paragon AG / Change of Personnel

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· Consistent and rapid implementation of company planning 
· Golo Alexander Wahl to become Director of Marketing & Sales 
· Restructuring of finance department 

Delbrück, 31 August 2007 – paragon AG is consistently aligning its
structures towards the Automotive division and generating increased sales.
In line with its plans, the publicly listed company is adjusting its
management structure and further internationalising its sales activities.
With effect from 1 October 2007, Golo Alexander Wahl will take over the
newly created position of Director of Marketing & Sales. In parallel, the
finance department is newly structured. Hans-Jürgen John retired from his
position as CFO for personal reasons and on the basis of mutual agreement.

Following the company’s rapid growth since its IPO, which has enabled sales
to rocket from around Euro 20 million to more than Euro 110 million in only
six years, in the 2007 financial year paragon is focusing on profit-driven
growth. 'The rapid growth seen in recent years may well have cost the odd
percentage point in terms of earnings, but it was nevertheless important to
achieve the critical mass required for acceptance in the automobile
technology market. Now we are implementing a bundle of measures based
precisely on our planning in order to further improve our key figures.
Afterwards we will be pursuing our expansion with the accustomed high level
of commitment and a considerably lower debt-equity ratio. The personnel
changes will also help us to achieve the targets we have set,' stressed
Klaus Dieter Frers, Chairman of the Board of Directors.

In the interests of boosting and further internationalising sales
activities in the Automotive division, Golo Alexander Wahl will assume the
new position of Director of Marketing & Sales with effect from 1 October
2007. Wahl, a sales professional who has worked in the automotive sector
for almost ten years now, most recently acted as Director of Customer
Management at Johnson Controls in Burscheid.

Hans-Jürgen John retired from his position as CFO. For the time being, his
responsibilities will be additionally assumed by Klaus Dieter Frers,
Chairman of the Board of Directors. In parallel, the finance department was
strengthened with additional staff. With the appointment of two
longstanding, proven employees as deputy members of the Board of Directors,
paragon has also safeguarded the continuity of its management. Ralf
Mönkemöller (Research & Development) and Hans Marold (Production) will in
future also form part of the company’s top management team.

'I am very pleased that we have successfully attracted a proven expert in
the automotive industry to paragon in the form of Golo Alexander Wahl. His
longstanding experience and profound expertise will make a key contribution
where it matters most to enable paragon to reach the next rungs on its
ladder of success', commented Klaus Dieter Frers with regard to the future.

paragon AG
Schwalbenweg 29
33129 Delbrück
Phone: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60

Head of Corporate Communications
Matthias Hack
Phone: +49 (0) 52 50 - 97 62-141
Fax: +49 (0) 52 50 - 97 62-60

Investor Relations
Haubrok Investor Relations GmbH
Christine Schulte-Beckhausen
Phone: +49 (0) 2 11 - 3 01 26-0
Fax: +49 (0) 2 11 - 3 01 26-172

31.08.2007  Financial News transmitted by DGAP
Language:     English
Issuer:       paragon AG
              Schwalbenweg 29
              33129 Delbrück
Phone:        +49 (0)5250 97 62 - 0
Fax:          +49 (0)5250 97 62 - 60
ISIN:         DE0005558696
WKN:          555869
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service