paragon AG: Slump in sales leads to disappointing 4th quarter 2008

paragon AG / Preliminary Results

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Slump in sales leads to disappointing 4th quarter 2008

- General situation in the industry prevented another record year
- Managing Board expects loss before taxes for 2008
- Highly promising discussions with new investors

Delbrück, March 17, 2009 - Until the fourth quarter paragon AG was able to
elude the negative effects of the crisis in the automotive industry. After
the third quarter of 2008, the company still reported growth in sales of
15.4% in the dominant Automotive business division, giving rise to
expectations of another record year. However, the general situation in the
industry has now made itself felt at paragon as well. No orders have been
cancelled but a number of customers have postponed requisitions.

Like almost all automotive suppliers, paragon experienced a loss in the
fourth quarter. Nonetheless, preliminary figures showed that total sales in
fiscal 2008 rose by 3.4% to EUR112.6 million compared to EUR108.9 million
in fiscal 2007. Despite pleasing EBITDA and positive EBIT, current
calculations lead the Managing Board to expect a loss before taxes for
fiscal year 2008 due to the fourth quarter losses and higher interest
payments. For the time being, no improvement is within sight for the first
quarter of 2009 as well.

Based on paragon's broad portfolio of customers and products, the Managing
Board sees it as highly likely that the company will emerge from the crisis
in the automotive industry stronger than before. In addition to the high
share in sales to the Volkswagen Group (approximately 50% of paragon's
Automotive sales), which so far has been best able to weather the crisis,
this expectation is also shored up by the orders received in the last few
weeks valued at more than EUR35 million. The company expects to receive
almost EUR50 million in additional new orders in the next few months.

The Managing Board is working together with the attendant banks on
refinancing, for which there are positive signals. At the same time, many
promising discussions are ongoing with very interested parties who would
like to invest in the company. Furthermore under the leadership of CEO
Klaus Dieter Frers a comprehensive package of measures is intended to make
it possible to operate profitably even with lower sales. The previous CFO
Volker Brinkmann retired from his position with immediate effect. His
responsibilities will be assumed by a new CFO who is equipped with a
special expertise for the current business situation.


paragon AG
Schwalbenweg 29
33129 Delbrück
Phone: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon-online.de
E-mail: info@paragon-online.de

Head of Corporate Communications
Matthias Hack
Phone: +49 (0) 52 50 - 97 62-141
Fax: +49 (0) 52 50 - 97 62-60
E-mail: matthias.hack@paragon-online.de

Investor Relations
Haubrok Investor Relations GmbH
Michael Müller
Phone: +49 (0) 52 50 - 97 62-140
E-mail: m.mueller@haubrok.de
17.03.2009  Financial News transmitted by DGAP
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Language:     English
Issuer:       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 Berlin, München, Hamburg, Düsseldorf, Stuttgart
 
End of News                                     DGAP News-Service
 
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