Management Board of paragon AG withdraws application for self-administration

paragon AG / Insolvency 16.12.2009 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Management Board of paragon AG withdraws application for self-administration Delbrück, December 16, 2009. On January 1, 2010, the local court in Paderborn is to open proceedings concerning the insolvency of paragon AG. In January 2010 the company will also file a final insolvency plan with the court, which will then be presented to the creditors' meeting for a decision. Klaus Dieter Frers is to remain in post as chief executive officer even after the insolvency proceedings have been opened. At the same time, the Management Board will withdraw the application for self-administration filed with the Paderborn local court. Since the application for insolvency was filed on October 5, 2009, paragon has almost completed the restructuring program begun in autumn 2008 in close consultation with the preliminary insolvency administrator Dr. Frank Kebekus. By the end of the year the workforce of 660 will have been cut to around 400. The company has thus adjusted to the fall in orders in the wake of the global crisis in the automotive industry and has been operating profitably again for a number of months. paragon AG is a direct supplier to the automotive industry and is listed on the Deutsche Börse Prime Standard index in Frankfurt/Main, Germany. The Company develops, manufactures, and markets innovative solutions in its Automotive (Sensors/Actuators and Cockpit Systems) and Electronic Solutions divisions. Its product portfolio includes the world's leading AQS air quality sensor by far as well as hands-free speaking equipment and instrumentation systems. In addition to its headquarters in Delbrück, North Rhine-Westphalia, paragon also operates locations in Suhl, Thuringia; St. Georgen, Baden-Württemberg; Nuremberg, Bavaria; and Heidenheim, Baden-Württemberg. In fiscal 2007, the paragon Group generated sales totaling EUR108.9 million with a workforce of 594 employees. paragon AG Schwalbenweg 29 33129 Delbrück Phone: +49 (0) 52 50 - 97 62 - 0 Fax: +49 (0) 52 50 - 97 62 - 60 Internet: www.paragon-online.de Press Officer Matthias Hack Phone: +49 (0) 52 50 - 97 62 - 141 Fax: +49 (0) 52 50 - 97 62 - 60 E-mail: matthias.hack@paragon-online.de Corporate Communications Marc Götte Phone: +49 (0) 52 50 - 97 62 - 161 Fax: +49 (0) 52 50 - 97 62 - 60 E-mail: marc.goette@paragon-online.de 16.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 33129 Delbrück Deutschland Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 E-mail: investor@paragon-online.de Internet: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------