Revenue up by 42% to £47.4m**

Gross Profit up by 43% to £17.5m**

Gross Profit percentage up to 36.8% from 36.4%**

EBITDA profit of £2.9m*

Profit after tax for the period of £1.0m (second profitable half in succession)

Net cash generated from operating activities of £1.8m

£30m debt facility agreed with Barclays Bank plc (“Barclays”)

Announcement of recommended offer for IDN Telecom plc (“IDN Telecom”)

Successful acquisitions of Symphony Telecom Holdings plc and the Tolerant group of companies

Integration of the two businesses is progressing ahead of plan and will be materially completed by the end of December 2006

Recommended offer for IDN Telecom which will add critical mass to the fixed line business and bring in excess of 2,000 additional B2B customers

Significant customer wins across divisions with organisations such as Xansa and examination boards from England, Northern Ireland and Wales

Customer retention in Telecoms good

Irrevocable undertakings to accept the offer have been received in respect of 154,213,231 IDN Shares representing 39.75 per cent. of the current issued share capital of IDN.

IDN is an established and profitable independent provider of telecommunications solutions and consultancy services to B2B customers.

The Redstone Directors believe that the Acquisition is a further step towards establishing Redstone as a leading IT and communications solution provider for B2B customers in the UK and Ireland.

The Redstone Directors believe that the Acquisition provides the Group with the following principal strategic benefits:

the addition of in excess of 2,000 corporate and SME customers;

increased critical mass within its fixed line telecoms and mobile divisions; and

cost savings through synergies from combining the two UK based fixed line telephony businesses.

Consideration to be financed by Redstone’s increased facilities with Barclays.