Trading Update

Thursday 20 January 2005: embargoed for 7.00am

                               Parity Group plc                                

                                Trading Update                                 

Parity Group plc ('Parity' or 'the Group'), the international IT services
group, invited Philip Swinstead to rejoin its Board as Chairman on 12 November
2004. It was announced that Mr Swinstead's first undertaking as Parity's
Chairman would be to commence a strategic review of the Group, reporting back
to shareholders in the preliminary results announcement in March 2005.

Some of the operational problems at Parity quickly became apparent as this
review progressed and, following the departure of the then Chief Executive on
30 November 2004, the Board asked Mr Swinstead to be responsible for the
executive management of the business in the short term and to set about taking
the necessary corrective action.

Based on management accounts, Parity's preliminary results for the year-ended
31 December 2004 will show good operating profits from the growing Resourcing
Solutions businesses in the UK and across mainland Europe, a small loss in
Business Solutions in the second half, a small annual operating profit in the
USA where the market has improved recently, and a loss in Training as predicted
in November 2004.

Parity is closing the Group's head office and moving the few remaining central
staff to smaller premises, still in London. It has also been necessary to
reduce the overall Group headcount to restore the appropriate revenue/cost
balance and therefore, regrettably, up to 60 people will be leaving the Group.

In total, the Group is expected to report a loss for 2004 after discontinued
operations and before goodwill amortisation and tax of the order of £6.5
million, less than half of which will be trading losses, with the balance
comprising exceptional charges including redundancy and further empty property
provisions for up to five years.

For 2005, the Group has budgeted on the basis of a cautious baseline and is
incentivising managers to achieve a higher performance. The 2005 budgets
indicate that this will be a recovery year, with the second half benefiting
from trading improvements in Training and Business Solutions, in anticipation
of the business being back in good order in 2006.

Commenting on today's announcement, Philip Swinstead, Chairman of Parity Group
plc, said:

'We have well established divisional businesses, with good, professional
management and a good reputation with our clients. The review that I am
undertaking has already highlighted a number of issues which we have begun to
address. The changes that have been made have been very well received by our
divisional management who enter 2005 determined to return our Group to growth
and profitability as market conditions improve.'

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Enquiries:

Financial Dynamics                     Telephone: [phone]              
                                                                             
Giles Sanderson                                                              
                                                                             
Harriet Keen                                                                 
                                                                             
Cass Helstrip