PARAGON TECHNOLOGIES’ SI SYSTEMS BRAND LANDS $1.9 MILLION IN NEW TOWLINE CONTRACTS

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Two Vehicle Assembly Applications Comprise Total

EASTON, PA — February 15, 2005 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling solutions, including systems, technologies, products and services, announced today that its SI Systems brand has been awarded two new contracts totaling approximately $1.9 million for vehicle assembly applications for two different recreational vehicle manufacturers.  Terms of the contracts were not disclosed.

Len Yurkovic, President and CEO of Paragon Technologies, commented on these new contracts, “These orders are continued evidence of the improved quality and increased productivity that our proprietary LO-TOW^® transportation conveyor system provides for vehicle assembly applications.  We are extremely pleased that our customers have selected SI to be their partner in automation for these important projects.  We are looking forward to continued success from Paragon’s SI Systems brand.”

Similar towline-based system solutions have been installed at assembly plants, distribution centers for large retail chains, military facilities, and bulk mail processing centers.

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.