Director shareholding

Parkmead Group (The) PLC
23 May 2006



                             The Parkmead Group PLC



                   Director shareholding and issue of options



Following the recent changes to the company structure, combined with the
successful fund raising and acquisition of Quayside Corporate Services, the
Board of The Parkmead Group has agreed to introduce share-based incentive
schemes for its key executive directors. To this effect, the Board is today
announcing the following in respect of Niall Doran, Chief Executive of The
Parkmead Group:



Firstly, an Employee Benefit Trust (EBT) is being established which will
subscribe for 33,485,616 new ordinary 5p shares at a price of 8 pence per share
(the current market price is 7.75p). This is equivalent to 10% of the current
outstanding issued share capital of The Parkmead Group. The EBT will
subsequently make a loan to Mr Doran to purchase these shares from the EBT
itself and he will become beneficial owner of the shares. As a result, the
number of shares in issue will increase to 368,335,112.



Secondly, Mr Doran is being granted options over a further 33,485,616 shares,
with an exercise price of 8 pence. Half of these may be exercised if the share
price of The Parkmead Group trades at or above 18 pence and the other half
similarly at a price of 27 pence. The options have a ten-year lifespan and will
lapse if not exercised in that period.



The number of shares currently under option is 29,537,423 and the issue of the
above options would therefore bring the total to 63,023,039 or 17.1% of the
increased shares in issue, pursuant to the EBT transaction.



In defining the above amounts the Board has been mindful of both the ABI
guidelines in respect of the recommended amount of options which may be
available at any time as well as the need to set demanding targets for the
options to crystallise. In setting the levels of share price threshold at 125%
and 237.5% respectively above the exercise price, the Board considers that the
interests of executives and investors are fully aligned. The Board has consulted
with its major institutional shareholders, all of whom have indicated their
support for the recommendations above.



                                      Ends



Enquiries:



Madano Partnership (PR to The Parkmead Group)

Matthew Moth/Toby Wilkinson          0207 593 4000






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