Press Release

SI Systems Drives New Business with $700,000 Automotive Assembly Application

EASTON, PA – June 4, 2001 —SI Production and Assembly Systems, a branded division of Paragon Technologies Inc. (AMEX:PTG), a leading supplier of “smart” material handling solutions, including systems, technologies, products and services, announced it has signed a contract for approximately $700,000 for an automotive assembly application at a major automobile manufacturer.

This is the first application of SI Systems’ LO-TOW^® technology for high volume automotive assembly. It will be used in the production of a popular brand sports car. SI Systems strongly believes that this is a more reliable, flexible, and price effective technology than other available systems, and this installation may lead to additional future sales.

Bill Casey, Vice President of SI Systems, commented on the new business, “This is an exciting contract for SI Systems. Our sales force is seeing positive customer interest in new projects. We are continuing our strong marketing efforts and product development for both new applications and innovations.”

About SI Production & Assembly Systems
SI Production & Assembly Systems (SI), a branded division of Paragon Technologies, is a leading supplier of automated material handling solutions for manufacturing, assembly, and distribution operations. Marked with experience and innovation, SI offers smart and intelligent technology solutions to meet your production and assembly needs. As the originator of the patented towline technology, SI continues to be a market leader by offering turnkey systems designed to improve productivity, reduce costs and streamline workflow. The company is based in Easton, PA.