Restructuring Update

Parity Group PLC
09 December 2005


For release at 7:00am, 9 December 2005

                              Restructuring Update

The Board of Parity Group plc releases the following update.
'In the past twelve months the Company's new management has set about
reorganising the Group following several years of poor performance in order to
return to profitability. A new UK-centric strategy has been put in place
supported by the disposal of non-UK businesses and significant organisational
change which is now nearing completion. The Board intends to appoint a new Chief
Operating Officer and Financial Director in the first quarter of 2006 to
complete the rebuilding of the management team.

Operationally there has been significant restructuring, with new management
appointments across the Group. Costs have been reduced both in overhead and
operational areas, serious litigation has been resolved and excess property
sublet wherever possible, a process which management is continuing. The
financial function has been centralised under a new Head of Finance with a
consequent improvement in both forecasting and control. Both the Staffing
businesses have performed well in the last year. The Solutions business has been
restructured with significant cost savings, with an improved and simplified
sales and marketing approach concentrating on its strong capabilities. Good
business has been won this year, the order book is improving and the division
has continued to demonstrate the recovery identified at the time of the interim
results announcement. Training has not seen any significant upturn in revenues
in the second half of the year; however the changes disclosed in September
continue to be implemented to bring this division back to profitability for next
year. The Group is also imminently to transfer to a new outsourcing supplier for
its IT services at a substantially reduced cost.

In summary, the outlook for the Group's overall trading performance in 2005 has
not changed significantly since the Interim Statement in September.

The Company has now been able to further assess the impact to its financial
statements resulting from the change to IFRS which will have the effect to
reduce the Company's 2005 profit before taxation by some £490,000, these changes
resulting from the impact of accounting for the Company's pension scheme, LTIP
programme and stock option grants. As previously disclosed, the 2005 results
will also reflect the write downs from the recent US disposal and the cost of
changing the provider of outsourced IT services to the Group, which is currently
the subject of a mediation process and therefore cannot be quantified at this
time.

The Board is now turning its attention to the final element of rebuilding the
Group, namely further reduction in the level of debt. Whilst finalising the sale
of the mainland European business will reduce debt and our bankers continue to
remain supportive, in order to grow the business going forward the balance sheet
equity must be strengthened and we will be progressing discussions with
shareholders to this end.'

Enquiries:
John Hughes, Chairman                                              020 7832 3500



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