Operational Review

February 2006 saw the Company being chosen by Speedy Hire plc ('Speedy') as the
technology and hosting partner to implement and support Speedy's new enterprise
management infrastructure. The 24 month contract includes consultancy,
implementation and ongoing application hosting, management and monitoring.

In February 2006 the Company made a strategic decision to partner with Easynet.
This connects Red Squared to the Easynet UK backbone via resilient links and
additionally opens up access to over 20 additional data centre locations
throughout the UK for hosting of customer equipment.

In March 2006, the Company was selected by Umbro International Ltd ('Umbro'),
the global football brand, to host and manage Umbro's retail and B2B websites
over the World Cup period and beyond. The 3-year contract includes the provision
of communication circuits, data centre facilities, systems management for
Umbro's websites and highly available IBM hardware (iSeries and xSeries).

In July 2006 the Company signed a 5-year hardware supply, hosting and Managed
Services contract worth in excess of pound;750,000 with Promethean Ltd
('Promethean'), a worldwide leader in the development and provision of
collaborative classroom solutions and audiovisual equipment. Under the
agreement, Red Squared will be providing around the clock monitoring and
management of critical systems delivering Promethean's new group-wide enterprise
software solution.

In September 2006 the Company announced the signing of a hardware and software
supply agreement with GB Group plc ("GB Group"), a market leader in the
provision of innovative consumer data services and technologies. Under the
agreement, Red Squared will also provide consultancy and training along with
maintenance and support. The contract was won against competition from other
major suppliers to create a state of the art IT environment for GB Group that
will support and accommodate planned growth, using highly reliable and scalable
systems together with leading-edge blade and storage technologies (including
VMware and Red Squared's signature suite Red(2)Alert).

In September 2006 the Company also won a 3-year remote Managed Services contract with Silentnight Group Limited ("Silentnight"), the UK's leading bed
manufacturer. The contract, worth in the region of pound;300,000, will provide
end-to-end support for Silentnight's new enterprise software solution and 24x365
systems monitoring and management to assist the Group's continuing innovation
and development.

To read the full background details on RDS visit www.shareclubuk.co.uk the listing has been made out for the members and others to view. RDS will move forward as new business wins are made..

Jarvis Investment Company Nominee Account is now the beneficial owner of
1,390,000 Ordinary Shares in Red Squared Plc representing approximately 4.9
per cent. of the total number of shares held by persons other than the Company. As a shareholder myself in Red Squared I am pleased to note that Jarvis Investment Nominee Account is now also a major share holder. At shareclubuk.co.uk this company is looked upon as a small company with plenty of potential.