Re Contracts

26 May 2004

                               Parity Group plc                                

 Parity announces contract win with Department for Employment and Learning in  
        Northern Ireland and contract extension with the Cabinet Office        

Parity Group plc ('Parity' or 'the Group'), the IT services group, announces
that it has won the re-competed contract with the Department for Employment and
Learning in Northern Ireland (`DEL') in respect of the Premiere2 graduate
management development programme and has also won a contract extension with the
Cabinet Office in respect of the Fast-Stream graduate recruitment programme.

Department for Employment and Learning in Northern Ireland contract

Parity has operated a management development programme for graduates on behalf
of DEL for the past 13 years. The programme, which is run from Parity's
training centre in Belfast, is designed to provide graduates with the
management skills and experience to secure sustainable graduate level jobs in
Northern Ireland and to make a positive impact on local businesses. Over the
past 13 years Parity has trained over 3,000 graduates, placing an estimated 90%
each year in permanent employment with employers in Northern Ireland. The new
contract which starts on 1 July 2004 is for an initial period of two years with
the possibility of a further extension of up to one year and is expected to
generate revenues of approximately £1.5 million per annum, including permanent
placement fees. In addition, earlier this year Parity signed a one-year
contract with DEL to run a management development programme for 25 graduates,
designed specifically to address serious skills deficiencies in production and
processing management in the Northern Irish Food and Drink sector. This
contract which started on 1 May 2004 is expected to generate further revenues
of approximately £180,000.

Cabinet Office contract

Parity was awarded a five-year contract by the Cabinet Office starting on 1
April 2003 to redevelop, manage and operate the Civil Service's `Fast Stream'
graduate selection and recruitment programme. Under the contract, Parity, in
conjunction with the Cabinet Office, is introducing new technology to further
improve the efficiency of the processes and to create a significantly better
candidate experience. The contract, which involves the skills of all three of
Parity's European business units, has now been extended for a further two years
with an additional estimated value of some £2 million in revenues to Parity
from 1 April 2008.

The total revenues under this contract over seven years are now estimated to be
in excess of £7.0 million, a reduction from the original value of £8.0 million
over five years, reported when the contract win was originally announced in
November 2002. However, the cost effectiveness for the Cabinet Office and the
profitability for Parity is enhanced as a result of increased efficiencies in
the processes.

Commenting on the contract awards, Ian Miller, Chief Executive of Parity, said:
'I am delighted with both of these contracts. The Premiere2 win provides
further support for our market leadership in training outsourcing, an important
and growing business segment, and allows us to continue our long and mutually
successful partnership with the Northern Ireland Department of Employment and
Learning.

'Our work with the Cabinet Office is an excellent example of Parity's three
business units working together to deliver a unique level of service in
Business Process Management projects of this nature. We are pleased that the
Cabinet Office has shown its confidence in the quality of our work and our
ability to deliver by extending the contract for a further two years at this
early stage.'

Enquiries:

Parity Group plc                            Tel: [phone]                 
                                                                               
Ian Miller, Chief Executive                                                    
                                                                               
Alison Leyshon, Group Finance Director                                         
                                                                               
Financial Dynamics                          Tel: [phone]                 
                                                                               
Harriet Keen, Giles Sanderson