Paragon Technologies’ SI Systems Brand Awarded Contracts Totaling $900,000 for Two Assembly Conveyor Systems

June 26, 2008

EASTON, Pa., June 26 /PRNewswire-FirstCall/ — Paragon Technologies,
Inc. (Amex: PTG), a leading supplier of “smart” material handling assembly
conveyor systems and “software-driven” warehouse and distributions systems
announced today that its SI Systems brand secured orders totaling
approximately $900,000 to design, build, and install automated conveyor
systems from two global manufacturers of off-road and on-road vehicles. One
system will be employed to assemble cabs for large off-road vehicles, and
the other system is for assembly of a line of new fuel-efficient engines
for automobiles and light trucks. Terms of the contracts were not
disclosed.

The system design will incorporate the Company’s unique and popular
ergonomically designed carriers that lift, lower, and rotate fixtured
vehicle frames during the assembly process, and will reduce worker fatigue
and increase manufacturing productivity. The systems will be installed in
new factories currently under construction and will significantly boost
manufacturing capacity for both customers.

Len Yurkovic, Acting CEO of Paragon Technologies, said, “Our expertise
in designing ergonomically friendly assembly systems is widely recognized
in the vehicle manufacturing marketplace.” Yurkovic also said, “As
manufacturers worldwide search for systems that will reduce worker fatigue
while increasing productivity, our conveyor technologies are positioned to
become integral to their ability to achieve these requirements.”

About Paragon Technologies

Paragon Technologies is a leader in integrating material handling
systems and creating automated solutions for material flow applications. SI
Systems’ 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, and Maybelline.

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. The forward-looking statements contained in this press
release may become outdated over time. Paragon does not assume any
responsibility for updating any forward-looking statements. Furthermore,
achievement of the objectives of the Company is subject to certain risks,
including, but not limited to, those 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, 2007 and the most recent
quarterly report on Form 10-Q for the quarter ended March 31, 2008.

http://www.ptgamex.com.

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