Interim Results

Parallel Media Group PLC
09 August 2005


                            Parallel Media Group plc

              Interim Results for the 6 months ended 30 June 2005


Chairman's statement


The Company's interim results for the period ended 30 June 2005 show a retained
loss of £218,000 compared to a loss of £892,000 reported in last year's interim
results. During the six months to 30 June 2005 the Company, together with its
49.9% associate, Parallel Media Asia (2003) Limited (PMA), launched two new PGA
European Tour golf events in China and Indonesia and two new Ladies European
Tour events in Singapore and Thailand. This period also saw the Company,
together with PMA, successfully stage PGA European Tour events in Malaysia,
Singapore and China.


Financial review


The turnover for the period was £1,923,000 compared to a turnover of £1,861,000
(after the deduction share of joint venture turnover) in the prior period.  The
operating loss for the period was £110,000 (6 months ended 30 June 2004:
£531,000). The share of profit in associates line is the Group's 49.9% share of
the profit of PMA for the period. Interest payable of £131,000 relates to
interest paid on the US$3 million facility with Bumiputra Commerce Bank and
interest paid on convertible and shareholders loans.

At 30 June 2005 the Group had a net short term overdraft position of £10,000.
The creditors falling due after more than one year comprised of a proportion of
the Bumiputra Commerce Bank facility, convertible loans and shareholder loans.

As indicated in the Chairman's Statement in the 31 December 2004 Report and
Accounts and the subsequent circular dated 30 June 2005, the Company has been
looking to raise monies in order to have sufficient working capital to develop
and increase its business over the next 12 months. I am therefore pleased to
announce that the Company has today received minimum commitments for a cash
injection of £750,000.  The commitments have been made by myself and RAM
Investment Group plc. The cash injection is to be in the form of convertible
loans, with a conversion price of 1.5p per share.


Board changes


Tan Sri Mohd Razali Abdul Rahman is standing down as Chairman of the Company in
order to be able to devote more time to his role as Chairman of PMA and I would
like to take this opportunity to thank him for his tremendous support over the
last two years and look forward to a continued close relationship with him in
the future. Snowy Invest & Trade Inc. will continue to have two directors on the
Company's board. The Company will be announcing non-executive additions to the
board in the Autumn including a new Non-Executive Chairman.  In the meantime I
will temporarily be taking on the role of both Chairman and CEO.


David Ciclitira
Chairman & CEO
9 August 2005



Consolidated profit and loss account for the 6 months ended 30 June 2005


                                                             6 months ended   6 months ended       Year ended
                                                                    30 June          30 June      31 December
                                                                       2005             2004             2004
                                                                (unaudited)      (unaudited)        (audited)
                                                     Note             £'000            £'000            £'000

Turnover: Group and share of joint venture                            1,923            2,584            3,702
Less share of turnover of joint venture                                   -            (723)            (723)

Turnover                                                              1,923            1,861            2,979

Cost of Sales                                                       (1,321)          (1,242)          (1,943)

Gross profit                                                            602              619            1,036

Administrative Expenses                                               (712)          (1,150)          (2,474)
Other operating Income                                                    -                -                -

Operating loss before exceptional items                               (110)            (531)          (1,288)

Administrative expenses - exceptional                                     -                -            (150)

Operating loss                                                        (110)            (531)          (1,438)

Share of operating loss in joint ventures                                 -            (226)            (226)
Share of operating profit/(loss) in associates                           19            (192)            (672)
Exceptional items - profit on partial disposal
of a subsidiary                                                           -                -               16

Loss on ordinary activities before interest
and tax                                                                (91)            (949)          (2,320)

Interest receivable                                                       -                -                1
Interest payable                                                      (131)             (57)            (397)

Loss on ordinary activities before tax                                (222)          (1,006)          (2,716)

Tax on loss on ordinary activities                                                         -                -

Loss on ordinary activities after tax                                 (222)          (1,006)          (2,716)

Minority interests                                                        4              114              144

Loss for the financial period                                         (218)            (892)          (2,572)

Loss per share
- basic and diluted                                     2           (0.98p)          (4.02p)         (11.58p)
- adjusted                                              2           (0.98p)          (4.02p)         (10.98p)




Consolidated balance sheet as at 30 June 2005

                                                            30 June            30 June        31 December
                                                               2005               2004               2004
                                                        (unaudited)        (unaudited)          (audited)
                                                              £'000              £'000              £'000
Fixed assets
Tangible assets                                                  59                 78                 62
Investments                                                     757              1,206                883

                                                                816              1,284                945

Current assets
Debtors   - Due within one year                                 914              1,363                923
          - Due after one year                                1,971              1,750              1,890

                                                              2,885              3,113              2,813

Cash                                                              -                  7                 47

                                                              2,855              3,120              2,860

Creditors: amounts falling due
within one year                                             (2,361)            (2,923)            (2,003)

Net current assets/(liabilities)                                524                197                857

Total assets less current liabilities                         1,340              1,481              1,802

Creditors: amounts falling due
after one year                                              (5,412)            (3,605)            (5,468)

Provisions for liabilities and
charges
Associates                                                    (156)              (156)              (156)

Net liabilities                                             (4,228)            (2,280)            (3,822)

Capital and reserves
Called up share capital                                       1,110              1,110              1,110
Share premium account                                             -                  -                  -
Other reserves                                                5,591              5,591              5,591
Profit and loss account                                    (10,821)            (8,895)           (10,413)

Shareholders' funds - equity                                (4,120)            (2,194)            (3,712)
Minority interest - equity                                    (108)               (86)              (110)

                                                            (4,228)            (2,280)            (3,822)




Consolidated cash flow statement for the 6 months ended 30 June 2005

                                                                           6 months ended     6 months ended
                                                                             30 June 2005       30 June 2004
                                                              Note                  £'000              £'000

Net cash outflow from operating activities                       3                     80            (1,294)

Returns on investments and servicing of finance
Interest paid                                                                       (131)               (57)
Interest received                                                                       -                  -

Net cash outflow from returns on investments and servicing
of finance                                                                          (131)               (57)

Tax paid                                                                                -                 -

Capital expenditure                                                                     -                  -

Acquisitions and disposals                                                              -                  -
Further investment in associated undertaking                                            -              (158)
Net cash sold with subsidiary                                                           -              (242)

                                                                                        -              (400)

Net cash outflow before management of liquid resources &                             (51)            (1,751)
financing
                                                                                                     
Financing
Convertible loan                                                                        -                678
Loan from director                                                                      -                514

                                                                                        -              1,192

Decrease in cash                                                                     (51)              (559)



Notes forming part of the interim results for the period ended 30 June 2005


1.  Accounting policies


The interim results have been prepared on the basis of the accounting policies
as set out in the Group's 31 December 2004 statutory accounts.

The comparative figures show above for the period ended 31 December 2004 do not
constitute statutory accounts as they have been extracted from the statutory
accounts which have been filed with the Registrar of Companies. The auditors'
report on those financial statements which was issued on 29 June 2005 contained
a reference to a fundamental uncertainty, details of which are shown below.


Fundamental uncertainties

In forming our opinion, we have considered the adequacy of the disclosures made
in note 1 of the financial statements concerning the assumptions underlying the
directors' financial forecasts and the consequent uncertainty over the
appropriateness of the going concern basis of accounting. We have also
considered the disclosures made in notes 14 and 15 concerning the uncertainty
over the carrying value (in the company's balance sheet) of the investment in
subsidiaries and the recoverability of the amounts owed by associated companies.
In view of the significance of these uncertainties we consider that they should
be drawn to your attention, but our opinion is not qualified in this respect.

The accounting policies included in the financial statements for the year ended
31 December 2004 included the following basis of preparation note.


Basis of preparation - Going concern

The directors have prepared trading and cash flow forecasts for the group for
the 30 month period to 31 December 2007. These forecasts incorporate, inter
alia, the following assumptions:-

a) as stated in the Chairman's statement, there will be a further cash injection
of £750,000 in the company in the near future

b) the company's associated undertaking, Parallel Media Golf (Asia) Ltd ('PMGA
'), will continue to repay its debt due to the company at the rate of $60,000
per month (plus interest)

c) the directors are in discussion with the directors of Parallel Media Asia
(2003) Ltd an associated undertaking of the Company with a view to strengthening
the latter's financial position by means of a substantial cash injection

d) certain creditors will continue to acquiesce in receiving payment in
instalments


Based on the above assumptions, the directors believe these forecasts to be
realistic, and consequently have prepared the financial statements on the going
concern basis, which assumes that the group will continue in operational
existence for the foreseeable future.

If any or all of the above assumptions prove to be inaccurate, the going concern
basis might not be appropriate, and the financial statements do not contain any
adjustments which might prove necessary as a consequence thereof.

These interim results are unaudited and do not constitute statutory accounts.


2.  Loss per share

(i) Basic                                                           6 months   6 months ended          Year ended
                                                                       ended     30 June 2004    31 December 2004
                                                                30 June 2005
                                                                 (unaudited)      (unaudited)           (audited)

Loss for the financial period                                     (£218,000)       (£892,000)        (£2,572,000)

Number of shares in issue                                         22,203,505       22,203,505          22,203,505

Loss per share                                                       (0.98p)          (4.02p)            (11.58p)


(ii)  Diluted

Diluted loss and earnings per share is calculated on the same basis as basic
loss and earnings per share because the effect of the potential ordinary shares
(share options) reduces the net loss per share and is therefore anti-dilutive.


(iii)  Adjusted earnings per share

The adjusted earnings per share figure shown below is calculated on attributable
profit excluding goodwill, discontinued operations, exceptional items included
in administrative expenses, and exceptional items included after operating
profit.  This calculation has been used as it is deemed to give a more
appropriate indication of the earnings of the continuing operations of the
Group.

                                                  6 months ended          6 months ended              Year ended
                                                    30 June 2005            30 June 2004        31 December 2004
                                                     (unaudited)             (unaudited)               (audited)
                                             Earnings        EPS     Earnings        EPS    Earnings         EPS
                                               £'000s      Pence       £'000s      Pence      £'000s       Pence

Basic loss per share                            (218)    (0.98p)        (892)    (4.02p)     (2,572)    (11.58p)
Administrative expenses - Exceptional               -          -            -          -         150       0.67p
Exceptional items                                   -          -            -          -        (16)     (0.07p)

Adjusted loss per share                         (218)    (0.98p)        (892)    (4.02p)     (2,438)    (10.98p)


     
3.   Reconciliation of operating loss to net cash outflow from operating
     activities

                                                                    6 months ended        6 months ended
                                                                      30 June 2005          30 June 2004
                                                                             £'000                 £'000

Operating loss after exceptional items                                       (110)                 (531)
Depreciation                                                                     2                     7
Gain on disposal of                                                              -                  (16)
subsidiaries
(Increase)/decrease in debtors                                               (112)                 (841)
(Decrease)/Increase in                                                         301                    88
creditors
Foreign exchange                                                               (1)                   (1)

Net cash outflow from operating activities                                    (80)               (1,294)


4.  Other


Copies of unaudited interim results have not been sent to shareholders, however
copies are available on request from the Company Secretary at the company's
Registered Office: 56 Ennismore Gardens, London SW7 1AJ.



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