PTG Paragon Technologies,

EASTON, Pa., June 13 /PRNewswire-FirstCall/ -- 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' Order Fulfillment brand received an order totaling approximately $400,000 to modify and enhance a high volume, automated order fulfillment system for the distribution of "nutra-ceuticals" with high-speed printing technology. The customer is a leading, vertically integrated manufacturer, marketer, and distributor of a broad line of over 22,000 high-quality, value priced nutritional supplements. The system addition will allow this industry leader to include personalized correspondences to all of its clients on-demand and automatically inclusive with their shipments. Detailed terms of the contract were not disclosed. Joel Hoffner, President and CEO of Paragon Technologies, commented, "We are privileged to receive this order from a valued and long-standing customer. It is one of many enhancements to the original system that we have been commissioned to install. The continued confidence of our customer is rewarding." Paragon reports that, including this order, bookings are approximately $10 million through the end of May, bringing the current backlog of orders to approximately $9.9 million at the end of May, an increase from the backlog at the start of year of $6.9 million. Hoffner added, "We are pleased with the rate of orders for the first five months of the year." Mr. Hoffner also noted, "The Company continues to purchase its stock under the previously announced buyback authorized by our Board of Directors, and would consider authorizing an expansion of this program if the Board determines that it would be in the best interest of our stockholders." 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 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/. DATASOURCE: Paragon Technologies, Inc. CONTACT: Joel Hoffner, President and CEO, Paragon Technologies, Inc., +1-610-252-3205, or +1-610-252-3102 (Fax) Web site: http://www.ptgamex.com/

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