PARAGON TECHNOLOGIES’ SI SYSTEMS PRODUCTION & ASSEMBLY

BRAND AWARDED A $2.8 MILLION CONTRACT FOR AN AUTOMATED

ASSEMBLY CONVEYOR SYSTEM

 

 

EASTON, PA — February 22, 2007 -- 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 $2.8 million to design, build, and install an automated conveyor system for one of the world’s largest manufacturers of automobiles. The system will be used to assemble a variety of fuel efficient V-6 engines for the automaker’s vehicle lineup, and will be installed in a plant in Mexico. The engine assembly line will be on the same manufacturing site as the automaker’s vehicle assembly operations. Terms of the contract were not disclosed.

 

Len Yurkovic, Acting CEO of Paragon Technologies, said, “The Production & Assembly Systems brand continues to develop new, ergonomically-designed solutions for leading global manufacturers of vehicles and vehicle components. Although we have installed several systems in the past for this particular customer, using different technologies, this system will be designed using our towline technology as the means of conveyance. Furthermore, the customer is changing its engine build process due to the reliability, flexibility, and ergonomic features of the product we’re providing.”
 

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.

 

 

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.