Press Release

SI EXTENDS RELATIONSHIP, TALLIES $400,000 IN NEW BUSINESS
MAJOR MANUFACTURER OF SPECIALTY PACKAGING PRODUCTS

EASTON, PA — June 16, 2004 -- SI Production & 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, has received orders totaling approximately $400,000 to provide towline systems at three facilities of a major manufacturer of specialty packaging products. Specific terms of the contracts were not disclosed.

The material handling systems will be installed in facilities in New York, Texas, and California, and will incorporate SI Systems’ market-leading in-floor towline technology. The agreement expands on an ongoing relationship between SI and the client.
“Our customer is expanding, updating, and reconfiguring their existing systems to handle the increased volume of product being transported between their manufacturing plants and adjacent warehousing/distribution facilities,” says Len Yurkovic, President and CEO of Paragon Technologies. “We are pleased that our solution is able to efficiently handle their expanding capacity.”
Similar towline-based system solutions have been installed at assembly plants, bulk mail processing centers, military distribution centers, and at large retail chain warehouse locations throughout North America.

About SI Production & Assembly Unit
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 tow line technology, SI continues be a market leader by offering turnkey systems designed to improve productivity, reduce costs and streamline workflow. The company is based in Easton, PA.