Press Release

SI Systems Announces Leonard S. Yurkovic Named
Paragon Technologies President and CEO

EASTON, PA — October 8, 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 Leonard S. Yurkovic as President and CEO. Mr. Yurkovic previously served as Paragon’s President and Chief Executive Officer from 1988 to 1999.

He replaces William R. Johnson who resigned his positions as President and Chief Executive Officer and a member of Paragon’s Board of Directors to pursue other opportunities.

In addition to being named President and Chief Executive Officer, Mr. Yurkovic will continue as Vice Chairman of Paragon’s Board of Directors. Mr. Yurkovic returned to the Company’s Board of Directors last year after retiring from the Company as Chief Executive Officer and a member of the Board of Directors in 1999. Mr. Yurkovic started with the Company in 1979 as Vice President - Finance. Throughout the 1980s, Mr. Yurkovic was appointed to several executive-level positions at the Company, having been named President and Chief Operating Officer in 1985, Managing Director of European Operations in 1987, and then President and Chief Executive Officer in 1988. Prior to his tenure at the Company, Mr. Yurkovic was Division Controller at The Harris Corporation, Champlain, New York. A former Lieutenant in the United States Navy, Mr. Yurkovic graduated from Lehigh University with his MBA in Finance and the United States Naval Academy with a B.S. in Engineering.

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.

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 includethe United States Postal Service, the United States Postal Service, General Motors, IBM, BMG, DaimlerChrysler, Johnson & Johnson, Ford, Peterbilt,Harley- Harley-Davidson, Walgreens, and Clark Equipment.