Holding in Company

Paragon Group Of Companies PLC
12 July 2001


LETTER TO COMPANY ANNOUNCEMENTS OFFICE

We have today received notification from M&G Investment Management Limited to
advise that Prudential plc and certain of its subsidiary companies now hold
15,180,290 ordinary shares of 10p each in The Paragon Group of Companies PLC.
The holding represents 12.942% of our issued capital.

LETTER FROM PARAGON GROUP OF COMPANIES PLC