Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

The Paragon Group of Companies PLC

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

Yes

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

Prudential plc group of companies

4. Full name of shareholder(s)  (if different from 3.):iv

See schedule below

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

01 March 2012

6. Date on which issuer notified:

02 March 2012

7. Threshold(s) that is/are crossed orreached: vi, vii

See item 13

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

GB00B2NGPM57

15,045,435

15,045,435

14,889,621

14,824,053

65,568

4.93%

0.02%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

14,889,621

4.95%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Prudential plc (parent Company)

The Prudential Assurance Company Limited (wholly owned subsidiary of Prudential Plc)

Proxy Voting:

10. Name of the proxy holder:

N/A

11. Number of voting rights proxy holder will ceaseto hold:

N/A

12. Date on which proxy holder will cease to holdvoting rights:

N/A

13. Additional information:

This disclosure now gives our position under non-exempt rules where disclosure is required from a 3% level as our exempt holdings have dropped below 5%.

14. Contact name:

John G. Gemmell, Group Company Secretary

15. Contact telephone number:

0121 712 2075

Registered Holder

Holding

Voting Rights

% Voting Rights

Prudential plc

14,889,621

4.95

Total Notifiable Interest

Holding Type: Direct

PRUCLT HSBC GIS NOM(UK) PAC AC

14,748,983

14,748,983

PRUCLT HSBC GIS NOM(UK) PPL AC

75,070

75,070

Sub Total:

14,824,053

14,824,053

Holding Type: Indirect

JP MORGAN NOMINEES

65,568

65,568

Sub Total:

65,568

65,568

The Prudential Assurance Company Limited

14,824,053

4.92

PRUCLT HSBC GIS NOM(UK) PAC AC

14,748,983

14,748,983

PRUCLT HSBC GIS NOM(UK) PPL AC

75,070

75,070