Press Release

SI Systems Wins $1.8 Million Contract with Recreational and Utility Vehicle Manufacturer

EASTON, PA — March 14, 2005 – 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 been awarded a contract for an automated assembly conveyor, totaling approximately $1.8 million, with a worldwide manufacturer of recreational and utility vehicles. Terms of the contract were not disclosed.

“This is the second towline-based system SI has provided to this particular customer, which features our proprietary LO-TOW^® technology,” says Len Yurkovic, President and CEO of Paragon Technologies. “As a market leader in the growing recreational vehicle market, our customer is expanding capacity to meet the growing demand for its full line of utility vehicles. We are delighted to have this opportunity to once again serve our long-time and valued customer.”
Similar towline-based assembly systems have been successfully integrated by SI Systems for vehicle manufacturers, such as Case Tractor, New Holland Tractor, Oshkosh Truck, McNeilus Truck and JLG. Other installed locations include distribution centers for large retail chains, military facilities, furniture manufacturers 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.