IT Group Holdings (fka ITGL)

[TechKim]

Note 8 - Operating Leases

The Company leases 6,000 sq. feet of office space at 46 Clerkenwell Close,
London, England for approximately $4,880 per month until 2011 with a lease
renewal period in 2007. In addition, the Company leases approximately 2,000 sq
feet at 10-16 Scrutton Street, London, England, on a month to month basis at a
rate of approximately $2,000 per month.

On August 8, the Company signed a three year lease for 800 square feet of space
to house a new switch in a building at 80 Clifton Street in London that is
specifically dedicated to telecom services that will increase efficiency of line
choice and will lower the cost of sales. The lease cost is $10,433 per month, is
effective September 1, 2006 and is automatically renewable. In addition, the
Company has an option for additional space.

Rent and related expense for the six months ended June 30, 2006 and 2005 was $
49,810 and $29,280, respectively.