Paragon Technologies' Ermanco Brand Receives $1.1 Million Contract From Oakley Industries; A Tier One Automotive Sub-Assembly Manufacturing Facility

    EASTON, Pa., Feb. 5 -- Paragon Technologies, Inc.
(Amex: PTG), a leading deliverer of "smart" material handling solutions,
including systems, technologies, products and services, today announced that
its Ermanco brand received an order from Oakley Industries Sub-Assembly
Division, Inc. for approximately $1.1 million to design and build a state-of-
the-art tire and rim assembly system for just-in-time delivery of mounted
tires to a major automotive manufacturer in Wilmington, Delaware.  This system
is one of several that Ermanco has supplied to Oakley Industries over the past
several years.
    Bill Johnson, President and CEO of Paragon Technologies, states, "We are
extremely pleased that Oakley Industries has again entrusted Ermanco with
another important project.  The automotive sector is certainly an important
part of our business, and we look forward to a successful implementation."

    About Paragon Technologies
    Paragon Technologies is a leader in integrating material handling systems
and creating automated solutions for material flow applications.  Ermanco's
branded conveyor technologies and material handling solutions address the
needs of the distribution, assembly, and manufacturing marketplace.  SI
Systems' branded technologies and material handling solutions address unit
assembly handling and order fulfillment applications.  Paragon Technologies'
Quality Management System at its Easton, Pennsylvania location is certified to
the ISO 9001 standard.  The scope of the Quality Management System governs the
design, manufacture, assembly, installation, and servicing of automated
material handling and distribution systems.  One of the top material handling
systems suppliers worldwide, Paragon's leading clients include the United
States Postal Service, General Motors, IBM, BMG, DaimlerChrysler, Johnson &
Johnson, Ford, Peterbilt, Harley-Davidson, Walgreens, and Clark Equipment.

    Certain statements contained herein are not based on historical fact and
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Litigation Reform Act of 1995 and the Securities and Exchange Commission
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