paragon AG: First Quarter of 2006 Off to a Strong Start

paragon AG / Quarter Results 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. ---------------------------------------------------------------------- paragon AG: First Quarter of 2006 Off to a Strong Start - Sales rise 46.0% to € 24.2 million - Operating result (EBITDA) grows 47.9% to €4.4 million - Projected revenues of between €110 and 115 million confirmed for 2006 Delbrück, May 10, 2006 – paragon AG, a company listed in the Prime Standard segment of the German Stock Exchange, achieved significant growth in the first quarter of 2006. In the first three months of the year, revenues rose 46.0% from the prior-year period to €24.2 million (Q1 2005: €16.6 million). The operating result, or earnings before interest, taxes, depreciation, and amortization (EBITDA), climbed 47.9% to €4.4 million (Q1 2005: €3.0 million). The Automotive business division increased its sales by 68.0% to €19.7 million in the period under review (Q1 2005: €11.7 million). This division’s share in total sales continued to rise, reaching 81.5% in the first quarter (Q1 2005: 70.8%). The sales generated by this division in the USA amounted to €1.6 million (Q1 2005: €1.0 million). The Electronic Solutions business division generated sales totaling €4.3 million with customer-specific, integrated total solutions (Q1 2005: €4.7 million). This figure represented 16.7% of total sales (Q1 2005: 28.7%). Activities in the USA contributed €1.2 million to this total (Q1 2005: €375,000). In the Building Technology business division, paragon generated €213,000 in sales (Q1 2005: €84,000), representing 0.8% of total sales (Q1 2005: 0.5%). The operating result, or earnings before interest, taxes, depreciation, and amortization (EBITDA), improved by 47.9% to €4.4 million (Q1 2005: €3.0 million). Adjusted earnings before interest and taxes (EBIT) jumped 50.5% to €2.1 million in the first three months of 2006 (Q1 2005: €1.4 million). In consideration of amortization of intangible assets, the increase was 26.8% or €1.8 million. The growth of the paragon Group was accompanied by an expansion of the workforce, above all at the German production facilities. At the end of the first quarter of 2006, the number of employees in the paragon Group had risen by 29.8% to a total of 544 (Q1 2005: 419). paragon AG Schwalbenweg 29 33129 Delbrück ISIN: DE0005558696 Contact: Investor Relations Haubrok Investor Relations GmbH Michael Müller, Fabian Lorenz Phone: +49 211 30126-0 / Fax: +49 211 30126-172 E-Mail: office@haubrok.de DGAP 10.05.2006 ---------------------------------------------------------------------- Language: English Issuer: paragon AG Schwalbenweg 29 33129 Delbrück Deutschland Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 email: investor@paragon-online.de WWW: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------