Press Release

SI Systems Brand Receives $1.8 Million System Order from Johns Hopkins Hospital

EASTON, PA — August 10, 2004 – 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, has received an order to provide and install its proprietary LO-TOW^® transportation conveyor system at The Johns Hopkins Hospital in Baltimore, Maryland. The agreement is worth approximately $1.8 million.

In a novel application to be installed as part of the hospital’s ongoing construction program, SI’s LO-TOW^® transportation conveyor system will be used to transport a varied fleet of carts carrying clean linens and supplies between existing and new hospital buildings that are part of a campus redevelopment program. The Johns Hopkins Hospital, which first opened in 1889, is internationally recognized for its outstanding patient care, medical research, and teaching.

“We are delighted that such a prominent organization as The Johns Hopkins Hospital chose our SI LO-TOW^® technology for their delivery system,” says Len Yurkovic, President and CEO of Paragon Technologies. “This proven technology has been used in a similar fashion, connecting separate, adjoining buildings in warehousing or manufacturing applications, and we are excited about applying this technology to address the needs of The Johns Hopkins Hospital.”

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

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.