paragon AG / Quarter Results

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paragon AG: Strong growth in first nine months

- Sales increase 39.8% to €78.1 million
- EBITDA climbs 53.4% to €14.5 million
- Air quality sensors bring breakthrough in the mid-range category

Delbrück, 8. Delbrück, November 8, 2006 – paragon ISIN DE0005558696) is
continuing the growth track in the first nine months of 2006. Group sales
rose by 39.8% to €78.1 million. The Company posted record revenue of €27.5
million in the third quarter alone.

Earnings before interest, taxes, depreciation, and amortization (EBITDA)
grew 53.4% to €14.5 million (previous year: €9.5 million). Adjusted EBIT
increased by 41.6% to €6.2 million during the period under review. After
writing down intangible assets, the increase was 15.9%, or €5.0 million
(previous year: €4.4 million). Special tax effects led to a decrease in net
income for the period to €963 thousand (previous year: €1.4 million). This
translates into diluted and undiluted earnings of €0.23 per share (previous
year: €0.34 undiluted, €0.33 diluted). By the end of the year, the Managing
Board expects earnings per share to have surpassed the previous year’s
level (December 31, 2005: €0.55).

In the core Automotive division, sales climbed 60.7% to €62.9 million
(previous year: €39.1 million). With an 80.5% share (previous year: 70.1%),
the division not only makes the greatest contribution to total sales, but
is also the growth engine for the entire paragon Group.

The Electronic Solutions division generated sales of €14.4 million for
paragon (previous year: € 16.1 million). This development is primarily
attributable to a reallocation within the Group in the first quarter of

The Building Technology division increased its sales in the first nine
months to €846 thousand (previous year: €607 thousand).

Based on the backlog of orders, the Managing Board continues to anticipate
that sales will exceed €110 million in the current fiscal year. In the
coming year, new orders in the Climate Control division will contribute to
further growth. Starting in 2007, for example, a German customer will use
air quality sensors from paragon in its high-volume compact and mid-range
category vehicles.

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 08.11.2006 
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