paragon AG garners major order for Car Media System

paragon AG / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- · Order volume for Multimedia Interface more than triples · Major order underscores the market potential for integration solutions · Other car makers looking at adopting this cutting-edge technology Delbrück, 6 February 2008 – paragon AG has scored a new major order in its dominating Automotive business division. A German car maker will be equipping more of its models with Multimedia Device Interface (MDI) from paragon starting this year. With the deal, this direct supplier to the automobile industry will more than triple the contract volume for this product compared to that of fiscal year 2007. The assured order volume with MDI for the next three years totals more than €25 million. In its Car Media Systems division paragon offers all-embracing solutions to ensure perfect communications and infotainment in motor vehicles. With MDI, the company has developed a visionary system that responds to and is ideally suited for the mobile communications megatrend. 'We’ve worked hard to give ourselves a tremendous lead when it comes to innovation. Repeat orders like this are a testament to the market potential of our products', stressed board chairman and CEO Klaus Dieter Frers. The Multimedia Device Interface acts as the junction between the vehicle’s infotainment system and mobile appliances, such as the iPod or other MP3 players. The devices are not only connected directly to the existing control systems and displays within the vehicle, but are perfectly integrated within its interior environment and provide occupants the ultimate way of operating them. paragon has been developing and marketing communications electronics for automobiles since 1999. Its portfolio includes products for handsfree speaking, navigation, multimedia and telematics applications. The Car Media Systems division is also where paragon is increasingly growing to become an established systems partner to manufacturers; this latest major order being impressive evidence of that. paragon is in talks with a number of other car makers about them also adopting this MDI technology. About paragon AG: 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 (car media systems/climate systems/control and instrumentation), Electronic Solutions, and Building Technology 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 (production), Cadolzburg, Bavaria (car media systems), St. Georgen, Baden-Württemberg (instrumentation systems) and Heidenheim, Baden-Württemberg (Electronic Solutions sales). In the international arena, the paragon Group is represented by wholly-owned subsidiaries in Grand Rapids, Michigan, USA (development, production, and sales) and Osaka, Japan (applications and sales) as well as a sales office in Paris, France. In fiscal 2006, the paragon Group generated sales totaling €110.8 million with a workforce of 564 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 E-mail: info@paragon-online.de Head of Corporate Communications 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 Investor Relations Haubrok Investor Relations GmbH Thomas Vormann Phone: +49 (0) 2 11 - 3 01 26-0 Fax: +49 (0) 2 11 - 3 01 26-172 E-Mail: t.vormann@haubrok.de 06.02.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- 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 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------