Paragon Technologies' SI Systems Production & Assembly Brand Awarded a $580,000 Contract for an Off-Road Utility Vehicle Assembly Conveyor System

EASTON, Pa., May 24, 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 $580,000 contract to provide an automated conveyor system to be used in the manufacture and assembly of off-road utility vehicles. The contract is with a global manufacturer of agricultural machinery, compact construction equipment, and turf equipment. Their extensive line of vehicles and equipment, marketed to commercial as well as residential buyers, is well known for its high performance and maneuverability. The system will be installed in a newly renovated factory in Gainesville, Georgia and is expected to be operational by December. Detailed terms of the contract were not disclosed.

SI Systems' proprietary LO-TOW(R), a chain-based towline conveyor system, will transport ergonomically designed carriers used to move the vehicle frames through multiple assembly stations and inspection areas to completion.

Joel Hoffner, President and CEO of Paragon Technologies, commented, "As the market for industrial and residential utility vehicles of all types continues to grow, creating demand for increased production capacity, our expertise in designing and installing ergonomical and reliable assembly systems is helping us capture a wide variety of new customers."

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 in manufacturing operations 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, 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/.