Pre-Close Trading Update

17 January 2003

 

 

                               Parity Group plc                                

                           Pre Close Trading Update                            

Results in line with consensus

Preliminary results will be announced on 18 March 2003

Parity Group plc ('Parity' or 'the Group'), the IT services group, is providing
a trading update prior to entering its close period. Parity will announce its
preliminary results for the year ended 31 December 2002 on 18 March 2003.

The Board is pleased to announce that trading conditions for the six months
ended 31 December 2002 have been as expected and full year trading results are
anticipated to be in line with analysts' consensus.

At the time of the interim announcement in September 2002 the Board indicated
that exceptional costs relating to the further restructuring of operations in
the second half of the year were likely to be in the region of £2.5 million and
would yield savings on an annualised basis of £3.5 million. The restructuring
exercise is now largely complete. Management has been able to extend the scope
of this programme in the US business, following the change of leadership there.
It is now expected to produce annualised savings in excess of £4.5 million;
total associated costs are expected to be in the region of £3.5 million.

In common with other companies in our sector, as part of the year end process
the Board will be undertaking a review to assess the continuing appropriateness
of the carrying value of goodwill arising on past acquisitions and of own
shares held by the Employee Benefit Trust.

An update on current trading and prospects will be given in the preliminary
results announcement.

- Ends -

Enquiries:

Parity Group plc                           Telephone: [phone]          
                                                                             
Ian Miller, Group Chief Executive                                            
                                                                             
Alison Leyshon, Group Finance Director                                       
                                                                             
Financial Dynamics                         Telephone: [phone]          
                                                                             
Giles Sanderson                                                              
                                                                             
Emma Rutherford