PURCHASE OF SHARES BY EMPLOYEE TRUST

The Paragon Group of Companies PLC Employee Trust has today purchased 500,000 ordinary shares of £1.00 each in The Paragon Group of Companies PLC at £4.3062 per share.

The shares were acquired to meet awards as they mature and are exercised under The Paragon Group of Companies Performance Share Plan and Deferred Share Bonus Plan, in which the Group's executive directors and certain of the Group's senior employees have participated from time to time.

Following the purchase of the shares the total shares held by The Paragon Group of Companies PLC's various employee trusts is 1,379,075.

Enquiries:

Pandora Sharp, Group Company Secretary

0121 712 2075