Press Release

 

PARAGON TECHNOLOGIES AWARDED A $300,000 CONTRACT TO MODERNIZE A GOVERNMENT AGENCY’S MATERIAL TRANSPORT SYSTEM

EASTON, PA — February 8, 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 its SI Systems’ Production & Assembly brand was awarded a $300,000 contract involving a major government agency’s regional processing center to modify and modernize an existing SI Systems proprietary LO-TOW ^® transportation conveyor system that the Company had retrofitted and expanded for the agency approximately five years ago. Detailed terms of the contract were not disclosed.

Bill Casey, Executive Vice President of Paragon Technologies, commented, “We are pleased that this customer continues to utilize our technologies to fulfill their expanding material handling requirements. We continue to build on the strength of our customer relationships and believe that our automation solutions will continue to attract orders from existing and new customers as their requirements evolve. We look forward to continued success and market growth from SI Systems’ Production & Assembly brand.”

Similar towline-based system solutions have been installed at vehicle and appliance assembly plants, distribution centers for large retail chains, and military facilities.

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.