Paragon Technologies' SI Systems Brand Lands $1.9 Million in New Towline Contracts

Two Vehicle Assembly Applications Comprise Total

EASTON, Pa., Feb. 15 -- Paragon Technologies, Inc. (AMEX:PTG) , a leading supplier of "smart" material handling solutions, including systems, technologies, products and services, announced today that its SI Systems brand has been awarded two new contracts totaling approximately $1.9 million for vehicle assembly applications for two different recreational vehicle manufacturers. Terms of the contracts were not disclosed.

Len Yurkovic, President and CEO of Paragon Technologies, commented on these new contracts, "These orders are continued evidence of the improved quality and increased productivity that our proprietary LO-TOW(R) transportation conveyor system provides for vehicle assembly applications. We are extremely pleased that our customers have selected SI to be their partner in automation for these important projects. We are looking forward to continued success from Paragon's SI Systems brand."

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

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/.