SI Systems News

PARAGON TECHNOLOGIES AWARDED A $400,000 CONTRACT FROM AN OFFICE SUPPLIES INDUSTRY LEADER

EASTON, PA, February 9, 2006 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling systems and “software-driven” warehouse and distribution center solutions, announced today that its SI Systems’ Order Fulfillment brand received an order totaling approximately $400,000 to modify and enhance an existing SI Systems proprietary DISPEN-SI-MATIC ® Order Fulfillment system to handle various package sizes at three different distribution centers for one of the world’s largest sellers of office supplies. Detailed terms of the contract were not disclosed.

Jack Lehr, Vice President of Paragon Technologies, commented, “This order demonstrates the importance of customer relationships. We appreciate the trust that this repeat customer has placed in us to provide for automated selection of office supplies in their distribution center. We are continuing our strong marketing efforts and believe that the innovation associated with our automation solutions for distribution applications will be an important factor in our customer’s success. We look forward to continuing market growth from current and new customers of SI Systems’ Order Fulfillment brand.”

Paragon’s SI Systems’ Order Fulfillment and Production & Assembly technologies drive productivity at Fortune 1000 companies and the United States Government.

- # # # -

SI Systems, a Paragon Technologies brand, is a leading order fulfillment systems integrator designing, engineering, and integrating systems for high-volume, full- or split-case, item-oriented picking and distribution. The company's technologies are powered by SINTHESIS, its proven, proprietary software that manages and optimizes planning, warehousing, inventory, routing, order fulfillment, and distribution. SI Systems' innovative fulfillment and conveyance technology includes Dispen-SI-MaticT, an automated order picking and fulfillment technology for high-volume selection of individual items. The corporate website for SI Systems, headquartered in Easton, Pennsylvania, can be found at www.sihs.com