Acquisition

HG Capital Trust PLC
05 April 2006




The following is the text of a press release issued by HgCapital, which manages
the investment portfolio of HgCapital Trust plc alongside those of other
institutional clients. The Trust, which is a listed investment trust giving
investors the opportunity to participate in all of HgCapital's investments, will
invest approximately £12.2 million in Paragon Healthcare Group.

HgCapital extends presence in specialist healthcare sector with the acquisition
of Paragon Healthcare Group for £322 million

London, 5 April 2006. HgCapital, the European sector-focussed private equity
investor, has acquired Paragon Healthcare Group ('Paragon') from Duke Street
Capital in a £322 million buy-out.

Paragon is a leading provider of speciality community-based residential care for
people with learning disabilities. Paragon operates more than 250 homes with
1600 places throughout the UK. Its homes provide a normal and positive lifestyle
for residents in a comfortable domestic living environment and present an ideal
platform from which people can further develop and improve their adult lives.
This community-based care is now the recognised standard for those with learning
disabilities and other complex needs.

HgCapital has significant experience and expertise in the specialist care
sector. In 2002, it acquired Castlebeck Care ('Castlebeck'), the UK's largest
independent provider of specialist healthcare and rehabilitation services for
patients with learning disabilities and severely challenging behaviours. Under
the ownership of HgCapital and management, Castlebeck has increased its capacity
by more than 60% and has developed new specialist services both for young people
and for those with autism. It has also extended its geographic reach across the
UK.

HgCapital will work with the existing Paragon management, who have invested in
the business, to grow Paragon. They see opportunities to continue to develop
services in areas where there is a lack of good quality provision.

Lindsay Dibden, Partner of HgCapital and Head of the Healthcare team commented:
'Paragon is an excellent business which provides the best possible services to a
vulnerable section of the community. We are pleased to be backing a strong
management team, all of whom remain fully committed to the business. HgCapital
already has a deep understanding of the specialist care sector which has strong
long term growth prospects.'

Douglas Quinn, Chief Executive of Paragon said:
'Our commitment to the people we support is our absolute priority. There remains
a significant demand for the specialist care services we provide, which are now
recognised as the most effective way of helping the development of people with
learning disabilities. HgCapital has a real understanding and commitment to the
sector. They will support the continued growth of our business and improvements
of the care and services we provide. We are delighted with this new
partnership.'

HgCapital was advised by Merrill Lynch (corporate finance), Linklaters (legal),
Deloitte (financial), PricewaterhouseCoopers (commercial), Willis (insurance),
Christie & Co (property valuation), and Pinder Professional and Consultancy
Services (property).

Contacts

HgCapital

Lindsay Dibden                      [phone]
Jill Ridley-Smith                   [phone]


Maitland

Suzanne Bartch                      [phone]
Peter Ogden






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