Press Release

Major Automobile Manufacturer Chooses SI Systems’ CARTRAC^®

EASTON, PA — July 29, 2003 — 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 today it received orders for $340,000 for a factory automation project, utilizing SI Systems’ CARTRAC^® high-speed conveyor system.

The CARTRAC^® system will be used to expand the major automobile manufacturer’s facility for manufacturing a new body style. The project is scheduled for completion in the fourth quarter of 2003. Terms of the contract were not disclosed.

Bill Casey, Vice President of SI Systems, states, “We are extremely pleased that this exciting order from a repeat customer came from the manufacturing sector of our business. We believe manufacturers of automobiles use CARTRAC^® because of its proven reliability, flexibility, durability, and high throughput capabilities. We continue to build on the strength of our customer relationships and believe that the innovation associated with our automation solutions will continue to attract orders from existing and new customers as their requirements expand.”

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.