paragon AG / Half Year Report

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.

- Half-year sales rise by 40.9% to €50.6 million
- EBITDA growth of 43.4% to €8.9 million
- Growth driven by key Automotive division 

Delbrück, 9 August 2006 – paragon AG has reported significant growth once
again for the first half of 2006. Consolidated sales at the company rose to
€50.6 million in the first six months and were thus 40.9% higher than the
equivalent figure of €35.9 million for the previous year. Earnings before
interest, taxes, depreciation and amortization (EBITDA) increased by 43.4%
to €8.9 million (previous year: €6.2 million). Earnings before interest and
taxes (EBIT) amounted to € 3.6 million. This is equivalent to an increase
of 24.1% (previous year: €2.9 million).

The principal growth driver in the first half of 2006 was the Automotive
division, at which sales increased by 62.1% to €40.9 million (previous
year: €25.2 million). This means that 80.8% of consolidated sales are now
generated at paragon’s core business division.

In its Electronic Solutions division, paragon generated sales of €9.1
million (previous year: €10.4 million). This development is principally due
to restructuring measures within the Group.

Sales at the Building Technology division rose by 103.8% to €597 thousand
(previous year: €293 thousand).

paragon AG has affirmed its forecast of sales between €110 million and €115
million for the overall 2006 financial year. The growth of the Group will
continue to be driven by its Automotive division. paragon will benefit on a
sustainable basis in this respect from the increasing use of electronic
components in automobiles.

paragon AG
Schwalbenweg 29
33129 Delbrück
ISIN-No.: DE0005558696

Investor Relations
Haubrok Investor Relations GmbH
Michael Müller, Fabian Lorenz
Tel: +49 211 30126-117 / Fax: +49 211 30126-172

DGAP 09.08.2006 
Language:     English
Issuer:       paragon AG
              Schwalbenweg 29
              33129 Delbrück Deutschland
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-Bremen, Stuttgart, Hamburg, Düsseldorf
End of News                                     DGAP News-Service