Issue of Equity

Parallel Media Group PLC
30 June 2005

                            Parallel Media Group plc

                                Issue of equity

In the preliminary results of Parallel Media Group plc (the 'Company') announced
today it was stated that the Company was proposing to raise between £750,000 and
£1,100,000 by a new issue of convertible secured loan stock.

Further to this announcement, the Board announces that a circular containing
details of these proposals is being posted to Shareholders today.  The circular
explains that, as a consequence of building the business, the Company requires
additional working capital, and that the difficulties of earlier years have left
the Group short of working capital to meet its day-to-day needs of head office
and quoted company expenditures.  Every effort has been made to reduce central
costs which are now at a minimum consistent with our remaining a publicly quoted
company.

Between £750,000 and £1,100,000 of new monies are being subscribed by new
investors in the form of an issue of convertible secured loan stock.  Agreement
in principle has been reached for David Ciclitira (a director of the Company)
and an independent investment company to subscribe  £250,000 and £500,000 of
such loan stock respectively.  In addition both David Ciclitira and Snowy Invest
& Trade Inc ('Snowy') with which the chairman, Tan Sri Mohd Razali Abdul Rahman
(chairman of the Company) is associated have agreed to convert, respectively, up
to £250,000 and £94,603 of the existing indebtedness owed to them by the Company
into the convertible loan stock referred to above.

The convertible loan stock will have an approximate three year term, will bear
interest at Euribor plus 3% and will be convertible into new ordinary shares at
the rate of 1.5p per new ordinary share.

David Ciclitira and Tan Sri Mohd Razali Adbul Rahman both have an interest in
the proposals and are deemed to be Related Parties as defined in Rule 13 of the
AIM Rules.  Keld Kristiansen, the independent director, having consulted with
the Company's nominated adviser, City Financial Associates Limited, considers
the terms of the investment by the Related Parties to be fair and reasonable
insofar as the Shareholders of the Company are concerned.


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