paragon AG: paragon continues on long-term course for growth

paragon AG / Final 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.
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paragon continues on long-term course for growth

- 23.9% revenue growth in fiscal 2005
- 34.5% increase in operating result (EBITDA)
- Plans to double dividend to €0.20 per share
- Over 35% rise in revenue to €110-115 million planned for 2006 

Delbrück, March 22, 2006 – In fiscal 2005, paragon AG again pursued its
growth strategy. During the year, the company, which is listed in the Prime
Standard on the Deutsche Börse stock exchange, increased its revenue by
23.9% to €80.2 million. The company’s operating result experienced the
steepest growth: paragon successfully boosted growth in EBITDA by 34.5% to
€13.9 million. In view of this positive business development, the Board of
Directors announced plans to double the dividend to €0.20 per share.

Within two years, paragon almost doubled its revenue. It grew its earnings
from €40.7 million in 2003 to €80.2 million in 2005.

The U.S. segment of the group contributed €8.7 million (€5.7 million in
2004) to total revenues, a figure that represents a 51.4% rise on its share
in 2004.

Earnings before interest and taxes (EBIT) grew at a rate of 25.9% (2005:
€6.6 million; 2004: €5.2 million). The EBIT margin rose year on year from
8.1% to 8.2%, while the EBITDA margin grew from 16.0% to 17.3%. On account
of special taxation factors that applied in 2005 and 2004, the net income
of €2.2 million cannot be compared directly with last year’s figure (€2.9
million). Without these special factors, net income for the two years would
have amounted to €2.5 million (2005) and €2.1 million (2004). This clearly
reflects the continual rise in net income compared with the 2003 figure
(€1.4 million). This taxation factor took the earnings per share to €0.56
(compared with €0.71/share in the previous year).

In fiscal 2005, it was above all the Automotive division that played a key
role in driving growth. Here, revenue rose by 45.2% to €57.5 million (€39.6
million in 2004). With this figure, the Automotive division achieved its
largest share of total revenue to date at 71.7% (2004: 61.2%). Along with
development of new products and winning new customers for its proven
climate systems and control and instrumentation system solutions, the
acquisition of a majority holding in Cullmann GmbH (Cadolzburg near Fürth)
was the key milestone that marked events in 2005.

Cullmann was integrated in the paragon Group in the fourth quarter of 2005.
Activities in the Car Media Systems division are now fueled by the newly
founded paragon fidelity GmbH.

In the Electronic Solutions division, paragon generated revenues totaling
€22.0 million (2004: €24.2 million) with integrated total solutions in
industrial electronics, which represents a share of 27.4% in total revenue
(2004: 37.5%). With its developments, services and products in the Building
Technology division, paragon reported earnings of €729 thousand (2004: €900
thousand), which represents a share of 0.9% in total revenues.

As per December 31, 2005, the paragon Group had 527 employees worldwide
(2004: 388). Together with profit participation capital and silent
holdings, shareholder equity had reached 38.5% of total assets at yearend
(2004: 35.4%). Liquid assets totaled €4.8 million as per December 31, 2005
(€5.4 million in 2004).

The Board of Directors anticipates that the company will post revenues of
between €110 and 115 million this year.


Investor Relations: phone: +49 5250 9762-140 / fax: +49 5250 9762-61
mail: investor@paragon-online.de

paragon AG
Schwalbenweg 29
33129 Delbrück

ISIN No.: DE0005558696





DGAP 22.03.2006 
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language:     English
company:      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:      
stockmarkets: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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