Directorate Change

Paragon Group Of Companies PLC
11 July 2006



                               DIRECTORATE CHANGE
                               ------------------

Jonathan Perry, 66, Chairman of The Paragon Group of Companies PLC since 1992,
has announced his intention to retire as Chairman and as a director at the
Annual General Meeting on 8 February 2007. Mr Perry will be succeeded as
Chairman by Robert (Bob) Dench, 56, who joined the Board in 2004 as a
non-executive director.

Jonathan Perry led the recovery of the Group, then National Home Loans, from its
financial difficulties of the early 1990s and the Board expresses its thanks to
him for his consistently outstanding performance and contribution.

Bob Dench was appointed to the Board as a non-executive director in September
2004. He previously held various positions with Barclays where, following a
number of overseas appointments, he returned to the UK and served on the boards
of Barclays' Retail Financial Services and Private Client businesses. He played
a leading role in Barclays' business development activities and was Managing
Director of Barclays' General Insurance, Life and Mortgage businesses prior to
leaving the organisation at the end of 2003. He has considerable experience of
devising and implementing business strategies and, having led highly regulated
businesses for a number of years, he also has significant expertise in
compliance and corporate governance matters.

Jonathan Perry said 'My decision to retire at the forthcoming AGM has not been
an easy one but I feel that, since I will be 67 by that time, it will be an
appropriate time to hand over responsibility. The last fourteen years have been
tremendously fulfilling and meeting the many challenges we have encountered,
particularly in the first three years, paved the way for the success the Group
enjoys today. I am delighted that the Board has agreed unanimously that Bob
Dench should be my successor. Bob will be a first class chairman and his
considerable experience in the financial sector makes him eminently suitable for
the job.'

Nigel Terrington, Chief Executive, said 'It has been a pleasure to work with Jon
Perry. We have faced many challenges together over the years and Jon, with his
professionalism, determination and tenacity is a considerable asset to the
Group. We will all miss his involvement and we wish him well for an enjoyable
and fulfilling retirement. Bob Dench has made a valuable contribution to the
Board since his appointment as a non-executive director in 2004. His engaging
style, professionalism and financial sector experience will ensure a smooth
hand-over from Jon. I and the Board look forward to working with Bob as
chairman.

Bob Dench said, 'When I joined the Paragon Board in 2004 I was immediately
impressed by the way the Group had positioned itself for what became a step
change in its scale without any compromise in respect of lending quality. During
his 14 years as Chairman of Paragon Jon Perry has built a very focused business
run by a highly competent and innovative management team. I feel very privileged
to have been asked to succeed as the Chairman of such a vibrant business and
look forward to guiding Paragon to continued growth.'

Enquiries:

Jonathan Perry, Chairman
Nigel Terrington, Chief Executive
0121 712 2024



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