Trading Statement

Paragon Group Of Companies PLC
26 March 2002

THE PARAGON GROUP OF COMPANIES PLC - TRADING UPDATE

The Paragon Group of Companies PLC will shortly be meeting analysts ahead of its
close period for the half year ended 31 March 2002. The following is an update
of the trading position of the Group ahead of the end of the half year and
follows the previous trading update which was announced immediately prior to the
AGM on 31 January 2002.


The Directors are pleased to report that the Group is on track for profit growth
during the period, in line with our expectations. Business volumes are
significantly ahead of the corresponding period last year.


The popularity of Paragon Mortgages as a specialist lender in the buy to let
sector is evidenced by substantially increased advances compared to the first
half last year. In addition the level of pipeline business has risen steadily
during the period, which augurs well for lending volumes in the second half of
the financial year. As a result of the level of first mortgage activity the
Group has recently launched its largest buy to let mortgage securitisation to
date.


Business activity in our consumer finance division has remained solid, with the
group maintaining the cautious credit stance that we outlined in our earlier
statements. As a result, strong growth in secured personal lending has been
balanced by a more restricted level of activity in other areas, such as
unsecured personal lending, further improving the risk weighting of the personal
loans portfolio. As a consequence we have seen no credit deterioration across
the portfolio. The consumer finance market has remained generally buoyant
throughout the period, although the used car finance market has remained
subdued.


The focus on operating costs and process efficiency outlined in the year end
statement continues and an improvement in the cost to income ratio is expected
when the results for the first six months of the year are completed.


The Board of Directors intends to announce the interim results for the six
months ended 31 March 2002 on 21 May and a full report on the progress achieved
by the Group will be issued at that time.



For further information, please contact:


The Paragon Group of Companies PLC

Nigel Terrington, Chief Executive

Nick Keen, Finance Director

Tel: [phone]



The Wriglesworth Consultancy

John Wriglesworth/Justin Strong

Tel: [phone]


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