Share Repurchase Programme

Paragon Group Of Companies PLC
04 July 2006


                     INCREASE IN SHARE REPURCHASE PROGRAMME
                     --------------------------------------

The Paragon Group of Companies PLC announces that a further £10 million is being
set aside for the repurchase of the Company's shares through the current share
repurchase programme.

To date, the Company has acquired 4,164,000 shares at a cost of approximately
£24.5 million. Including the additional £10 million announced today, a further
£15.5 million remains to be invested in the repurchase programme.

The Company set out details of its strategy for capital management in its recent
annual and interim reports. As the more capital demanding closed books have
continued to decline, both from natural run-off and from ongoing disposals, the
most recent of these being the sale of the majority of the remaining NHL book to
Stroud and Swindon Mortgage Company Limited for a total cash consideration of
£72.6 million, additional capital has been released to support the share
repurchase programme.

The Board expects to provide a further update with the preliminary results to be
announced on 22 November 2006.

Enquiries:

Nigel Terrington, Chief Executive
Nick Keen, Finance Director
0121 712 2024



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