Director Shareholding

Paragon Group Of Companies PLC
19 December 2003


Letter RNS

                              DIRECTOR SHAREHOLDING

On 18 December 2003 The Paragon Group of Companies PLC granted the following 
options over 10p ordinary shares to certain directors of the Company under the
Executive Share Option Scheme:

Director        Options granted     Exercise price (£)     Exercise period     Total options now held

J P L Perry       58,997                 3.39               18/12/06 - 18/12/13     1,294,064
N S Terrington    98,083                 3.39               18/12/06 - 18/12/13     1,688,123
N Keen            73,746                 3.39               18/12/06 - 18/12/13     927,746
J A Heron         41,298                 3.39               18/12/06 - 18/12/13     502,140
P Pandya          41,298                 3.39               18/12/06 - 18/12/13     249,719

Furthermore, the following awards were granted under the Paragon Performance
Share Plan ('PPSP'):

Director        Award granted       Exercise period        Total awards new held

J P L Perry       31,250              18/12/06 - 18/3/07          133,224
N S Terrington    51,953              18/12/06 - 18/3/07          211,163
N Keen            39,063              18/12/06 - 18/3/07          154,853
J A Heron         21,875              18/12/06 - 18/3/07          76,700
P Pandya          21,875              18/12/06 - 18/3/07          78,893


Under the terms of the PPSP these awards will become exercisable provided the 
Company's total shareholder return over the three year period commencing with 
the date of grant is at or above the medium TSR for a comparator group of 
companies making up the FTSE All Share Banks and Speciality and Other Finance
Sector.  The extent to which the shares can be exercised will be dependent upon
where the company is ranked, with 25% being exercisable for median performance,
rising to 100% for performance on or above the upper quartile.

Enquiries:

John G Gemmell,
0121 712 2075


Letter from  Paragon Group of Companies PLC




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