged issued ordinary share capital of the Company.

Application has been made to the London Stock Exchange for admission of the 1,150,000 new red24 shares to be admitted to trading on AIM. Admission is expected to occur on Tuesday 14 September 2010.

For the purposes of the Disclosure and Transparency Rules, red24's total issued share capital following the issue of these shares consists of 48,391,083 ordinary shares of 1p each.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, red24, under the Disclosure and Transparency Rules.

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red24 is a provider of a range of security risk management services, offering preventative and reactive advice to help individuals and organisations to avoid and manage security risks to themselves, their families and their organisations. The products are principally distributed through leading international financial service companies.