PARAGON TECHNOLOGIES, INC. ANNOUNCES
GROWTH STRATEGIES TO CAPITALIZE
ON ITS STRONG BALANCE SHEET

EASTON, PA, December 7, 2005 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling solutions, including systems, technologies, products and services, announced today that the Company is actively pursuing strategic acquisitions and partnerships in concert with investments in resources that support core competencies. The Company is implementing a strategy for increased growth that focuses on expanding the products and services that it offers to a wider, more diverse customer base.

Joel Hoffner, President and CEO Elect, stated, “The funds realized from the August 2005 sale of Ermanco Incorporated, have provided the Company with an opportunity unprecedented in the Company’s history. This transaction enables a significant redeployment of assets to capitalize on the needs and opportunities of our markets. What’s more, we currently have a strong and revamped management team in place to create a sustained growth pattern that builds on our experience and customer base in the markets that we serve. ”

The sale of Ermanco was the first major step in Paragon’s Board of Directors review of strategic alternatives. The sale allows the Company to focus its efforts and redirect its assets to potentially higher growth sectors, including markets served by the Company’s Order Fulfillment and Production & Assembly Systems branded technologies. Paragon’s Board of Directors continues to review and consider alternatives intended to maximize stockholder value, including other transactions that could provide Paragon’s investors with improved liquidity opportunities. While the Company routinely engages in discussions over such alternatives or other transactions and from time to time enters into non-disclosure agreements and non-binding letters of intent, presently there are no definitive agreements in place with respect to any such alternatives or other transactions.

SI Systems’ Order Fulfillment Systems focuses on providing intelligently designed system integration services with enhanced capabilities that include sophisticated turnkey software and a broad range of hardware products. This market unit develops solutions to fulfill orders in a wide range of distribution centers, ranging from health and beauty aids to entertainment products in the music and computer fields. The Company has a well established clientele in mail order operations, wholesale drug and chain store drug distribution centers, and numerous other advanced warehouse management processes.

The Company’s Production & Assembly Systems is a market leader in serving customers in selected niches seeking horizontal transport of unit load products. Its LO-TOW ® Ergonomic Towline Vehicle ™ employs RFID (Radio Frequency Identification) technology to impart ergonomics and other productivity capabilities to the production of all types of products across the transportation and equipment spectrum. Additionally, this product line is installed in numerous distribution facilities, ranging from the Defense Logistics Agency to the U.S. Postal Service. Paragon’s high precision CARTRAC ® product line has a well established customer base in the appliance and automotive industry, with new applications possible in the radiation technology and munitions fields, where the need for precision guidance is paramount.

Hoffner noted that Paragon’s SI Systems’ Order Fulfillment and Production & Assembly Systems branded technologies drive productivity for Fortune 1000 companies and the United States government, and that its client base, management structure, and balance sheet provide a strong foundation for future growth. “We are committed to build revenues and profits through a disciplined approach that builds profits and shareholder value.”

About SI | SIgnificant Difference | SINTHESIS | Services
Technology | News | Media Library | Contact SI | Industry Links
© 2007 SI Systems