Let V={v1,...,vn} be a set of n points on the real line (existing facilities). The problem considered is to locate p new point facilities, F1,...,Fp, in V while satisfying distance constraints between pairs of existing and new facilities and between pairs of new facilities. For i=1,...,p, j=1,...,n, the cost of locating Fi at point vi is cij. The objective is to minimize the total cost of setting up the new facilities. The paper presents an 𝒪(p3n2logn) algorithm to solve the model.