PARAGON TECHNOLOGIES’ SI SYSTEMS
ORDER FULFILLMENT BRAND

RECEIVES A SYSTEM EXPANSION ORDER TOTALING $600,000

EASTON, PA — September 27, 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 $600,000 to relocate and expand an existing automated order fulfillment system originally installed by the Company.  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.  The customer is a leading manufacturer of vision care products.  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 our customer trusts us to modernize their operations by utilizing our proprietary technologies.  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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Cautionary Statement.  Certain statements contained herein are not based on historical fact and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Commission rules, regulations and releases.  Paragon intends that such forward-looking statements be subject to the safe harbors created hereby.  Among other things, the forward-looking statements regard Paragon’s earnings, liquidity, financial condition, review of strategic alternatives, and other matters.  Words or phrases denoting the anticipated results of future events, such as “anticipate,” “does not anticipate,” “should help to,” “believe,” “estimate,” “is positioned,” “expects,” “may,” “will,” “is expected,” “should,” “continue,” and similar expressions that denote uncertainty, are intended to identify such forward-looking statements.  Paragon’s actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such “forward-looking statements:” (1) as a result of factors over which Paragon has no control, including the strength of domestic and foreign economies, sales growth, competition, and certain cost increases; and (2) if the factors on which Paragon’s conclusions are based do not conform to its expectations.  Furthermore, achievement of the objectives of the Company following the sale of Ermanco is subject to risks associated with business disruption resulting from the announcement of the sale and other risks outlined in Paragon’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2004 and the most recent quarterly report on Form 10-Q for the quarter ended June 30, 2005.