paragon AG / Acquisition

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.

paragon AG Acquires Remaining Stake in paragon fidelity GmbH

Acquisition of remaining 49% from IKB Private Equity has been finalized

Delbrück, August 25, 2006 – paragon AG has made another important step in
its expansion strategy. With retroactive effect as of January 1, 2006, the
company, which is listed in the Prime Standard segment of the German Stock
Exchange, is acquiring the remaining 49% stake in paragon fidelity GmbH in
Cadolzburg near Fürth, Bavaria (formerly Cullmann GmbH). paragon AG had
acquired a majority stake in Cullmann GmbH in August 2005.

In the course of the integration within the Group, Cullmann GmbH was
renamed paragon fidelity GmbH with retroactive effect as of January 1,
2006. paragon acquires the remaining 49% from IKB Private Equity. Now all
requirements have been made to utilize the growth potential in the business
unit Car Media Systems and to exploit all synergy effects in the complete
group. Amongst other things the components will no longer be sourced in
foreign countries, but will be produced in-house in paragon’s facilities in
Suhl, Thuringia, Germany.

paragon AG
Schwalbenweg 29
33129 Delbrück
ISIN: DE0005558696

Haubrok Investor Relations
Michael Müller, Fabian Lorenz
Phone: +49 211 30126-0/Fax: +49 211 30126-172

DGAP 25.08.2006 
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, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service