Upward trend consolidated

paragon AG / Key word(s): Half Year Results 19.01.2011 08:42 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. --------------------------------------------------------------------------- Upward trend consolidated - Revenue raised by 10 percent to EUR31.0 million - Half-year earnings per share of EUR1.00 highest since IPO Delbrück, January 19, 2011: The upward trend at paragon AG is being consolidated. The Company - a publicly traded direct supplier to the automotive industry - raised its revenue by 10 percent to EUR31.0 million during the six-month period from June 1 to November 30, 2010 (2009: EUR28.1 million). With revenue at EUR16.6 million (2009: EUR15.7 million), the quarter covering the period from September 1 to November 30, 2010 underscored this growth trend. This quarter therefore generated even stronger revenue than the previous quarter from June 1 to August 31, 2010 (EUR14.4 million). In addition to generating consistent revenue growth, paragon earned considerably higher profits. Earnings before interest and tax (EBIT) improved year on year from a loss of EUR2.0 million to a profit of EUR5.4 million, while earnings before interest, tax, depreciation and amortization (EBITDA) rose from EUR0.5 million to EUR7.9 million. Including restructuring gains and costs, adjusted EBIT amounted to EUR3.6 million and adjusted EBITDA came to EUR6.1 million. These financial results are rounded off by an operating cash flow (excluding one-off items) of EUR3.9 million and a net income (according to International Financial Reporting Standards [IFRS]) of EUR4.1 million. paragon reported its highest half-year earnings per share (EUR1.00) since its initial public offering (IPO) in November 2000. At the balance sheet date on November 30, 2010, paragon AG's workforce comprised 307 employees and 49 temporary staff members, all of whom worked in Germany. Its headcount therefore grew significantly compared with both the end of the previous short financial year (May 31, 2010: 247 employees and 19 temporary staff) and the previous quarter (August 31, 2010: 252 employees and 23 temporary staff). This increase in the Company's workforce was attributable to the acquisition of its former subsidiary paragon finesse GmbH, which was completed on September 1, 2010, and to its strong order situation. Portrait paragon AG, listed in the Prime Standard of Deutsche Börse in Frankfurt develops, produces and markets innovative solutions in the field of automotive electronics. The portfolio of this direct supplier to the automotive industry includes products in the field of air quality, power train, acoustics, cockpit, stepper motors, media interfaces and controls. One excellent product is the undoubtedly world leading air quality sensor, AQS. Apart from its headquarters in Delbrück (North Rhine-Westphalia) there are branches in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg). For the fiscal year 2010, paragon, with more than 300 employees, is aiming to generate sales of EUR58 million. Contact paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0) 52 50 - 97 62-0 Fax: +49 (0) 52 50 - 97 62-60 Internet: www.paragon-online.de Email: info@paragon-online.de Press officer Matthias Hack Tel.: +49 (0) 52 50 - 97 62-141 Mobile: +49 (0) 162 1010724 Fax: +49 (0) 52 50 - 97 62-60 Email: matthias.hack@paragon-online.de Corporate Communications Marc Götte Tel.: +49 (0) 52 50 - 97 62-161 Fax: +49 (0) 52 50 - 97 62-60 Email: marc.goette@paragon-online.de 19.01.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 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, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------