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.

 

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, Ford, Peterbilt, Harley-Davidson, and Honda.

 

 

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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 September 30, 2005.