Press Release

PARAGON TECHNOLOGIES, INC.

ESTABLISHES ALLIANCE WITH OCS INTELLITRAK, INC.

EASTON, PA — February 2, 2006 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling systems and “software-driven” warehouse and distribution center solutions, announced today that it has formed a preferred business partner alliance with OCS INTELLITRAK, Inc. of Cincinnati, Ohio. SI Systems’ Production & Assembly Systems brand will market and integrate the INTELLITRAK line of overhead conveyance products into systems designed and commissioned by Paragon’s professional staff. The technology developed and manufactured by INTELLITRAK is especially suited for applications that require clean, quiet, and safe operation, coupled with flexible, modular design.

Joel Hoffner, President and CEO of Paragon Technologies commented, “The overhead conveyance and delivery systems from INTELLITRAK will enable us to broaden and expand our opportunities in all of our targeted market sectors in concert with our growth strategy of serving a wider base of customers with more extensive product and service offerings. Our established competency and ability to take single source responsibility for complex integration projects will better serve those customers that require solutions that include both Paragon and INTELLITRAK products.”

SI Systems’ Production & Assembly Systems brand will market, install, and service the INTELLITRAK line in stand-alone applications as well as integrate it into systems, utilizing its proprietary LO-TOW ^® towline and CARTRAC ^® spinning tube conveyor products. In addition to providing systems to customers for their product assembly processes, Paragon will be able to include the overhead conveyors that bring parts directly to the production lines.

Charlie Tabler, President of INTELLITRAK added, “We’re delighted to add SI Systems to our team of systems integrators. SI Systems is well respected in the marketplace, and there is great synergy between our overhead conveyors and their technologies. The solutions that result will be cost effective and help customers streamline their operations.”

Paragon’s SI Systems’ Order Fulfillment and Production & Assembly technologies drive productivity at Fortune 1000 companies and the United States Government.

About Paragon Technologies
Paragon Technologies is a leader in integrating material handling systems and creating automated solutions for material flow applications. SI Systems’ Production & Assembly and Order Fulfillment branded technologies and material handling solutions address unit assembly handling and order fulfillment applications. One of the top material handling systems suppliers worldwide, SI Systems leading clients have included the United States Postal Service, BMG, Peterbilt, Honda, CVS Pharmacy, Maybelline, Harley-Davidson, and Walgreens.

About OCS INTELLITRAK, Inc.
OCS INTELLITRAK, Inc. manufactures overhead conveyor and material handling solutions that are used in a number of assembly, manufacturing, finishing, order picking, and distribution facilities. OCS INTELLITRAK is the proven leader because of its ability to provide diverse, efficient, and cost-effective solutions to many material handling challenges. OCS INTELLITRAK has been manufacturing and selling Overhead Conveyors in North America under an exclusive license agreement from OCS AB since 1994.

OCS INTELLITRAK is a subsidiary of LICO, Inc, which is headquartered in Kansas City, Missouri. OCS INTELLITRAK’s corporate office is located in Cincinnati, Ohio, and includes sales, marketing, design, manufacturing, and inventory. For more information about INTELLITRAK’s products and capabilities, visit http://www.intellitrak.com