paragon AG / Insolvency


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Management Board of paragon AG withdraws application for

Delbrück, December 16, 2009. On January 1, 2010, the local court in
Paderborn is to open proceedings concerning the insolvency of paragon AG.
In January 2010 the company will also file a final insolvency plan with the
court, which will then be presented to the creditors' meeting for a
decision. Klaus Dieter Frers is to remain in post as chief executive
officer even after the insolvency proceedings have been opened.

At the same time, the Management Board will withdraw the application for
self-administration filed with the Paderborn local court. Since the
application for insolvency was filed on October 5, 2009, paragon has almost
completed the restructuring program begun in autumn 2008 in close
consultation with the preliminary insolvency administrator Dr. Frank
Kebekus. By the end of the year the workforce of 660 will have been cut to
around 400. The company has thus adjusted to the fall in orders in the wake
of the global crisis in the automotive industry and has been operating
profitably again for a number of months.

paragon AG is a direct supplier to the automotive industry and is listed on
the Deutsche Börse Prime Standard index in Frankfurt/Main, Germany. The
Company develops, manufactures, and markets innovative solutions in its
Automotive (Sensors/Actuators and Cockpit Systems) and Electronic Solutions
divisions. Its product portfolio includes the world's leading AQS air
quality sensor by far as well as hands-free speaking equipment and
instrumentation systems. In addition to its headquarters in Delbrück, North
Rhine-Westphalia, paragon also operates locations in Suhl, Thuringia; St.
Georgen, Baden-Württemberg; Nuremberg, Bavaria; and Heidenheim,
Baden-Württemberg. In fiscal 2007, the paragon Group generated sales
totaling EUR108.9 million with a workforce of 594 employees.

paragon AG
Schwalbenweg 29
33129 Delbrück
Phone: +49 (0) 52 50 - 97 62 - 0
Fax: +49 (0) 52 50 - 97 62 - 60

Press Officer
Matthias Hack
Phone: +49 (0) 52 50 - 97 62 - 141
Fax: +49 (0) 52 50 - 97 62 - 60

Corporate Communications
Marc Götte
Phone: +49 (0) 52 50 - 97 62 - 161
Fax: +49 (0) 52 50 - 97 62 - 60

16.12.2009  Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at and

Language:     English
Company:      paragon AG
              Schwalbenweg 29
              33129 Delbrück
Phone:        +49 (0)5250 97 62 - 0
Fax:          +49 (0)5250 97 62 - 60
ISIN:         DE0005558696
WKN:          555869
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Düsseldorf, Hamburg, Stuttgart
End of News                                     DGAP News-Service