Paragon Technologies' Ermanco Brand Awarded a $725,000 Contract

EASTON, Pa., Jan. 31, 2005 -- Paragon Technologies, Inc. (AMEX:PTG) , a leading supplier of "smart" material handling solutions, including systems, technologies, products and services, announced today that its Ermanco brand has received an order for approximately $725,000 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. The system is one of several that Ermanco has supplied to this repeat customer over the past several years. Terms of the contract were not disclosed.

Len Yurkovic, President and CEO of Paragon Technologies, states, "We are extremely pleased that this repeat customer has again entrusted Ermanco with another important project. Our entire team is committed to the successful implementation of this project and, ultimately, to our client's success."

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 have included the United States Postal Service, General Motors, IBM, BMG, DaimlerChrysler, Ford, Peterbilt, Harley-Davidson, Walgreens, and Clark Equipment.

Cautionary Statement. Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Commission rules, regulations and releases. Paragon intends that such forward-looking statements be subject to the safe harbors created hereby. Among other things, the forward-looking statements regard Paragon's earnings, liquidity, financial condition, review of strategic alternatives, and other matters. Words or phrases denoting the anticipated results of future events, such as "anticipate," "does not anticipate," "should help to," "believe," "estimate," "is positioned," "expects," "may," "will," "is expected," "should," "continue," and similar expressions that denote uncertainty, are intended to identify such forward-looking statements. Paragon's actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such "forward-looking statements:" (1) as a result of factors over which Paragon has no control, including the strength of domestic and foreign economies, sales growth, competition, and certain cost increases; and (2) if the factors on which Paragon's conclusions are based do not conform to its expectations.

This press release and prior releases are available at http://www.ptgamex.com/.