DIRECTOR SHAREHOLDING

On 29 September 2008 The Paragon Group of Companies PLC granted the following awards under the Paragon Performance Share Plan ("PPSP"):

Director                Award granted      Exercise period                Total awards outstanding

N S Terrington     844,051                29/09/11 - 29/03/12         1,017,811

N Keen                632,475                29/09/11 - 29/03/12         762,695

J A Heron            450,160                29/09/11 - 29/03/12         528,022

P Pandya             405,144                29/09/11 - 29/03/12         477,168

The awards will be subject to an absolute total shareholder return performance condition, whereby the increase in the net return index over the performance period, based on a share price that is equivalent on the grant date to 125 pence per share, must at least equal compound annual growth of 10%.  35% of the awards will vest for 10% compound annual growth over the performance period, increasing on a straight-line basis to full vesting for compound annual growth of 15%. The performance period is the three year period commencing on the date of grant.

Enquiries:

John Gemmell, Company Secretary

0121 712 2075

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