Press Release

SI Systems Brand Receives $900,000 System Expansion Order
from Canadian Retailer

EASTON, PA — August 3, 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, received an order totaling approximately $900,000 to expand an existing system originally installed by SI in the late 1990s. SI will design, build, and install their proprietary transportation conveyor into a distribution center in Brampton, Ontario. Terms of the contract were not disclosed.

The client, one of Canada’s most shopped retailers, provides a unique mix of products and services at over 1,000 stores, which include interrelated businesses engaged in retail, financial services, and petroleum.

Bill Casey, Vice President of SI Systems, states, “Having already installed large systems for our client at their two largest distribution centers in Ontario, we are pleased that they continue to call on SI to support their expansion programs needed to handle the added volume brought on by their sales growth. We are also encouraged that our towline technologies are being utilized in a growing number of applications due to their proven reliability and ergonomically friendly design.”

SI has installed similar towline-based system solutions in hundreds of locations worldwide, including assembly plants, distribution centers for other large retail chains, military facilities, and bulk mail processing centers.

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.