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Stoke boss Tony Scholes, who also brought in Sheffield Wednesday's Glenn Whelan for £500,000 told the BBC: "We are delighted with the business that we have achieved today, especially in being able to sign Glenn and Paul."
Meanwhile, 19 year old Australian youth international Rostyn Griffiths has joined Scottish Premiership strugglers Gretna in a loan deal until the end of the season. The academy starlet also signed a new contract with Rovers which runs until 2009.
Also, youth midfielder Mamadi Keita had his contract terminated and has gone on to join German side Hamburger SV.