Callable Subordinated Notes due 2017

The Paragon Group of Companies PLC - Callable Subordinated Notes due 2017

Reset Rate of Interest As Issuer, The Paragon Group of Companies PLC announces that, in respect of the period from and including 20 April 2012 to, but excluding, 20 April 2017, the Notes bear interest at the rate of 3.7290% per annum on their principal amountIssue: The Paragon Group of Companies PLC, £120,000,000 7.00 per cent.

Callable Subordinated Notes due 2017

ISIN Number: XS0216276070Original Issue Nomin GBP: 120,000,000

Current Issue Nomin GBP: 110,000,000 Period: 20/04/2012 to 20/04/2017Rate: 3.7290%Denomination GBP: 1,000Amount payable per Denomination per annum: £37.29

For further information, please contact:

Nick Keen

Finance Director

0121 712 2060