Statement re Subsidiary

Paragon Group Of Companies PLC
3 September 2004



The Paragon Group of Companies PLC is pleased to announce that Mortgage Trust
Services plc, a subsidiary company, has received a 'minded to authorise' letter
following its application for permission under Part IV of the Financial Services
and Markets Act 2000 to become authorised to carry on mortgage and/or general
insurance business.

Enquiries:

John G Gemmell - The Paragon Group of Companies PLC.          Tel: [phone]
 

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