Restructuring of associate

Parallel Media Group PLC
26 August 2005


                              Parallel Media Group plc
                             Restructuring of associate


The Board of Parallel Media Group plc ('PMG') announces the restructuring of its
shareholding in its associated company Parallel Media Asia (2003) Limited 
('PMA'), the largest promoter of professional golf tournaments in Asia.

The proposed restructuring will see the introduction of a new investor, Accurate
Gain Profits Limited ('AGPL') through a subscription for a convertible loan of
US$750,000 into PMA with convertible rights equal to 20% of the equity in PMA.
AGPL also has the option to acquire a further 5% of PMA for US$187,500. On full
conversion of the loans into shares, PMG's and Tibbles Participation Corp's
(PMG's partner in PMA) shareholdings in PMA will reduce to 37.5% each.

As part of the restructuring, PMA is in negotiation for a borrowing facility of
US$1,500,000.

As a further part of the restructuring, the existing US$4,549,000 inter company
loan between PMG and PMA will be settled in the following manner:
     
•    through the capitalization by PMG of US$500,000 of the inter company loan 
     for share capital in PMA to match an equivalent amount of cash injection by
     Tibbles Participation Corp;

•    PMA will assume the debt of US$3,000,000 currently owing by PMG to
     Bumiputra - Commerce Bank, in consideration for which PMG will waive a 
     further amount of US$450,000 of the inter company loan;

•    the remaining balance of US$599,000 will be repaid by 15 January 2006 by 
     PMA to PMG on an agreed payment schedule.



The above restructuring will raise additional working capital for PMA to develop
their golf business in the fast growing Asian market place.  It will also settle
the existing inter-company debt between PMG and PMA.


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