paragon AG / Insolvency/Change of Personnel


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Delbrück, January 20, 2010: paragon AG is to be continued as a going
concern, as previously announced. The local court in Paderborn opened the
Company's insolvency proceedings on January 1 this year. Dr. Frank Kebekus,
an attorney who runs a law firm in Paderborn, has been appointed as
insolvency administrator. The Company plans to file its finalized
insolvency plan with the local court in Paderborn over the next few days. A
debtor-in-possession (DIP) loan that had been extended but not drawn down
has now been cancelled.

The timetable for the forthcoming insolvency proceedings has now been
finalized. Dr. Kebekus will inform the Company's creditors about the
current status of these proceedings at a creditors' meeting on February 19,
2010. A special consultation meeting will subsequently be held to discuss
the Company's insolvency plan. The receivables entered in the insolvency
register will be examined as part of a written procedure on March 5.

Personnel-related decisions were also taken at the time the Company's
insolvency proceedings were being opened. Chief executive officer Klaus
Dieter Frers and restructuring director Andrew Seidl are to remain in post,
while chief financial officer Markus Werner will step down from the
executive board by mutual consent as of January 31 this year; his duties
will be performed by others at the Company until further notice.

At the beginning of this year the Company possessed an adequate liquidity
buffer. Due to an upturn in business, paragon is once again able to pay its
wages and salaries as well as VAT in full. According to Frers, the Company
is able to finance itself from its own resources.

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

20.01.2010  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