PARAGON TECHNOLOGIES' ERMANCO BRAND RECEIVES $1.1 MILLION CONTRACT FROM OAKLEY INDUSTRIES
- - - - -
A Tier One Automotive Sub-Assembly Manufacturing Facility

EASTON, PA — February 5, 2003 -- 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 from Oakley Industries Sub-Assembly Division, Inc. for approximately $1.1 million to design and build a state-of-the-art tire and rim assembly system for just-in-time delivery of mounted tires to a major automotive manufacturer in Wilmington, Delaware. This system is one of several that Ermanco has supplied to Oakley Industries over the past several years.

Bill Johnson, President and CEO of Paragon Technologies, states, “We are extremely pleased that Oakley Industries has again entrusted Ermanco with another important project. The automotive sector is certainly an important part of our business, and we look forward to a successful implementation.”

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.

---