PARAGON TECHNOLOGIES’ ERMANCO BRAND AWARDED A $725,000 CONTRACT

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EASTON, PA — January 31, 2005 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling solutions, including systems, technologies, products and services, announced today that its Ermanco brand has received an order for approximately $725,000 to design and build a state-of-the-art tire and rim assembly system for just-in-time delivery of mounted tires to a major automotive manufacturer.  The system is one of several that Ermanco has supplied to this repeat customer over the past several years.  Terms of the contract were not disclosed.

Len Yurkovic, President and CEO of Paragon Technologies, states, “We are extremely pleased that this repeat customer has again entrusted Ermanco with another important project.  Our entire team is committed to the successful implementation of this project and, ultimately, to our client’s success.”

About Paragon Technologies

Paragon Technologies is a leader in integrating material handling systems and creating automated solutions for material flow applications.  Ermanco’s branded conveyor technologies and material handling solutions address the needs of the distribution, assembly, and manufacturing marketplace.  SI Systems’ branded technologies and material handling solutions address unit assembly handling and order fulfillment applications.  One of the top material handling systems suppliers worldwide, Paragon’s leading clients have included the United States Postal Service, General Motors, IBM, BMG, DaimlerChrysler, Ford, Peterbilt, Harley-Davidson, Walgreens, and Clark Equipment.