Business going exactly according to plan

paragon AG / Key word(s): Quarter Results 11.05.2011 08:26 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. --------------------------------------------------------------------------- Sales up 7% in Q1 2011 Earnings remain at a high level Release order lead time twice as long as in 2008 Delbrück, May 11, 2011 - Business is going exactly according to plan at paragon AG. In the first quarter ended March 31, 2011, the listed direct supplier to the automotive industry increased its sales by 7% to EUR 16.9 million (Q1 2010: EUR 15.8 million). In addition, the Company exceeded the exceptionally high earnings it generated in the prior-year period. In the first quarter of fiscal 2011, paragon posted gains in nearly every product group thanks to rising volume in conjunction with the upswing throughout the industry. The growth in sales is also boosting the Company's financial performance. Even though personnel and financing costs did not correspond to the usual levels in the first quarter of 2010 as a consequence of the then pending bankruptcy proceedings, at EUR 3.5 million (Q1 2010: EUR 3.4 million), EBITDA continued to rise, as did EBIT at EUR 2.4 million (Q1 2010: EUR 2.2 million). According to the Managing Board, the favorable trend in the first quarter will continue in the course of 2011. The Company anticipates a slight rise in sales with no change in profit margins. The volume of orders on hand already represents 97.2% of the sales projected for the entire fiscal year 2011. Portrait paragon AG, listed in the Prime Standard of Deutsche Börse in Frankfurt develops, produces and markets innovative solutions in the field of automotive electronics. The portfolio of this direct supplier to the automotive industry includes products in the field of air quality, power train, acoustics, cockpit, stepper motors, media interfaces and controls. One excellent product is the undoubtedly world leading air quality sensor, AQS. Apart from its headquarters in Delbrück (North Rhine-Westphalia) there are branches in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg). Contact paragon AG Schwalbenweg 29 33129 Delbrück Tel.: +49 (0) 52 50 - 97 62-0 Fax: +49 (0) 52 50 - 97 62-60 Internet: www.paragon-online.de Email: info@paragon-online.de Press officer Matthias Hack Tel.: +49 (0) 52 50 - 97 62-141 Mobile: +49 (0) 162 1010724 Fax: +49 (0) 52 50 - 97 62-60 Email: matthias.hack@paragon-online.de 11.05.2011 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 Berlin, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------