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.
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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 
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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
 
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