Three-Part Agreement

Parity Group PLC
11 December 2002


11 December 2002


  Parity outsources IT hardware and telecoms infrastructure to BT and secures
                staffing contract and joint marketing agreement


Parity Group plc, ('Parity' or 'the Group'), the IT and business services group,
announces it is to enter into a three-part agreement with BT plc ('BT').  The
first part of the agreement involves the outsourcing by Parity of its IT
hardware and telecoms infrastructure to BT.  The second part involves a contract
awarded by BT to Parity which is expected to bring £5 - 7 million of revenues to
Parity in 2003.  The third part involves an agreement by BT and Parity to pursue
joint market opportunities for Parity and BT services.

Letters of Intent have been signed with BT regarding all three parts of the
agreement and final negotiations are expected to be completed by early January
2003.

Under the outsourcing agreement, Parity will spend £15 million with BT over a
five-year period.  BT will design and manage the infrastructure to provide a
flexible, scalable IT hardware and telecoms environment for Parity's businesses
across Europe.  The contract value is broadly in line with Parity's historic IT
infrastructure costs but will allow Parity to benefit from BT's economies of
scale as well as to focus on developing its own core businesses and strengths.
Parity will retain responsibility for the management and support of both
internal and third party IT applications.

Under a separate contract with BT, Parity will take over the contracts of a
number of technical consultants currently working either through other agencies
or directly for BT Ignite, BT's business services and solutions division.
Initially, the contract is expected to be worth £5 - 7 million in revenues to
Parity in 2003.

Under the agreement to pursue joint market opportunities for BT and Parity
services, a number of specific projects have already been identified and, if
secured, are expected to contribute several million pounds worth of annual
revenues to Parity.

Ian Miller, Chief Executive of Parity, said: 'We already have a strong
relationship with BT and look forward to extending it further.  These agreements
will support the growth in our revenues and provide us with a more effective IT
hardware and telecoms infrastructure.'

Ends



Enquiries:

Ian Miller, Chief Executive                         Harriet Keen/Emma Rutherford
Alison Leyshon, Finance Director                    Financial Dynamics
Parity Group plc                                    Tel: [phone]
Tel: [phone]



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