Director Shareholding

Paragon Group Of Companies PLC
9 July 2004


                                 SCHEDULE 11

          NOTIFICATION OF INTERESTS OF DIRECTORS AND CONNECTED PERSONS


1)  NAME OF COMPANY

    THE PARAGON GROUP OF COMPANIES PLC


2)  NAME OF DIRECTOR

    JOHN HERON


3)  Please state whether notification indicates that it is in respect of
    holding of the shareholder named in 2 above or in respect of a
    non-beneficial interest or in the case of an individual holder
    if it is a holding of that person's spouse or children under the
    age of 18 or in respect of an non-beneficial interest

    DIRECTOR PERSONALLY


4)  Name of the registered holder(s) and, if more than one holder, the
    number of shares held by each of them. (If notified)
     
    AS ABOVE


5)  Please state whether notification relates to a person(s) connected
    with the Director named in 2 above and identify the connected person(s)

    DIRECTOR PERSONALLY


6)  Please state the nature of the transaction. For PEP transactions
    please indicate whether general/single co PEP and if discretionary/non
    discretionary

    EXERCISE OF SHARE OPTIONS AND SALE OF SHARES


7)  Number of shares/amount of
    stock acquired

    125,000


8)  Percentage of issued Class

    0.104%


9)  Number of shares/amount
    of stock disposed

    125,000


10) Percentage of issued Class

    0.104%


11) Class of security

    ORDINARY SHARES


12) Price per share

    SEE BELOW


13) Date of transaction

    9 JULY 2004


14) Date company informed

    9 JULY 2004

    
15) Total holding following this notification

    5,600

    
16) Total percentage holding of issued class following this notification

    0.0047%


     IF A DIRECTOR HAS BEEN GRANTED OPTIONS BY THE COMPANY PLEASE
                    COMPLETE THE FOLLOWING BOXES

17) Date of grant



18) Period during which or date on which exercisable



19) Total amount paid (if any) for grant of the option



20) Description of shares or debentures involved: class, number.



21) Exercise price (if fixed at time of grant) or indication that price
    is to be fixed at time of exercise



22) Total number of shares or debentures over which options held
    following this notification



23) Any additional information

    SALE OF SHARES TO FINANCE PROPERTY INVESTMENT



24) Name of contact and telephone number for queries

    JOHN G GEMMELL
    0121-712-2075


25) Name and signature of authorised company official responsible for
    making this notification


    Date of Notification                                 

    9 JULY 2004


JOHN HERON

Exercise of Options:

80,000 @ £1.475
30,000 @ £1.47
15,000 @ 1.485


Sale of Shares:

125,000 @ £3.25848



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