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PARAGON TECHNOLOGIES ANNOUNCES THE SALE OF ITS EASTON, PENNSYLVANIA BUILDING
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EASTON, PA — February 24, 2003 -- Paragon Technologies, Inc. (AMEX: PTG), a leading deliverer of "smart" material handling solutions, including systems, technologies, products and services, today announced the sale of its Easton, Pennsylvania building to Triple Net Investments XIII, L.P., an affiliate of J.G. Petrucci Company, Inc. ("JGPCO"). .

Significant terms of the agreement of sale include a sales price of $2,925,000 and also a leaseback of approximately 25,000 square feet of office space for five years by Paragon Technologies. As a result of the sale, the Company expects to recognize a pre-tax gain over the five-year leaseback period of approximately $2.2 million, of which approximately $1.5 million will be recognized in the current year. The sale of the property is in line with management's stated goal of increasing shareholder value.

Cash proceeds will be used to make an accelerated payment on the Company's term debt with its principal bank, which currently stands at $5,700,000.

Bill Johnson, President and CEO of Paragon Technologies, states, "The building will be used as a multi-purpose facility, and Paragon Technologies looks forward to continuing to serve our customers from this location."

Jim Petrucci commented, "Paragon is an outstanding addition to our roster of tenants. This sale and partial leaseback is a win-win - Paragon has monetized its real estate asset and JGPCO has a quality building and site to fully develop."

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.