Meanwhile, Red and Giovanni exit from Diglett's Cave's Pewter City exit. Red has joined Giovanni on a search for Pokémon Fossils. With a few stones in hand, the two proceed to the city to have them examined. As they walk on, Red suggests to Giovanni that he finds the man familiar, but Giovanni assures him that they have never met. Amidst complimenting each other, Red remarks on how he's defeated Gym Leaders and members of Team Rocket; a comment that does not go unnoticed by Giovanni, whose expression turns serious, but nevertheless continues to humor Red. As the two near the city, Red and Giovanni notice a sudden change in temperature; the culprits being a pair of Magmar that had set the Pewter Museum of Science on fire. Red promptly jumps into battle, determined to show off his skills, while Giovanni decides to watch his strategy.
Red begins by calling out Snor to function as a wall while Red thinks of how to continue; Giovanni silently admonishes his apparent lack of strategy. However, Red switches to his newly caught Sandshrew and uses Sand-Attack to suffocate the flames. Giovanni thinks to himself Red's victories were likely due to his inventiveness, then points out to Red that while the Sand-Attack is striking the Magmar, all it seems to be doing is making the Magmar angrier. Following a bit more thought, Red tells Sandshrew to run in circles, creating a sandstorm instead. The attack successfully knocks the Magmar off their feet and immobilizes them completely in sand.
Evaluating Red's quick thinking and his ability to draw out a Pokémon's potential, Giovanni prepares to take care of Red when the boy withdraws his Sandshrew, declaring he cannot attack the helpless Magmar; at this, Giovanni calmly stands down from his combative stance. Noting that the Museum of Science has been burnt into ruins, Giovanni gives Red a translucent stone with a 'bug trapped inside', before the two wish each other luck and separate.
Watching Red leave, Giovanni sneers at Red's chivalrous nature, pointing out Magmar's persistence to track down enemies that defeat them; as he monologues the Magmar break free from their sandy imprisonment and lunge at him, only for Giovanni to promptly freeze them with his Cloyster. Declaring that Red's foolishness would eventually spell his downfall, Giovanni has Cloyster split the still-frozen Magmar in two, and as he reveals a letter 'R' on his shirt, he decides that despite Red's victories over Lt. Surge and Koga, the boy is no threat to Team Rocket.