Trading Update & Acquisition Details

Parity Group PLC
17 December 1999


PARITY E-VOLUTION CONTINUES WITH WEB AND TRAINING ACQUISITIONS
STATEMENT ON CURRENT TRADING FOLLOWS

Parity Group plc ('Parity') announces today that it has acquired Interactive
Developments Limited, a UK web service company, and Comtec Computer Training
Limited, a leading UK training company. The total consideration for both
transactions is £15.7m, to be financed by the issue of 862,575 Parity shares
to the value of £2.9m, £8.7m cash from current facilities, loan notes of
£2.3m, together with a further 530,814 Parity shares to the value of £1.8m to
be issued to the vendors over the next two years. In addition, one of the
vendors of Interactive Developments Limited has subscribed £1.57m for the
issue of 464,464 Parity Group shares. Application has been made for the above
shares to be admitted to the official list and dealings are expected to
become effective today. Taken together, the two niche acquisitions are
expected to enhance earnings next year, before goodwill amortisation.

A year ago Parity announced its strategic redirection towards e-business and
high value-added IT services. In April the intranet specialist, TMS, was
acquired by Parity Solutions. Today's two acquisitions will enhance Parity
Solutions' training business and extend its fast-growing e-business client
base, further establishing its position as a leading UK web consultancy.

Interactive Developments
Interactive Developments Limited is one of the leading web architects in the
UK with a client list that includes Chase Manhattan, Dixons, Merck, Tate &
Lyle and Tesco. The company has forecast revenues of £1.9m in the year to 31
December 1999. Parity will pay a total of £8.8m for the business, comprising
cash of £4.0m, a loan note of £1.575m and Parity shares to the value of
£1.425m on completion, together with a further £1.8m of shares (based on the
current share price) over the next two years.

The company has over 50 professional staff whose skills include consultancy,
design, development and integration, covering all aspects of interfacing to
the world wide web. All management and staff will remain with the company.
The combined e-business skills of Interactive Developments and Parity
Solutions, together with Parity's long-established track record in systems
integration, produce a company capable of delivering end-to-end internet
solutions.

Comtec
Comtec Computer Training Limited is a leading UK Microsoft and Lotus
authorised training provider and will extend substantially Parity Training's
market coverage in the delivery of new e-business enabling technologies such
as Windows 2000 and Lotus Notes Domino 5.0.  For the year to 31 May 1999,
Comtec's revenues and profits before tax were £7.5m and £0.7m respectively.
Parity will pay a total of  £6.88m for the business on completion, comprising
Parity shares to the value of £1.5m, loan notes of £750,000 and cash of
£4.63m. Apart from the vendor, all 120 staff will remain with the company.
The combined training businesses will have revenues of over £23m with
training facilities in London & the South East, Belfast, Bristol, Birmingham,
Leeds and Manchester.
     
Trading update
Group profit before tax, goodwill and exceptionals is expected to be higher
in the second half of 1999 than in the first six months of the year. The
Group's solutions and international consultancy businesses, which now make up
some 70% of operating profits, have traded well in the second half. The UK
agency has seen a decline in revenues due to the short-term Y2K lockdown and
second half profits are going to be lower than in the first half of the year.
This division is looking for good growth and improved margins as the market
picks up next year and to this end is investing in management, marketing and
e-commerce processes.
     
The Group has made significant progress in its strategic redirection in 1999.
This has resulted in the Group incurring exceptional costs of some £2.5
million in 1999. These costs include the financial restructuring approved by
shareholders mid-year, corporate finance costs, the departure of the previous
management and the recruitment of new executive directors.

Commenting on the acquisitions, Parity Chairman Philip Swinstead said, 'We
are pleased with the continuing good performance of our solutions and
international consultancy businesses, and are positive about the future
prospects for our UK agency. Next year is likely to be a year of two halves
for the industry, with market demand growing faster in the second six months.
The two acquisitions announced today show the Group's determination to
strengthen its technological base, anticipate future market trends and
participate fully in the consequent growth.'


For further information, contact

Philip Swinstead, Chairman, Parity Group plc             Tel: [phone]
Ray King, Group Finance Director, Parity Group plc       Tel: [phone]
Andrew Fenwick, Brunswick Group Limited                  Tel: [phone]