Holding in Company

Paragon Group Of Companies PLC
21 December 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 
4,685,000 ordinary shares of 10p each in The Paragon Group of Companies PLC. The
holding represents 3.985% of our issued capital.


LETTER FROM: THE PARAGON GROUP OF COMPANIES PLC