Trading Statement

Paragon Group Of Companies PLC
19 September 2006


                       THE PARAGON GROUP OF COMPANIES PLC

                               TRADING STATEMENT
                               -----------------

The Paragon Group of Companies PLC will shortly be meeting with analysts ahead
of its close period for the year ending 30 September 2006. The following is an
update on the trading position of the Group ahead of the year end and follows
the Interim Results which were announced on 23 May 2006.

The Board expects the results for the year to 30 September 2006 to be in line
with market expectations.

Trading activity has remained strong throughout the second half of the financial
year, with the result that, for the year as a whole, lending volumes are
expected to be some 70% higher than the previous year. This lending growth is
principally attributable to our buy to let businesses, where application flows
and completed loans are significantly ahead of last year. Activity in the
consumer finance businesses remains at similar levels to last year in accordance
with our expectations.

The environment remains highly positive for the UK private rented sector. Recent
survey data published by The Royal Institution of Chartered Surveyors showed
both strong tenant demand and rental increases at a record level, supporting
continued investment by landlords. Lending statistics published by the Council
of Mortgage Lenders showed buy to let lending at record levels across the market
in the first half of 2006, some 20% above that of the second half of 2005.

Paragon continues to capitalise both on this market growth and on the
development of its lending brands, Paragon Mortgages and Mortgage Trust, with
the consequence that our share of the buy to let market has grown. The current
high level of pipeline business compared to this time last year provides
confidence that further growth will be achieved moving into the new financial
year.

The Board of Directors intends to announce the preliminary results for the year
ending 30 September 2006 on 22 November 2006 and a full report on the progress
of the Group will be issued at that time.

For further information, please contact:

Nigel S Terrington
Chief Executive - Telephone [phone]

or

Nicholas Keen
Finance Director - Telephone [phone]



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