paragon AG raises efficiency in the first half of 2007

paragon AG / Half Year Results

Release 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.
----------------------------------------------------------------------

· Disproportionately strong earnings growth continues
· EBIT up 10.7 percent, sales up 6.8 percent
· Deliveries for big-ticket AQS contracts to commence in second half of
year

Delbrück, August 9, 2007 – paragon AG experienced further earnings-driven
growth in the second quarter of 2007. Increased efficiency has made a
perceptible and positive impact, particularly in the core Automotive
segment. In addition to various measures aimed at raising the company's
profitability, the focus has also been on preparations for the commencement
of deliveries for big-ticket orders in the air quality sensor (AQS)
business. Consequently, the coming months will see a further acceleration
in both sales and earnings growth.

The second quarter saw an increase in the rate of sales growth for the
Group, which supplies its products directly to customers in the automotive
sector. Following a 5.9 percent increase in sales in the first quarter,
between April and June paragon increased sales by 7.5 percent, compared
with the same period of the previous year, to a total of €28.5 million.
Overall, sales in the first six months of 2007 increased by 6.8 percent to
€54.1 million (H1 2006: €50.6 million).

Earnings before interest and tax (EBIT) increased at an even faster rate
than sales in the first half of 2007. Operating profit increased by 10.7
percent to €4.0 million (H1 2006: €3.6 million). The EBIT margin rose
accordingly from 6.2 percent to 7.4 percent. In the Automotive segment, the
EBIT margin was as high as 8.6 percent.

Earnings before interest, tax and depreciation (EBITDA) was €9.5 million in
the first half (H1 2006: €8.9 million). This represents an increase of 7.6
percent and an EBITDA margin of 17.7 percent (H1 2006: 17.5 percent).
Despite one-off charges as a result of refinancing arrangements, net income
for the period remained at roughly the same level as in the previous year.
Net income for the period was €697 thousand (H1 2006: €796 thousand);
giving earnings per share of €0.17 (H1 2006: €0.19).

In the core Automotive segment, sales were in line with plan during the
first half of the year at €43.2 million. This represents an increase of 5.6
percent on the same period in the previous year. For the half-year period,
the Automotive segment accounted for exactly 80.0 percent of total sales.
The Electronic Solutions segment (including Building Technology) generated
revenue of €10.8 million (H1 2006: €9.7 million).

The Managing Board's sales and earnings forecast for the year as a whole
remains unchanged. Traditionally, paragon AG has experienced the strongest
growth in the second half of the year. Consequently, the coming months will
see a further acceleration in both sales and earnings growth. The
big-ticket orders will not only boost sales but also, above all,
significantly raise our efficiency.

The report of the first half 2007 can be downloaded at
http://www.paragon-online.de under the section 'Investor Relations'.


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
E-Mail: info@paragon-online.de

Leitung Unternehmenskommunikation
Matthias Hack
Tel.: +49 (0) 52 50 - 97 62 -141
Fax: +49 (0) 52 50 - 97 62 -60
E-Mail: matthias.hack@paragon-online.de

Investor Relations
Haubrok Investor Relations GmbH
Fabian Lorenz
Tel.: +49 (0) 2 11- 3 01 26 -117
Fax: +49 (0) 2 11 - 3 01 26 -172
E-Mail: f.lorenz@haubrok.de


DGAP 09.08.2007 
----------------------------------------------------------------------
 
Language:     English
Issuer:       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
Indices:      
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hamburg, Düsseldorf, Stuttgart
 
End of News                                     DGAP News-Service
 
---------------------------------------------------------------------------