PARAGON TECHNOLOGIES' ERMANCO BRAND RECEIVES ORDER FOR A CONVEYOR SYSTEM
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EASTON, PA — December 23, 2002 -- Paragon Technologies, Inc. (AMEX: PTG), a leading deliverer of "smart" material handling solutions, including systems, technologies, products and services, today announced that its Ermanco brand received an order for approximately $400,000. This customer is a global distributor of fasteners, hardware, and related products and services. This company has seven strategically placed distribution facilities in the United States, and Ermanco was chosen to provide a material handling system for its distribution center in Tennessee.

Ermanco updated their California facility in July of this year with another order fulfillment system. These distribution facilities carry over 10,000 standard parts in inventory, and the material handling systems allow them to efficiently pick and pack orders. Bill Johnson, President and CEO of Paragon Technologies, said, "We are pleased that our business partner and this end user have chosen Ermanco to provide this state-of-the art system. This is a valued repeat customer who has trusted Ermanco to automate their order fulfillment process."

Ermanco supplies conveyor technologies to system integrators and business partners worldwide, with services ranging from the delivery of basic transportation conveyors to turnkey installations of complex, fully automated work-in-process production lines and distribution centers.

About Paragon Technologies

Paragon Technologies is a leader in integrating materials handling systems and creating automated solutions for material flow applications. Ermanco's branded conveyor technologies and material handling solutions address the needs of the distribution, assembly, and manufacturing marketplace. SI Systems' branded technologies and material handling solutions address unit assembly handling and order fulfillment applications. Paragon Technologies' Quality Management System at its Easton, Pennsylvania location is certified to the ISO 9001 standard. The scope of the Quality Management System governs the design, manufacture, assembly, installation, and servicing of automated materials handling and distribution systems. One of the top materials handling systems suppliers worldwide, Paragon's leading clients include the United States Postal Service, General Motors, IBM, BMG, Daimler Chrysler, Johnson & Johnson, Ford, Peterbilt, Harley-Davidson, Walgreens, and Clark Equipment.

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Certain statements contained herein are not based on historical fact and are to be viewed as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words or phrases used in this News Release denoting the anticipated results of future events, such as " believe," "affords us," "grow," "will be," "will spur additional opportunities," and similar expressions that denote optimism and uncertainty, are intended to identify such forward-looking statements. SI Handling's actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such "forward-looking statements" if the factors on which their conclusions are based do not conform to their expectations.

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