Disposal

Paragon Group Of Companies PLC
26 October 2004


                       DISPOSAL OF NHL REVERSIONS LIMITED

The Board of The Paragon Group of Companies PLC announces that it has disposed
of the entire share capital of NHL Reversions Limited for £2.04m, payable in
cash by Sovereign Reversions plc, an AIM listed Home Reversions company. Of
the consideration, approximately £0.9m represents a profit on disposal. NHL
Reversions comprises a portfolio of 27 home reversions originated in the early
1990s. Paragon has disposed of its interest because the activity is non-core,
the portfolio's scale makes administration uneconomic for Paragon and the
ownership structure does not fit with Paragon's desire to securities all
receivables.

Enquiries:


Nick Keen, Finance Director 
0121 7122060
 




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