paragon AG / Contract

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.

Delbrück, November 20, 2006 - paragon AG has received further major orders
for its main Automotive division. A major German manufacturer will equip
further luxury class vehicles with air quality sensors and instruments
supplied by paragon. Moreover, the company has received its first major
order for the supply of the Air Quality Conditioner (AQC), a new product
for conditioning the quality of the air in the vehicle interior.

The first current major order confirms the success of the cooperation
between various business divisions. Starting in 2009, paragon will supply a
newly developed variant of the AQS air quality sensor together with an
instrument for the new platform.

The second major order involves the Air Quality Conditioner (AQC) air
quality conditioning system, which removes germs and bacteria at the
vaporizer of the air conditioning system. Starting with the series 2009
around 250,000 vehicles per year will be equipped with this new product.

In addition the Board of Directors confirms its forecast for the 2006
financial year. Based on the order backlog sales of more than € 110 million
will be reached. At more than € 30 million sales in the fourth quarter will
represent the highest quarterly sales in the company’s history. As
expected, this will help to achieve disproportionately high operating
earnings growth in the current quarter and bring a considerable jump in

paragon AG
Schwalbenweg 29
33129 Delbrück
ISIN: DE0005558696

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

DGAP 20.11.2006 
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