paragon AG: Focus on the Automotive division

paragon AG / Strategic Company Decision Release of an 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. ---------------------------------------------------------------------- Delbrück, May 21, 2007 – The Management and the Supervisory Board of paragon AG agreed to increase the company’s focus on the core Automotive division. In order to support and accelerate this process, the Management is proving all strategic options for the business area of Electronic Solutions including Building Technology. This includes both the sale of subareas and the alienation of all activities of the subsidiaries paragon firstronic GmbH, based in Suhl/Germany, and paragon firstronic of NA Corp., based in Grand Rapids/USA. paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +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 Leitung Unternehmenskommunikation Matthias Hack Tel.: +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 Fabian Lorenz Tel.: +49 (0) 2 11- 3 01 26 -117 Fax: +49 (0) 2 11 - 3 01 26 -172 E-Mail: f.lorenz@haubrok.de DGAP 21.05.2007 ---------------------------------------------------------------------- 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 www: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------