Paragon Technologies' SI Systems Production & Assembly Brand Awarded a $1.9 Million Contract for an Off-Highway Vehicle Assembly Conveyor System

EASTON, Pa., May 2, 2006 -- Paragon Technologies, Inc. (AMEX:PTG) , a leading supplier of "smart" material handling systems and "software-driven" warehouse and distribution center solutions, announced today its SI Systems' Production & Assembly brand was awarded a $1.9 million contract to provide an automated conveyor system to be used in the manufacture of motor graders. The contract is with a global technology leader who manufactures construction and mining equipment. Worldwide expansion in the mining industry has fueled demand for off-highway vehicles globally. SI Systems' proprietary LO-TOW(R), a chain-based towline conveyor system, will move the vehicles through multiple assembly stations and inspection areas to its completion. The fully assembled vehicles may weigh up to 70,000 pounds. The automated conveyor system will be installed at an Illinois-based assembly plant. Detailed terms of the contract were not disclosed.

Joel Hoffner, President and CEO of Paragon Technologies, commented, "We are pleased that this well-known and respected manufacturer has selected our LO-TOW(R) conveyor system solution to facilitate their increased production requirements, resulting from a growing demand for their line of motor graders. Our proven leadership in the solution, design, and implementation of assembly conveyor systems, particularly those involving heavy, high-value products, is well recognized in the marketplace."

Similar LO-TOW(R) towline system solutions have been installed in a variety of manufacturing assembly plants that assemble wheeled and non-wheeled vehicles - from lightweight lawnmowers to heavy armor-plated military vehicles.

Paragon's SI Systems' Order Fulfillment and Production & Assembly technologies improve productivity, efficiency, and operational accuracy at Fortune 1000 companies and United States Government installations.

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, Oshkosh Truck, Honda, CVS Pharmacy, Maybelline, 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, 2005.

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