PKW Parkwood Hldgs.

    Parkwood Holdings plc                             

("Parkwood" or "The Group")

                             TRADING STATEMENT AND                             

                       ANNOUNCEMENT OF NEW CONTRACT WINS                       

Trading Statement

Parkwood Holdings plc is pleased to provide an update on trading performance
for the year ended 31st December 2002. Profits before tax for the year are
expected to be in line with market expectations at around �1.4m (before
amortisation of goodwill), on an increased turnover of �45 million.

The Group's two main divisions have performed well in the year, with Glendale
maintaining its margin on increased turnover, while Parkwood Leisure delivered
another significant improvement in margins. Although the outcome for the year
was satisfactory, performance was held back by a disappointing performance in
Parkwood Healthcare.

The Group has made significant progress in securing its position for 2003 and
as a result enters 2003 with a record forward order book of �166 million, an
increase of more than 10% over the year. Parkwood enters 2003 with gearing of
around 50% and interest cover of over 10.

Contract Wins / Business Update

PFI / PPP

Parkwood is pleased to announce that since the interim results were announced
it is part of consortia that have been appointed as preferred bidders for two
more leisure PFI (Private Finance Initiative) contracts. The first of these is
with Breckland District Council (in Norfolk) and is expected to lead to an
operating contract for Parkwood Leisure with an initial annual value of �1.5
million and a duration of 25 years.

The second preferred bidder award relates to a project with the London Borough
of Croydon, which is expected to lead to the award of a contract to Parkwood
Leisure with an initial annual value around �3.0 million. It is expected that
this contract will have a duration of around 27 years.

It is hoped that both the above projects will reach financial close during
2003, although it is unlikely that they will contribute greatly to turnover or
profits in this year. In addition, the Group is still pursuing financial close
on the previously announced leisure PPP (Public Private Partnership) contract
with the London Borough of Bexley. It was previously hoped that this contract
would be signed in 2002, but financial close is now anticipated in the first
quarter of 2003. Owing to the Group's funding joint venture with Barclays
European Infrastructure Fund (Leisureplan), it is expected that the Group will
be able to comfortably finance its equity commitment to these projects within
its existing banking facilities.

It should be noted that the Group has to date already signed three PFI
contracts, with the MoD contract at the Defence Animal Centre in Melton Mowbray
having become fully operational in January 2002 and performed in line with our
expectations for the first year. Parkwood Leisure secured its first income
stream from PFI in June 2002 with a facilities management contract with the
Mulberry School for Girls in the London Borough of Tower Hamlets. This contract
is also performing to expectations. The Group's first new build leisure PFI
contract is progressing well, with a new leisure facility at Crosby in
Merseyside due to be opened on schedule in mid February 2003. Pre-opening sales
of memberships on this contract are ahead of schedule.

Glendale

As outlined in the interim results, the various green businesses of the Group
were brought together under the Glendale brand in September 2002. I am able to
report that this already appears to have had some impact in increasing the
profile of Glendale in its markets, with Grounds Management contracts having
recently been awarded by the London Borough of Camden and Surrey County
Council, while the Glendale Golf business got off to a good start with the
award of a management contract for a municipal golf course in the Nottingham
area which commenced on 1st December 2002.

In addition, eight Glendale contracts have been extended since the interim
results, including a five year extension of the Grounds Management contract
with Warwick District Council. This has removed a great deal of uncertainty
about Glendale's medium term future. Glendale also awaits the outcome of
several significant new business tenders submitted in the last few months of
2002.

Finally, during December 2002, Glendale also made a small acquisition of an
arboricultural business based in Sussex. The total consideration for this
acquisition was �145k. It is hoped that this acquisition will enable Glendale
to expand its business into the Southern home counties, an area in which it was
not previously represented.

Parkwood Leisure

This business (formerly known as Glendale Leisure) was re-branded in September
2002 to reflect the significant differences between local authority leisure
management and the green businesses within Glendale. Parkwood Leisure performed
well in the second half and commenced a new catering contract in Weston Super
Mare in November, which is expected to have an annual turnover of around �1
million and a contract duration of ten years.

Most current activity in Parkwood Leisure revolves around assisting the Group's
PFI unit in reaching financial close on the three leisure PFI / PPP contracts
now at preferred bidder stage, whilst also ensuring a successful start on the
Crosby Leisure PFI operational phase. Successful financial close of the various
PFI/PPP contracts should generate a rapid increase in turnover for Parkwood
Leisure in 2003 and beyond.

Parkwood Healthcare

As outlined above, results in Parkwood Healthcare during 2002 were
disappointing. The problems primarily related to the National Ambulance Service
business, where action has now been taken to improve performance and it is
expected that results will be significantly better during 2003.

The Nursing Agency business performed steadily during the year and was pleased
to secure its place on the second stage of the London Agency Project, which
should ensure that turnover in the Nursing Agency is secure beyond the
implementation of this phase in April 2003.

Summary

As predicted at the beginning of the year, 2002 represented a year of
consolidation for the Parkwood Group after the significant step forward in its
financial results in 2001. Investment has been made during the year in the
Group's PFI unit, as well as increased marketing of the Glendale brand. It is
expected that the former will bear fruit with the signature of the three PFI
contracts now at preferred bidder stage, while recent business wins in Glendale
suggest that the latter investment has also been worthwhile.

Parkwood is now well placed to move turnover forward towards �50 million in
2003, which should bring with it a resumption of profit growth. A further
update on progress will be provided with the Group's preliminary results for
the year to 31st December 2002, which are expected to be released on Monday
17th March 2003.

For further information please contact:

Parkwood Holdings plc

Tony Hewitt, Executive Chairman 01772 627111

Doug Eadie, Group Finance Director 07710 652572

Notes for Editors;

Parkwood Holdings plc specialises in providing outsourced service to the public
sector across England and Wales under long term contracts. Its three main areas
of operation are as follows:

  * Glendale - The management of parks and open spaces for a predominantly
    local authority client base. This operation is currently being expanded
    into related "green" businesses under the "Think Green - Think Glendale"
    logo.
   
  * Parkwood Leisure - The management of a diverse range of leisure facilities,
    again predominantly for local authority clients. This Division is also the
    beneficiary of most of the Group's contracts won under the PFI procurement
    process.
   
  * Parkwood Healthcare - The provision of non emergency patient transport to
    NHS Trusts under the "National Ambulance Service" banner, together with the
    provision of nurses on an agency basis to a similar client base.
   




END

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