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PARAGON TECHNOLOGIES ANNOUNCES RESULTS OF
SPECIAL MEETING OF STOCKHOLDERS

EASTON, PA - August 4, 2005 -- Paragon Technologies, Inc. (AMEX: PTG), a leading supplier of "smart" material handling solutions, including systems, technologies, products and services, today announced the results of the vote taken at its Special Meeting of Stockholders held in Berwyn, Pennsylvania yesterday.

 

Eighty-one percent of all of the outstanding shares of Paragon Technologies, Inc. were voted at the Special Meeting of Stockholders. As a result of the voting, the stockholders of the Company approved the sale of substantially all of the assets of Ermanco Incorporated. The closing of sale is scheduled to take place on August 5, 2005.

 

No other proposals were presented for action at the Special Meeting of Stockholders.

 

Len Yurkovic, President and CEO of Paragon Technologies, states, "We are pleased with the support our stockholders demonstrated in approving management's recommendation to complete the sale of substantially all of the assets of Ermanco Incorporated. We continue to pursue strategies intended to maximize stockholder value."

About Paragon Technologies

Paragon Technologies is a leader in integrating material 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. One of the top material handling systems suppliers worldwide, Paragon's leading clients have included the United States Postal Service, General Motors, BMG, Johnson & Johnson, Ford, Peterbilt, Harley-Davidson, and Walgreens.


Cautionary Statement. Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Commission rules, regulations and releases. Paragon intends that such forward-looking statements be subject to the safe harbors created hereby. Among other things, the forward-looking statements regard Paragon's earnings, liquidity, financial condition, review of strategic alternatives, and other matters. Words or phrases denoting the anticipated results of future events, such as "anticipate," "does not anticipate," "should help to," "believe," "estimate," "is positioned," "expects," "may," "will," "is expected," "should," "continue," and similar expressions that denote uncertainty, are intended to identify such forward-looking statements. Paragon's actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such "forward-looking statements:" (1) as a result of factors over which Paragon has no control, including the strength of domestic and foreign economies, sales growth, competition, and certain cost increases; and (2) if the factors on which Paragon's conclusions are based do not conform to its expectations. This press release and prior releases are available at www.ptgamex.com.