Press Release

PARAGON TECHNOLOGIES’ SI SYSTEMS PRODUCTION & ASSEMBLY BRAND AWARDED A $580,000 CONTRACT FOR AN OFF-ROAD UTILITY VEHICLE ASSEMBLY CONVEYOR SYSTEM

EASTON, PA — May 24, 2006 -- Paragon Technologies, Inc. (AMEX:PTG), a leading supplier of “smart” material handling systems and “software-driven” warehouse and distribution center solutions, announced today its SI Systems’ Production & Assembly brand was awarded a $580,000 contract to provide an automated conveyor system to be used in the manufacture and assembly of off-road utility vehicles. The contract is with a global manufacturer of agricultural machinery, compact construction equipment, and turf equipment. Their extensive line of vehicles and equipment, marketed to commercial as well as residential buyers, is well known for its high performance and maneuverability. The system will be installed in a newly renovated factory in Gainesville , Georgia and is expected to be operational by December. Detailed terms of the contract were not disclosed.

SI Systems’ proprietary LO-TOW ^®, a chain-based towline conveyor system, will transport ergonomically designed carriers used to move the vehicle frames through multiple assembly stations and inspection areas to completion.

Joel Hoffner, President and CEO of Paragon Technologies, commented, “As the market for industrial and residential utility vehicles of all types continues to grow, creating demand for increased production capacity, our expertise in designing and installing ergonomical and reliable assembly systems is helping us capture a wide variety of new customers.”

Paragon’s SI Systems’ Order Fulfillment and Production & Assembly technologies improve productivity, efficiency, and operational accuracy at Fortune 1000 companies and United States Government installations.

 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, Oshkosh Truck, Honda, CVS Pharmacy, Maybelline, and Walgreens.