Stable business trend

paragon AG / Key word(s): Quarter Results 16.11.2011 08:30 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. --------------------------------------------------------------------------- Delbrück, November 16, 2011 - In the first nine months of 2011, paragon's sales rose by 12% to EUR 51.0 million (prior year: EUR 45.5 million). Earnings grew at an even faster rate; the operating margin (EBIT in relation to sales) reached 14.6% (prior year: 11.3%). The period from July 1 to September 30, 2011 was the best quarter to date in the current fiscal year, with sales of EUR 17.6 million. EBITDA rose by 20% to EUR 10.6 million (prior year: EUR 8.9 million) in the first nine months; EBIT surged by 45% to EUR 7.5 million (prior year: EUR 5.2 million). The operational developments in the Company are evident from cash flow from operating activities, which rose from EUR 1.9 million (prior year) to EUR 6.1 million in the first nine months. As at September 30, 2011, paragon posted net income for the year according to IFRS of EUR 4.6 million (prior year: EUR 4.2 million); earnings per share rose by 9% to EUR 1.13 (prior year: EUR 1.03). paragon intends to ensure that the performance of the first nine months is reflected by the performance of 2011 as a whole. Despite considerable investment in personnel and technology, paragon's earning figures will mirror its positive business developments. paragon is ahead of plan in the repayment of bank debt, which stood at EUR 16.3 million as of September 30, 2011 and is to be reduced to EUR 15 million by December 31, 2011. At the same time, the Managing Board is confirming the objective for an increase in free cash flow, which should grow to EUR 8 million by the end of the year. 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 16.11.2011 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 Germany 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 ---------------------------------------------------------------------------