In the last two decades in areas like banking, finance and medical research privacy policies restrict the data owners to share the data for data mining purpose. This issue throws up a new area of research namely privacy preserving data mining. In this paper, we proposed a privacy preservation method by employing Particle Swarm Optimization (PSO) trained Auto Associative Neural Network (PSOAANN). The modified (privacy preserved) input values are fed to a decision tree (DT) and a rule induction algorithm viz., Ripper for rule extraction purpose. The performance of the hybrid is tested on four benchmark and bankruptcy datasets using 10-fold cross validation. The results are compared with those obtained using the original datasets where privacy is not preserved. The proposed hybrid approach achieved good results in all datasets.