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Paragon Technologies' SI/Baker Joint Venture Wins $3 Million Contract For Automated Pharmacy Fulfillment System

  • e-Commerce Fulfillment System To Allow Same Day Shipment Of Orders

EASTON, PA - July 12, 2000 - Paragon Technologies, Inc. (AMEX:PTG), a leader in fully automated and integrated material handling and conveyer systems, today announced that it's SI/Baker joint venture with McKessonAPS, a subsidiary of McKessonHBOC (NYSE:MCK), was awarded a contract for approximately $3 million to provide an automated e-pharmacy fulfillment system.

SI/BAKER's client will provide internet customers with prescription medications, non-prescription medications, health and beauty aids, home medical supplies and a resource for drug and health information, and will use the automated fulfillment system to provide same day shipment for prescription and non-prescription health and wellness orders.

The SI/BAKER automated pharmacy fulfillment system will have an initial capacity of 4,000 prescriptions and 11,000 health and wellness (non-prescription medications, health & beauty aids and home medical supplies) lines per shift. The fulfillment system will initially handle over 10,000 sku's and have the ability to nearly double capacity and sku count by simply adding stations. Completion of the Pharmacy Fulfillment System is scheduled for fall 2000.

SI/BAKER, INC., a joint venture company equally owned with McKessonAPS, a subsidiary of McKessonHBOC (NYSE:MCK), is the leading supplier of automated prescription fulfillment systems for high volume pharmacies. SI/BAKER has installed over 40 integrated prescription fulfillment systems, ranging in size from 1,000 to over 20,000 prescriptions per shift, for mail order, central fill and internet pharmacy applications. SI/BAKER employs advanced engineering and proven technology to create the most accurate and efficient pharmacy systems in the industry.

Bill Johnson, President and CEO of Paragon Technologies, said, "We are proud to have SI/Baker chosen to design and install the new system, and look forward to implementing similar projects at other pharma firms across the U.S. This reinforces our strong belief in automated prescription fulfillment for pharmaceutical companies as a major growth opportunity. We are absolutely committed to a successful implementation." Johnson concluded, " Paragon is steadily becoming the source for e-commerce fulfillment solutions, and our SI/Baker subsidiary continues to lead the way in the pharma world. "

With headquarters in Easton, PA, Paragon Technologies markets, designs, manufacturers, installs and services fully automated, integrated material handling systems and Ermanco conveyor systems that improve productivity in manufacturing, provide e-commerce fulfillment solutions, and increase the speed of delivery of products in most categories by companies worldwide. One of the top materials handling systems suppliers worldwide and ISO 9001 certified, Paragon's leading clients include General Motors, IBM, BMG, DaimlerChrysler, Johnson & Johnson, the U.S. Postal Service, Ford, Peterbilt, Harley-Davidson, McKesson, Walgreen, Clark Equipment and CVS.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, and certain operational 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 risks and uncertainties associated with Paragon's restructuring, including the failure to achieve anticipated operating savings, and the possibility that the restructuring charges will be greater than anticipated; (2) 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; or (3) if the factors on which Paragon's conclusions are based do not conform to its expectations.