Notice re Callable Subordinated Notes due 2017

Notice to holders of the £120,000,000 7 per cent. Callable Subordinated Notes due 2017

The Paragon Group of Companies PLC announces the cancellation on 23 March 2010 of £10,000,000 in nominal amount of the £120,000,000 7 per cent. Callable Subordinated Notes due 2017 (XS0216276070) (the "Notes"). 

All cancelled Notes were purchased during the year-ended 30 September 2009. 

As a result of the cancellation of the Notes described above, the aggregate nominal amount outstanding of the Notes is £110,000,000.

For further information, please contact:

John Gemmell, Company Secretary

The Paragon Group of Companies PLC

+44 (0)121 712 2075