PARAGON TECHNOLOGIES’ SI SYSTEMS PRODUCTION & ASSEMBLY BRAND AWARDED A $560,000 CONTRACT FOR AN AUTOMATED ASSEMBLY CONVEYOR SYSTEM
EASTON, PA — October 31, 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 Production & Assembly brand received an order totaling $560,000 to design, build, and install an automated conveyor system for an undisclosed manufacturer of single cylinder, non-automotive engines. Terms of the contract were not disclosed.
The assembly conveyor system will be installed at a plant in Mexico, adjacent to a similar SI Systems’ conveyor being used for the final assembly of a variety of recreational vehicles. The manufacturer will assemble its extensive line of high-performance, four-stroke engines for its Mexican recreational vehicle assembly line, as well as for shipments to recreational vehicle assembly plants at other North American locations.
Joel Hoffner, President and CEO of Paragon Technologies, said, “The ergonomic design of SI’s Production & Assembly Systems brand assembly conveyor technologies is being widely embraced by companies worldwide. This particular order is from a European manufacturer, and the system is being installed at a plant in Mexico, on a site next to the Canadian-based company that manufactures the recreational vehicles. This shows how globalization is changing the business landscape in the manufacturing industry, and we are pleased to be part of that trend.”
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 in manufacturing operations and order fulfillment applications. One of the top material handling systems suppliers worldwide, SI Systems leading clients have included the United States Postal Service, BMG, Peterbilt, Honda, CVS Pharmacy, Maybelline, and Walgreens.
About Penn Valley Group
Penn Valley Group (PVG) acting as an “agent for change,” works with management teams and Boards seeking to achieve strategic business enhancement in the areas of financial performance, corporate development, business strategy, and merger and acquisitions. PVG provides expertise to companies in their effort to enter a period of “breakout growth” and profitability. PVG also acts as a sponsor for leveraged buyouts of mid-market business in tandem with incumbent management teams. Contact: Bruce Luehrs, Managing Partner, 610-977-2771, bruce@pennvalleygroup.com/www.pennvalleygroup.com.
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.
