PARAGON TECHNOLOGIES' SI SYSTEMS BRAND RECEIVES ORDER FROM OFFICE DEPOT FOR AN AUTOMATED ORDER SELECTION SYSTEM
- - - - -

EASTON, PA — December 30, 2002 -- Paragon Technologies, Inc. (AMEX: PTG), a leading deliverer of "smart" material handling solutions, including systems, technologies, products and services, today announced that its SI Systems brand received an order from Office Depot to design, build, and install a state-of-the-art automated order selection system. The system will be installed in the Office Depot distribution center at Signal Hill, California, and will incorporate SI Systems' DISPEN-SI-MATICT technology.

Bill Johnson, President and CEO of Paragon Technologies, states, "We are extremely pleased that Office Depot has selected SI Systems to provide material handling automation for this very important project. The office supply market segment represents a great opportunity for SI Systems to work together with this key customer. We believe that we can be an important factor in their success."

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.

---

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.

---