PARAGON TECHNOLOGIES’ SI SYSTEMS BRAND RECEIVES A SYSTEMS INTEGRATION ORDER TOTALING APPROXIMATELY $2.6 MILLION

EASTON, PA — September 20, 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 Order Fulfillment brand received an order totaling approximately $2.6 million, which will allow one of the leading distributors of entertainment products to consolidate automated order fulfillment systems at two different distribution centers into one central distribution facility. The order fulfillment system will be controlled using the Company’s innovative SINTHESIS ™ software solutions that are designed to seamlessly integrate all the high throughput picking technologies under one software platform. Terms of the contract were not disclosed.

Len Yurkovic, President and CEO of Paragon Technologies, states, “This is an exciting order, and we are extremely pleased that this repeat customer trusts us to modernize and consolidate their operations by utilizing our proprietary DISPEN-SI-MATIC ™ and SINTHESIS ™ technologies. We continue to build on the strength of our customer relationships and believe that the innovation associated with our automation solutions for distribution applications will continue to attract orders from existing and new customers as their requirements expand. We are looking forward to continued success from Paragon’s SI Systems Order Fulfillment brand.”

About Paragon Technologies

Paragon Technologies is a leader in integrating material handling systems and creating automated solutions for material flow applications. SI Systems’ Production & Assembly and Order Fulfillment branded technologies and material handling solutions address unit assembly handling and order fulfillment applications. One of the top material handling systems suppliers worldwide, SI Systems leading clients have included the United States Postal Service, General Motors, BMG, Ford, Peterbilt, Harley-Davidson, and Walgreens.

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