Paragon Technologies' SI Systems Brand Receives Orders Totaling $340,000 From a Major Automobile Manufacturer

EASTON, Pa., July 29 -- Paragon Technologies, Inc. (AMEX:PTG) , a leading supplier of "smart" material handling solutions, including systems, technologies, products and services, today announced that its SI Systems brand received orders for $340,000 for a factory automation project, utilizing SI Systems' CARTRAC(R) high-speed conveyor system. The CARTRAC(R) system will be used to expand the major automobile manufacturer's facility for manufacturing a new body style. The project is scheduled for completion in the fourth quarter of 2003. Terms of the contract were not disclosed.

Bill Johnson, President and CEO of Paragon Technologies, states, "We are extremely pleased that this exciting order from a repeat customer came from the manufacturing sector of our business. We believe manufacturers of automobiles use CARTRAC(R) because of its proven reliability, flexibility, durability, and high throughput capabilities. We continue to build on the strength of our customer relationships and believe that the innovation associated with our automation solutions will continue to attract orders from existing and new customers as their requirements expand."

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. 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.