Holding(s) in Company - Replacement

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

EJF Capital LLC

EJF Debt Opportunities Master Fund, L.P.

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

Beltway Strategic Opportunities Fund L.P.

EJF Debt Opportunities Master Fund, L.P.

EJF Debt Opportunities Master Fund II, LP

EJF Financial Services Fund, LP

HHMI VII, L.L.C.

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

 August 21, 2015 - EJF Debt Opportunities

Master Fund, L.P.

August 24, 2015 - EJF Capital LLC

6. Date on which issuer notified:

August 25, 2015

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

5.00% - EJF Debt Opportunities

Master Fund, L.P.

8.00% - EJF Capital LLC

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

14,494,451 - EJF Debt Opportunities

Master Fund, L.P.

23,761,202 - EJF Capital LLC

15,723,340 -

EJF Debt Opportunities

Master Fund, L.P.

24,501,522 - EJF Capital LLC

5.28% -

EJF Debt Opportunities

Master Fund, L.P.

8.23% -

EJF Capital LLC

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

15,723,340 - EJF Debt Opportunities Master Fund, L.P.

24,501,522 - EJF Capital LLC

5.28% - EJF Debt Opportunities Master Fund, L.P.

8.23% - EJF Capital LLC

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

Beltway Strategic Opportunities Fund L.P. (2,732,356 shares or 0.92%)

EJF Beltway Strategic Opportunities GP, LLC (general partner)

EJF Capital LLC (sole member)

EJF Debt Opportunities Master Fund, L.P. (15,723,340 shares or 5.28%)

EJF Debt Opportunities GP, LLC (general partner)

EJF Capital LLC (sole member)

EJF Debt Opportunities Master Fund II, LP (3,492,911 shares or 1.17%)

EJF Debt Opportunities GP, LLC (general partner)

EJF Capital LLC (sole member)

EJF Financial Services Fund, LP (2,000,000 shares or 0.67%)

EJF Financial Services GP, LLC (general partner)

EJF Capital LLC (sole member)

HHMI VII, L.L.C. (552,915 shares or 0.19%)

EJF Capital LLC (Investment Manager)

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:

Notification using the total voting rights figure of

297,653,412

14. Contact name:

Pandora Sharp, Group Company Secretary

15. Contact telephone number:

0121 712 2075