Upturn at paragon continues

paragon AG / Key word(s): Quarter Results 30.09.2010 08:12 Dissemination 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. --------------------------------------------------------------------------- Upturn at paragon continues - Sales up 16 percent on prior year - Restructuring having the planned effect - Sustained earnings growth Delbrück, September 30, 2010 - The upturn at paragon AG, a publicly listed supplier of parts to the automotive industry, is proving to be sustained. In the period June 1 to August 31, 2010, the company generated sales of EUR14.4 million, up 16 percent on the same period in the previous year (EUR12.4 million). Thanks to its positioning in niche markets, paragon has managed to capitalize on the recovery in sales in the automotive industry following the most profound crisis in the sector for decades. New orders have stabilized at a high level with paragon plants operating at full capacity. Thanks to the significant reduction in fixed costs brought about by the restructuring, the extremely satisfactory growth in the operating business and a substantial reduction of debt, paragon has been able to significantly exceed the earnings figures of the previous year. In addition to the strong growth in sales (up 16 percent), earnings were also boosted by the relatively small increase in the cost of materials (up 7 percent) and the significant reduction in personnel costs (down 19 percent). EBIT increased - partly as a result of one-off items - from a loss of EUR0.4 million in the same period of the previous year to plus EUR3.0 million; EBITDA rose correspondingly from EUR0.8 million to EUR4.3 million. Even without the one-off items (further restructuring gains and insolvency-related costs), EBIT and EBITDA are well into positive territory at EUR2.1 million and EUR3.4 million respectively. This clearly demonstrates that the company has used the insolvency to implement a successful program of restructuring. As at August 31, 2010, paragon employed 252 people plus 23 temporary staff. Compared with the same date in the previous year, the number of employees has declined (August 31, 2009: 265) and the number of temporary staff has increased (August 31, 2009: 7). Since the end of the short financial year on May 31, 2010, there has been a slight increase both in the number of employees (from 247 to 252) and in the number of temporary staff (from 19 to 23). For the 2010 financial year, the Managing Board of paragon AG had predicted sales of EUR58 million and a strong operating profit (adjusted for restructuring and insolvency costs) of EUR7.5 million. Portrait Listed in the Prime Standard segment of Deutsche Börse in Frankfurt am Main, paragon AG develops, produces and distributes pioneering automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the segments of air quality, drive systems, acoustics, cockpit systems, stepper motors, media interfaces and control systems. One of its stand-out products is the AQS air quality sensor, the clear global market leader. With headquarters in Delbrück (North Rhine-Westphalia), the company also has sites in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg). In the 2010 financial year paragon aims to generate revenue in excess of EUR58 million with more than 300 employees. Contact paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0)5250 97620 Fax: +49 (0)5250 976 260 Website: www.paragon-online.de Email: info@paragon-online.de Press Officer Matthias Hack Tel.: +49 (0)5250 976 2141 Cell: +49 (0)162 101 0724 Fax: +49 (0)5250 976 260 Email: matthias.hack@paragon-online.de Corporate Communications Marc Götte Tel.: +49 (0)5250 976 2161 Fax: +49 (0)5250 976 260 Email: marc.goette@paragon-online.de 30.09.2010 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: 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 Internet: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Hamburg, München, Düsseldorf, Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------