RNS Number:5144U
Schroders PLC
22 January 2004

                                                                      FORM SAR 5

Lodge with a RIS or Newstrack if appropriate and the Takeover Panel.

A copy must also be sent to the company the shares of which are being sold.

Date of disclosure

22 January 2004...............................................................

DISCLOSURE UNDER NOTE 3 OF RULE 5 OF THE RULES GOVERNING SUBSTANTIAL
ACQUISITIONS OF SHARES ("SARs")

Date of sale

21 January 2004...............................................................

Sale of (name of company)

Paragon Group of Companies PLC................................................
...............

1. Class of voting shares (eg ordinary shares)

10p...............................................................

Number of shares/rights over shares sold

64,800........................Shares........................Rights

If rights over shares sold, as opposed to the shares themselves, specify nature
of rights

...............................................................

2. Resultant total holding of voting shares (and % of total voting shares in
issue)

17,869,351..........        14.983%

Resultant total holding of rights over shares (and % of total voting shares in
issue)

..........         ..........%

Total percentage

14.983%

3. Party making disclosure

Schroders plc...............................................................

4. (a) Name of person selling shares or rights over shares

Schroders plc on behalf of institutional clients on a non-beneficial basis

and, if different, beneficial owner

...............................................................



(b) Names of any other persons acting by agreement or understanding

...............................................................

Signed, for and on behalf of the party named in (3) above

...............................................................

(Also print name of signatory)

Alison Dunn ...............................................................

Telephone and extension number

020 7658 2959...............................................................

Note. The resultant total percentage holding of voting shares and rights over
shares is to be calculated by reference to the percentage held and in issue
outside treasury.

For full details of the SARs disclosure requirements, see Rules 3 and 5 of the
SARs. If in doubt, contact the Panel on Takeovers and Mergers, Monitoring
Section, Tel. No: 020 7638 0129. E-mail: monitoring@disclosure.org.uk


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