Paragon Technologies' SI Systems Production & Assembly Brand Awarded a $300,000 Contract to Expand Harley-Davidson Assembly Conveyor

EASTON, Pa., March 2 -- Paragon Technologies, Inc. (AMEX:PTG) , a leading supplier of "smart" material handling systems and "software-driven" warehouse and distribution center solutions, announced today that its SI Systems' Production & Assembly brand was awarded a $300,000 contract to expand an existing assembly conveyor at the Harley-Davidson Kansas City, Missouri assembly plant. SI Systems has installed three separate assembly conveyors at the Kansas City, Missouri plant that are used to assemble various models - their Sportster(R), V-Rod(R), and Dyna(TM) brands. In addition, they have installed a large assembly conveyor system in York, Pennsylvania, which is used to fabricate their Softail(R) brand of motorcycles. Collectively, these systems have generated approximately $6.0 million of business with Harley-Davidson.

Joel Hoffner, President and CEO of Paragon Technologies, commented, "We are extremely delighted that as the demand for Harley-Davidson motorcycles continues to increase, we are commissioned to expand and reconfigure their SI Systems towline conveyor system to meet increased productivity demands. Our commitment to all of our customers is to establish life cycle partnerships, wherein we provide thought leadership and customized solutions through their evolutionary expansion process."

Similar towline-based system solutions have been installed in many types of utility and recreational vehicle assembly plants, distribution centers for large retail chains, and military and postal facilities.

Paragon's SI Systems' Order Fulfillment and Production & Assembly technologies drive productivity at Fortune 1000 companies and the United States Government.

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, Peterbilt, Honda, CVS Pharmacy, Maybelline, Harley-Davidson, and Walgreens.

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. Furthermore, achievement of the objectives of the Company following the sale of Ermanco is subject to risks associated with business disruption resulting from the announcement of the sale and other risks outlined in Paragon's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2004 and the most recent quarterly report on Form 10-Q for the quarter ended September 30, 2005.

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