Statement re Northern Rock

Paragon Group Of Companies PLC
14 September 2007





The Board of Paragon has noted today's statement issued by Northern Rock PLC and
its consequent impact on Paragon's share price. Having completed a £1.0 billion
securitisation on 19th July 2007 on fine terms, Paragon's new business flows are
fully accommodated within warehousing facilities with a current capacity of some
£1.8 billion, adequate at current rates of origination to fund new lending into
2008.

Moreover, Paragon has no involvement in the US mortgage market nor any
investment, directly or indirectly in US sub-prime mortgage securities, SIVs,
CDOs or similar vehicles.

In line with its normal practice, Paragon will issue a pre close trading
statement in relation to the financial year ending on 30th September 2007 on
Tuesday 18th September 2007.



For further information please contact:

John G Gemmell
Group Company Secretary
0121 712 2075




                      This information is provided by RNS
            The company news service from the London Stock Exchange