diff --git a/hostnames_allocator/Cargo.toml b/hostnames_allocator/Cargo.toml
index d700871..5bfcc96 100644
--- a/hostnames_allocator/Cargo.toml
+++ b/hostnames_allocator/Cargo.toml
@@ -6,3 +6,5 @@ edition = "2021"
 # See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
 
 [dependencies]
+[dev-dependencies]
+itertools = "0.11.0"
diff --git a/hostnames_allocator/src/lib.rs b/hostnames_allocator/src/lib.rs
new file mode 100644
index 0000000..09cb3ae
--- /dev/null
+++ b/hostnames_allocator/src/lib.rs
@@ -0,0 +1,3 @@
+#![feature(btree_cursors)]
+
+pub mod ranged_number_allocator;
diff --git a/hostnames_allocator/src/ranged_number_allocator.rs b/hostnames_allocator/src/ranged_number_allocator.rs
new file mode 100644
index 0000000..c322edf
--- /dev/null
+++ b/hostnames_allocator/src/ranged_number_allocator.rs
@@ -0,0 +1,88 @@
+use std::{collections::BTreeMap, ops::Bound};
+
+pub struct RangedNumberAllocator {
+    pub tree: BTreeMap<u32, u32>,
+}
+
+impl RangedNumberAllocator {
+    pub fn new() -> Self {
+        RangedNumberAllocator {
+            tree: BTreeMap::new()
+        }
+    }
+
+    pub fn remove(&mut self, value: u32) {
+        let mut cursor = self.tree.upper_bound_mut(Bound::Included(&value));
+        if let Some((&range_start, &range_end)) = cursor.key_value() {
+            if range_end >= value {
+                // The found range covers the requested value, meaning this value was previously used. Now there are four scenarios:
+                // 1. It's [value, value]; we should remove it;
+                // 2. It's [value, x] where x > value; we should replace it with [value+1, x];
+                // 3. It's [x, value] where value > x; we should change it to [x, value-1];
+                // 4. It's [x, y] where x < value < y; we should replace it with [x, value-1] and [value+1, y].
+                if range_start == value && range_end == value {
+                    // Scenario 1
+                    cursor.remove_current().unwrap();
+                } else if range_start == value {
+                    // Scenario 2
+                    cursor.insert_after(value + 1, range_end);
+                    cursor.remove_current().unwrap();
+                } else if range_end == value {
+                    // Scenario 3
+                    *cursor.value_mut().unwrap() = value - 1;
+                } else {
+                    // Scenario 4
+                    cursor.insert_after(value + 1, range_end);
+                    *cursor.value_mut().unwrap() = value - 1;
+                }
+            }
+        }
+    }
+
+    pub fn allocate(&mut self) -> u32 {
+        let mut cursor = self.tree.lower_bound_mut(Bound::Unbounded);
+        // Six scenarios:
+        // 1. Tree is empty; we should add [1, 1] range and return 1;
+        // 2. Tree has only one range [1, x]; we should change it to [1, x+1] and return x+1;
+        // 3. Tree has at least first two ranges, [1, x] and [x+2, y]; we should replace them with [1, y] and return x+1;
+        // 4. Tree has at least first two ranges, [1, x] and [y, z] where y > x+2; we should change the first range to [1, x+1] and return x+1;
+        // 5. Tree has at least first range [2, x]; we should replace it with [1, x] and return 1;
+        // 6. Tree has at least first range [x, y] where x > 2; we should add [1, 1] and return 1.
+        if let Some((&range_start, &range_end)) = cursor.key_value() {
+            // There is at least one range; eliminated scenario 1, left with 2-6.
+            if range_start == 1 {
+                // First range starts with 1; eliminated scenarios 5-6, left with 2-4.
+                if let Some((&next_range_start, &mut next_range_end)) = cursor.peek_next() {
+                    // There is another range; eliminated scenario 2, left with 3-4
+                    if next_range_start == range_end + 2 {
+                        // Scenario 3
+                        *cursor.value_mut().unwrap() = next_range_end;
+                        cursor.move_next();
+                        cursor.remove_current_and_move_back().unwrap();
+                        return range_end + 1;
+                    } else {
+                        // Scenario 4
+                        *cursor.value_mut().unwrap() = range_end + 1;
+                        return range_end + 1;
+                    }
+                } else {
+                    // Scenario 2
+                    *cursor.value_mut().unwrap() = range_end + 1;
+                    return range_end + 1;
+                }
+            } else if range_start == 2 {
+                // Scenario 5
+                cursor.insert_before(1, range_end);
+                cursor.remove_current().unwrap();
+                return 1;
+            } else {
+                // Scenario 6
+                cursor.insert_before(1, 1);
+                return 1;
+            }
+        } else {
+            cursor.insert_after(1, 1);
+            return 1;
+        }
+    }
+}
diff --git a/hostnames_allocator/tests/ranged_number_allocator_tests.rs b/hostnames_allocator/tests/ranged_number_allocator_tests.rs
new file mode 100644
index 0000000..200ca4a
--- /dev/null
+++ b/hostnames_allocator/tests/ranged_number_allocator_tests.rs
@@ -0,0 +1,111 @@
+extern crate hostnames_allocator;
+
+use hostnames_allocator::ranged_number_allocator::RangedNumberAllocator;
+
+fn create_allocator(data: &[(u32, u32)]) -> RangedNumberAllocator {
+    RangedNumberAllocator {
+        tree: data.to_owned().into_iter().collect()
+    }
+}
+
+fn check_allocator(allocator: RangedNumberAllocator, expected: &[(u32, u32)]) {
+    itertools::assert_equal(allocator.tree, expected.to_owned());
+}
+
+#[test]
+fn remove_preserves_tree_when_empty() {
+    let mut allocator = create_allocator(&[]);
+    allocator.remove(5);
+    check_allocator(allocator, &[]);
+}
+
+#[test]
+fn remove_preserves_tree_when_not_found() {
+    let mut allocator = create_allocator(&[(1, 3), (11, 13)]);
+    allocator.remove(5);
+    check_allocator(allocator, &[(1, 3), (11, 13)]);
+}
+
+#[test]
+fn remove_removes_range_with_single_value() {
+    let mut allocator = create_allocator(&[(1, 3), (5, 5), (11, 13)]);
+    allocator.remove(5);
+    check_allocator(allocator, &[(1, 3), (11, 13)]);
+}
+
+#[test]
+fn remove_replaces_range_starting_with_value() {
+    let mut allocator = create_allocator(&[(1, 3), (5, 7), (11, 13)]);
+    allocator.remove(5);
+    check_allocator(allocator, &[(1, 3), (6, 7), (11, 13)]);
+}
+
+#[test]
+fn remove_changes_range_ending_with_value() {
+    let mut allocator = create_allocator(&[(1, 3), (5, 7), (11, 13)]);
+    allocator.remove(7);
+    check_allocator(allocator, &[(1, 3), (5, 6), (11, 13)]);
+}
+
+#[test]
+fn remove_splits_range_containing_value() {
+    let mut allocator = create_allocator(&[(1, 3), (5, 9), (11, 13)]);
+    allocator.remove(7);
+    check_allocator(allocator, &[(1, 3), (5, 6), (8, 9), (11, 13)]);
+}
+
+#[test]
+fn remove_removes_last_value() {
+    let mut allocator = create_allocator(&[(5, 5)]);
+    allocator.remove(5);
+    check_allocator(allocator, &[]);
+}
+
+#[test]
+fn allocate_initializes_empty() {
+    let mut allocator = create_allocator(&[]);
+    assert_eq!(allocator.allocate(), 1);
+    check_allocator(allocator, &[(1, 1)]);
+}
+
+#[test]
+fn allocate_adds_second_value() {
+    let mut allocator = create_allocator(&[(1, 1)]);
+    assert_eq!(allocator.allocate(), 2);
+    check_allocator(allocator, &[(1, 2)]);
+}
+
+#[test]
+fn allocate_adds_tenth_value() {
+    let mut allocator = create_allocator(&[(1, 9)]);
+    assert_eq!(allocator.allocate(), 10);
+    check_allocator(allocator, &[(1, 10)]);
+}
+
+#[test]
+fn allocate_adds_value_for_two_ranges_starting_with_one() {
+    let mut allocator = create_allocator(&[(1, 5), (10, 15)]);
+    assert_eq!(allocator.allocate(), 6);
+    check_allocator(allocator, &[(1, 6), (10, 15)]);
+}
+
+#[test]
+fn allocate_combines_two_adjacent_ranges_starting_with_one() {
+    let mut allocator = create_allocator(&[(1, 5), (7, 15)]);
+    assert_eq!(allocator.allocate(), 6);
+    check_allocator(allocator, &[(1, 15)]);
+}
+
+#[test]
+fn allocate_adds_value_for_range_starting_with_two() {
+    let mut allocator = create_allocator(&[(2, 10)]);
+    assert_eq!(allocator.allocate(), 1);
+    check_allocator(allocator, &[(1, 10)]);
+}
+
+#[test]
+fn allocate_adds_value_for_range_starting_with_ten() {
+    let mut allocator = create_allocator(&[(10, 20)]);
+    assert_eq!(allocator.allocate(), 1);
+    check_allocator(allocator, &[(1, 1), (10, 20)]);
+}