Disposal

Parity Group PLC
26 January 2006

26 January 2006



Parity Group plc


Disposal of French and German businesses


Parity Group plc ('Parity' or the 'Group') today announces the sale of
substantially all of its continental European operations.  Parity has entered
into an agreement with GFT Technologies AG ('GFT'), a listed German Corporation,
under which GFT will acquire the issued share capital of a number of Parity's
European subsidiaries in Germany and France (the 'Disposal').  GFT has agreed to
acquire Parity's German business, Parity Beteiligungsgesellschaft GmbH, and its
subsidiaries and Parity's French business, Parity Eurosoft SARL, (together '
Parity Europe') for a total cash payment of EUR7.7 million as well as assumption
of external borrowings expected to amount to EUR0.7 million.  The cash payment
comprises EUR5.9 million for the share capital of Parity Europe and the
settlement of EUR1.8 million of intra-group and third party debt.  Parity Europe
will be sold on a cash free basis together with existing bank borrowings which,
at completion, are estimated to amount to EUR0.7 million.  Completion is
expected to take place on 31 January 2006.

Based on the statutory accounts for the companies being sold, Parity Europe
reported profits before tax for the year ended 31 December 2004 of EUR0.6
million (£0.4 million) on turnover of EUR33.7 million (£22.9 million).  The
value of the gross assets of Parity Europe as at 31 December 2004 was EUR10.4
million (£7.4 million).

The disposal of Parity Europe is in line with the Group's stated strategy of
disposing of its non-UK businesses, focusing its operations on the UK and
reducing the Group's indebtedness.  Following the Disposal, Parity's remaining
operations in continental Europe will be in Holland, Belgium and Switzerland and
the Group continues to consider its options in relation to these businesses.

This disposal is also consistent with the announcement made by the Group on 9
December 2005, in which it indicated that the Board is focusing on the reduction
of the Group's indebtedness.  The proceeds of the Disposal will be used for this
purpose but, as stated, in order to grow the business, the balance sheet must be
strengthened further and as previously indicated the Board will be progressing
discussions with shareholders to this end.



Enquiries:


Financial Dynamics - 020 7831 3113

Giles Sanderson
Harriet Keen
Cass Helstrip


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