Issue of Debt

Paragon Group Of Companies PLC
18 April 2005


Dated: 18 April 2005


                       THE PARAGON GROUP OF COMPANIES PLC

                      ISSUE OF CALLABLE SUBORDINATED DEBT



The Paragon Group of Companies PLC (the 'Company') announces that on 20th April
2005 it is to issue £120 million 7% Callable Subordinated Notes due 2017, at an
issue price of 99.347 per cent. The notes have a legal final maturity date of
20th April 2017 but can be called, at the Company's option, on 20th April 2012.

The Royal Bank of Scotland plc is acting as lead manager on the issue.

Enquiries:

Nigel S Terrington, Chief Executive Tel [phone]

Nicholas Keen, Finance Director Tel [phone]




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