Restructuring of paragon AG completed

paragon AG / Mergers & Acquisitions 01.09.2010 09:27 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. --------------------------------------------------------------------------- - Assets of paragon finesse GmbH acquired - Production of instrumentation to be concentrated in Suhl - Workforce increases to 317 employees and 40 contract workers Delbrück, September 1, 2010 - paragon AG has completed its restructuring just three months after successfully emerging from insolvency. The listed company will acquire the assets of its former subsidiary paragon finesse GmbH on September 1, 2010, ensuring continuity for both customers and employees. Headquartered in Delbrück (North Rhine-Westphalia), the company also has branches in Suhl (Thuringia), Nuremberg (Bavaria), and St. Georgen (Baden-Württemberg). The former paragon Group was dissolved on January 1, 2010 when insolvency proceedings opened. On June 1, 2010, the former parent company paragon AG began operating fully independently again, following a vote in favor of this at the creditors' meeting on April 16, 2010. Whereas a number of inactive subsidiaries were wound up, parts of paragon finesse GmbH's business will continue. This company operates at the Nuremberg and St. Georgen sites and is responsible for the media interfaces and cockpit product groups. paragon AG and the insolvency administrator of paragon finesse GmbH have reached agreement about acquiring the subsidiary's assets with effect from September 1, 2010. paragon AG is acquiring the assets at the development site in Nuremberg, which will be run as a branch of paragon AG in the future. All employees in Nuremberg will be taken on by paragon AG. The St. Georgen site will also be retained. The assets of the stepper motors business will be acquired by paragon AG and also run as one of its branches. In the future, paragon AG's production of instrumentation will be concentrated in Suhl; the affected employees are being offered jobs in Suhl. The parties to the deal have agreed not to disclose the purchase price, which paragon can pay out of its cash flow due to its strong performance. As a result of acquiring the assets of paragon finesse GmbH, paragon AG's workforce will increase from 279 (including 27 contract workers) to 357 (including 40 contract workers). Besides the central business units, which include marketing & sales, Delbrück is home to the research & development unit for the air quality, drive systems, and acoustics product groups. Sensor elements, electronics, and instrumentation are manufactured in Suhl. Nuremberg is responsible for the research & development of the media interfaces and cockpit product groups, while St. Georgen takes care of the research, development, and production of stepper motors. 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 01.09.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. 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 News DGAP News-Service ---------------------------------------------------------------------------