Trading Update

12 November 2004

                               Parity Group plc                                

                                Trading update                                 

In the interim announcement of 15 September 2004 Parity Group plc ('Parity' or
'the Group') emphasised that the second half for the Training Business Unit
would be reliant on the seasonal uplift in trading and the successful closure
of several large opportunities in the sales pipeline. Autumn bookings in the
public market have since fallen short of expectations and several large
expected sales for in-house training have been delayed into 2005. As a
consequence of the revenue shortfall and the fixed cost structure of a training
business, the performance of Training will not meet expectations for the full
year.

All the other Business Units are profitable, with operating profits for each of
these at or ahead of last year's levels. In aggregate, though, the Group could
produce a pre-tax loss before goodwill amortisation of approximately £2 million
for the year to 31 December 2004, including the £300,000 incremental pensions
charge announced in September, with the bulk of the shortfall relating to the
Training Business Unit.

Parity Training has been the leading player over the last three years in the
developing market for outsourced training management. In that period the
Training Business Unit has succeeded in its objective of taking market share to
move from seventh to first place in the UK in a market affected by overcapacity
and pricing pressure. Bookings for public training most recently are showing an
improving trend and are running ahead of the same period last year. In addition
the sales pipeline for large contracts in the Government and commercial sectors
is at its highest ever.

The Group is successfully winning larger, longer-term contracts for all of its
Business Units and is using its combination of skills to grow into Business
Process Management in Human Resources. Recent contract award announcements such
as with ICI have demonstrated the Group's ability to compete and succeed in
this area.

Announcement today of a new Chairman

Separately today, Parity has announced that Philip Swinstead OBE has rejoined
the Board as non-executive Chairman with immediate effect. Mr Swinstead's first
undertaking as Parity's Chairman will be to commence immediately a strategic
review of the Group and he will report back to shareholders in the Group's
preliminary results announcement in March 2005.

Commenting, Philip Swinstead said:

'We have excellent businesses with the highest calibre of people, well regarded
in all of our markets. We must build a predictable business on this platform
which performs consistently.'

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Enquiries:

Financial Dynamics                     Telephone: [phone]              
                                                                             
Giles Sanderson                                                              
                                                                             
Harriet Keen