Financing Arrangement

Parallel Media Group plc                            

                           (`PMG' or the `Company')                            

                             Financing Arrangement                             

Parallel Media Group plc (AIM:PAA) announces that it has entered into a medium
term financing arrangement with Trafalgar Capital Specialized Fund
("Trafalgar") to raise Euro500,000 with an option to draw down a further
Euro250,000 in July 2007. Under the terms of the arrangement PMG the loan is to
be repaid over 24 months either in cash or, at the option of PMG, via the issue
of new ordinary shares at a price related to the then market price. Trafalgar
has the option, at any time after 15 July 2007, to convert the then outstanding
part of the loan into new ordinary shares at a conversion price of 2p per
share. As part of the arrangement fee for the loan, PMG will issue Trafalgar
warrants to subscribe 250,000 new ordinary shares at 1.35p per share and
500,000 new ordinary shares at 1.8p per share.

The intention is to use the proceeds to repay the remaining loan owed to PMG's
ex partners in Parallel Media Asia (2003) Ltd, the associated company which PMG
disposed of in September 2006. The amount currently outstanding on this loan is
£300,000 and under the terms of the loan it can be repaid in either cash or in
shares. If it were to be paid in shares then the loan would be repayable at a
60% premium.

For more information:

Richard Graham

Parallel Media Group

Tel: [phone]

Nominated Adviser

Ross Andrews

Director

City Financial Associates Limited

Tel: [phone]