paragon AG / Miscellaneous

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· Order volume for Multimedia Interface more than triples
· Major order underscores the market potential for integration solutions
· Other car makers looking at adopting this cutting-edge technology

Delbrück, 6 February 2008 – paragon AG has scored a new major order in its
dominating Automotive business division. A German car maker will be
equipping more of its models with Multimedia Device Interface (MDI) from
paragon starting this year. With the deal, this direct supplier to the
automobile industry will more than triple the contract volume for this
product compared to that of fiscal year 2007. The assured order volume with
MDI for the next three years totals more than €25 million.

In its Car Media Systems division paragon offers all-embracing solutions to
ensure perfect communications and infotainment in motor vehicles. With MDI,
the company has developed a visionary system that responds to and is
ideally suited for the mobile communications megatrend. 'We’ve worked hard
to give ourselves a tremendous lead when it comes to innovation. Repeat
orders like this are a testament to the market potential of our products',
stressed board chairman and CEO Klaus Dieter Frers.

The Multimedia Device Interface acts as the junction between the vehicle’s
infotainment system and mobile appliances, such as the iPod or other MP3
players. The devices are not only connected directly to the existing
control systems and displays within the vehicle, but are perfectly
integrated within its interior environment and provide occupants the
ultimate way of operating them.

paragon has been developing and marketing communications electronics for
automobiles since 1999. Its portfolio includes products for handsfree
speaking, navigation, multimedia and telematics applications. The Car Media
Systems division is also where paragon is increasingly growing to become an
established systems partner to manufacturers; this latest major order being
impressive evidence of that. paragon is in talks with a number of other car
makers about them also adopting this MDI technology.

About paragon AG:
paragon AG is a direct supplier to the automotive industry and is listed on
the Deutsche Börse Prime Standard index in Frankfurt/Main, Germany. The
Company develops, manufactures, and markets innovative solutions in its
Automotive (car media systems/climate systems/control and instrumentation),
Electronic Solutions, and Building Technology divisions. Its product
portfolio includes the world’s leading AQS air quality sensor by far as
well as hands-free speaking equipment and instrumentation systems. In
addition to its headquarters in Delbrück, North Rhine-Westphalia, paragon
also operates locations in Suhl, Thuringia (production), Cadolzburg,
Bavaria (car media systems), St. Georgen, Baden-Württemberg
(instrumentation systems) and Heidenheim, Baden-Württemberg (Electronic
Solutions sales). In the international arena, the paragon Group is
represented by wholly-owned subsidiaries in Grand Rapids, Michigan, USA
(development, production, and sales) and Osaka, Japan (applications and
sales) as well as a sales office in Paris, France. In fiscal 2006, the
paragon Group generated sales totaling €110.8 million with a workforce of
564 employees.

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
Thomas Vormann
Phone: +49 (0) 2 11 - 3 01 26-0
Fax: +49 (0) 2 11 - 3 01 26-172

06.02.2008  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:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service