paragon AG Acquires Remaining Stake in paragon fidelity GmbH

paragon AG / Acquisition 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. ---------------------------------------------------------------------- paragon AG Acquires Remaining Stake in paragon fidelity GmbH Acquisition of remaining 49% from IKB Private Equity has been finalized Delbrück, August 25, 2006 – paragon AG has made another important step in its expansion strategy. With retroactive effect as of January 1, 2006, the company, which is listed in the Prime Standard segment of the German Stock Exchange, is acquiring the remaining 49% stake in paragon fidelity GmbH in Cadolzburg near Fürth, Bavaria (formerly Cullmann GmbH). paragon AG had acquired a majority stake in Cullmann GmbH in August 2005. In the course of the integration within the Group, Cullmann GmbH was renamed paragon fidelity GmbH with retroactive effect as of January 1, 2006. paragon acquires the remaining 49% from IKB Private Equity. Now all requirements have been made to utilize the growth potential in the business unit Car Media Systems and to exploit all synergy effects in the complete group. Amongst other things the components will no longer be sourced in foreign countries, but will be produced in-house in paragon’s facilities in Suhl, Thuringia, Germany. paragon AG Schwalbenweg 29 33129 Delbrück www.paragon-online.de ISIN: DE0005558696 Contact: Haubrok Investor Relations Michael Müller, Fabian Lorenz Phone: +49 211 30126-0/Fax: +49 211 30126-172 E-mail: m.mueller@haubrok.de DGAP 25.08.2006 ---------------------------------------------------------------------- Language: English Issuer: 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 WWW: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------