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PARAGON TECHNOLOGIES' SI/BAKER JOINT VENTURE AWARDED A $3.8 MILLION CONTRACT FOR AN AUTOMATED PRESCRIPTION FULFILLMENT SYSTEM
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EASTON, PA — February 3, 2003 -- Paragon Technologies, Inc. (AMEX: PTG), a leading deliverer of "smart" material handling solutions, including systems, technologies, products and services, today announced that its SI/BAKER joint venture was awarded a contract for approximately $3.8 million to provide an automated prescription fulfillment system at a mail order facility.

The SI/BAKER automated prescription fulfillment system will be capable of processing up to 12,000 prescriptions per shift, with a significant level of new automation. Up to 75% of all prescriptions will be automatically dispensed without human intervention, and up to 50% of all prescriptions will be automatically packed for mailing. In addition to the dispensing and packing automation, advance techniques for digital imaging and thumbprint verification will assist in the pharmacist verification process for the checking of all prescriptions. Completion of the prescription fulfillment system is scheduled for the second quarter of 2003.

Michael Jordan, President and CEO of SI/BAKER, said, "This system encompasses the highest level of technology and automation that we have ever installed. The investment being made by our customer will advance the quality and the cost effectiveness of delivering prescriptions. We are committed to designing and implementing this system and making our customer more successful."

Bill Johnson, President and CEO of Paragon Technologies, said, “This demonstrates the importance of customer relationships to SI/BAKER. With the continued increase in prescription volumes and rising health care costs, automated systems like this continue to provide SI/BAKER’s customers with high quality prescription services and improved customer service.”

About SI/BAKER

SI/BAKER, INC., a joint venture company, is the leading supplier of automated prescription fulfillment systems for high volume pharmacies. SI/BAKER has installed over 50 integrated prescription fulfillment systems, ranging in size from 1,000 to over 65,000 prescriptions per day for mail order, central fill, and specialty pharmacy applications. SI/BAKER employs advanced engineering and proven technology to create the most accurate and efficient pharmacy systems in the industry.

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.