Holding(s) in Company

Parity Group PLC
08 February 2006



8 February 2006

Parity Group plc ('Parity' or the 'Group')

Parity announces that on 7 February 2006 it received notification that Dominick
Company AG ('Dominick Company'), a Swiss based private bank which provides a
range of private and investment banking services, and Dominion Holdings Limited
('Dominion'), a Swiss based investment company, are now the beneficial owners
of, respectively, 12,738,936 and 55,000,000 Parity shares representing 4.4% and
19.1% of Parity's issued share capital.  These interests have arisen as a result
of the non repayment of financial facilities made available by Dominick Company
to one of its customers to acquire these shares and Dominick Company exercising
its right to take ownership of the shares itself.  Dominion subsequently
acquired 55,000,000 Parity shares from Dominick Company at a price of 6.75 pence
per Parity share and is also interested in the 12,738,936 Parity shares
beneficially owned by Dominick Company by virtue of put and call options.


The Board of Parity welcomes Dominick Company and Dominion as shareholders of
Parity.


Parity has met with the advisers to Dominick Company and Dominion who have
confirmed that Dominick Company and Dominion are supportive of the current
management of Parity.  As previously announced, Parity will be progressing
discussions with Dominick Company, Dominion and other shareholders over the
coming weeks in relation to the strengthening of Parity's balance sheet equity,
referred to in its announcement of 9 December 2005.  As at 31 December 2005,
Parity's net debt amounted to approximately £20.5 million, an increase from
£15.5 million reported as at 30 June 2005.  The increase in debt levels is due
to the on-going effect of previously announced restructuring measures including
continuing payments for surplus property, which are only now starting to be
mitigated by the sub-leases signed, the delay in the sale of the French and
German businesses and associated working capital growth and the fact that
proceeds from the US disposal will be received over a 15 month period.
Additionally, as expected, the on-going losses in the period resulted in an
operating cash outflow in the second half of 2005.  While the sale of the US
business in November 2005 and the sale of the French and German businesses in
January 2006 will reduce Group net debt by approximately £5.5 million during
2006, the continuing cash impact of the 2005 restructuring charges and working
capital investment will partially offset this, as will the anticipated
settlement of one of the Group's major supply agreements, which will be treated
as an exceptional in 2005.  This latter change of supplier is now complete and
will have a strongly positive effect on both the P&L and cashflow in future
periods.  In summary, to grow the business going forward, the Group's balance
sheet equity must be strengthened.



In a separate announcement released today, Parity is delighted to announce the
appointment of Alwyn Welch as Chief Executive.  With over 25 years experience in
the technology sector with leading sector companies such as Unisys, Cap Gemini
and Logica, he will have full day to day responsibility for the running of the
business, working alongside Executive Chairman, John Hughes.



This strengthening of the leadership team marks the end of a period of major
reorganisation, a challenging but necessary task that was required to achieve
the previously stated objectives of returning the Group to profitability and
delivering a more robust performance in the future. While it is clearly still
early in 2006, we have the objective of achieving breakeven at the pre-tax level
during the year, after taking into account the service costs of our projected
debt levels and charges under IFRS relating to pensions and incentivisation.
The proposed strengthening of the balance sheet equity will place the Group in a
strong position to grow the business from the rationalised base.



In the light of the notification, the Board of Parity continues to seek
clarification from Spearhead in relation to its intentions pursuant to its
announcement on 9 January 2006.


Enquiries:
Financial Dynamics - 020 7831 3113
Giles Sanderson
Harriet Keen
Cass Helstrip


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