Dutch Subsidiary

13 June 2003

                               Parity Group plc                                

Statement re Dutch subsidiary

Following the announcement on 9 May 2003 by Parity Group plc ('Parity' or the
'Group') regarding financial irregularities identified at one of its Dutch
subsidiaries, Parity Solutions BV, the Group has undertaken a
detailed review of the business.  That has resulted in the Group seeking a
petition from the Utrecht court in relation to that subsidiary only which, if
granted, would have an effect not dissimilar to US Chapter 11 protection.

As announced on 9 May 2003, revenues for this business in respect of the year
to 31 December 2002 may have been overstated by £1.6m as a result of the
financial irregularities identified.  Prior to adjusting for these
irregularities the 2002 revenues for the business amounted to £5.7m (compared
to revenues for the Group of £183.3m for the year to 31 December 2002).  An
adjustment will be made to the 2003 interim accounts to reflect the impact of
the financial irregularities identified.  An insurance claim for a substantial
proportion of the financial loss incurred has been lodged and an investigation
of the circumstances by the Dutch police continues. 

The Parity Board has examined a number of options regarding the future of this
business.  For the business to be retained within the Group, the Board
considered it necessary to substantially reduce the cost base of Parity
Solutions BV, requiring a reduction in headcount and employee benefits. 
However, the cost of implementing such reductions would be substantial and out
of proportion with the savings which could have been achieved.  Without
achieving these cost savings, the Board considers that it is unable to justify
the ongoing support of Parity Solutions BV.

To close the business would have incurred costs which the Parity Board
considered to be prohibitive and against the interests of Parity shareholders. 
Furthermore, given the lack of any foreseeable recovery in the IT services
market in the Netherlands, initial efforts suggest that it is unlikely the
business could be sold as a going concern in the short term.

Ian Miller, Chief Executive of Parity, commented: 'It is with considerable
regret that we are having to take these  steps in respect of Parity Solutions
BV.  However, it has proved the only realistic option available to the Group in
order to best protect the interests of all concerned.

'The issues arising at Parity Solutions BV are limited to this one small part
of the Group and no other parts of the business have been implicated.  We await
the outcome of the police investigation.'

Parity retains a presence in the Netherlands through its Dutch staffing
business, Parity Eurosoft BV, which has always been separately managed from
Parity Solutions BV.

Ends

Enquiries:
Parity Group plc             Tel: [phone] 
Ian Miller, Chief Executive                     
Financial Dynamics           Tel: [phone] 
Harriet Keen