paragon AG publishes financial forecast for 2010

paragon AG / Results Forecast

03.05.2010 09:46

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.

---------------------------------------------------------------------------

paragon AG publishes financial forecast for 2010

Delbrück, May 3, 2010 - 'Renewed vigor, powerful ideas', that is the motto
under which paragon AG is getting ready for its post-insolvency phase.
Expanding its established portfolio, the company plans to exploit and shape
the trend towards new automotive drive systems using research carried out
during its period of crisis. Chief Executive Officer Klaus Dieter Frers
predicts positive financial results for 2010: revenue of EUR58 million and
a positive operating free cash-flow in the millions. paragon AG expects
earnings adjusted by restructuring costs and costs of the insolvency
proceeding (operating EBITDA) in the amount of EUR7.5 million. Taking into
consideration the extraordinary expenses, positive EBIT/EBT figures are
likely to be possible in 2010, according to Board statement.

The company got into difficulties at the end of 2008, in the wake of the
worldwide crisis in the financial and automotive industries. After
extensive restructuring, paragon was generating an operating profit again
from the second quarter of 2009, but the company was still unable to reach
an agreement with the banks. Consequently, the Board of Directors
deliberately initiated an insolvency plan procedure on October 5, 2009. As
positive developments continued at paragon over the following months, an
overwhelming majority of the creditors finally approved the insolvency plan
on April 16, 2010. After the current technical phase to complete the
procedure, the company looks set to emerge from insolvency on June 1, 2010.

In future, paragon will be concentrating fully on its successful role as an
innovative supplier to the automotive industry. The company is active in
seven product areas: air quality, drive systems, acoustics and cockpit
systems, stepper motors, media interfaces and control systems. Production
will remain in Suhl (Thuringia) and St. Georgen (Baden-Württemberg). In
addition, paragon will focus on electronic solutions for new drive systems:
the company will be launching its first products for hybrid vehicles and
e-mobility in the first half of this year.

Overall, paragon currently employs 321 people at its four sites in Germany:
56 in Delbrück, 189 in Suhl, 50 in St. Georgen and 26 in Nuremberg. Due to
a significant increase in demand from automotive manufacturers, the company
has already started to recruit new staff at its sites in Delbrück
(financial control, development) and Nuremberg (development, production).

The deferred financial reports for 2008 and 2009 will be provided in
several stages. The company will be reporting on both of those years and on
the short financial year for the period when insolvency proceedings opened
at a financial statements press conference in August and at a General
Shareholders' Meeting in the autumn. The company will return to the
standard reporting period (calendar year) on January 1, 2011.

Portrait

Listed in the Prime Standard segment of Deutsche Börse in Frankfurt am
Main, paragon AG develops, produces and distributes pioneering automotive
electronics solutions. The portfolio of this direct supplier to the
automotive industry includes products in the segments of air quality, drive
systems, acoustics, cockpit systems, stepper motors, media interfaces and
control systems. One of its stand-out products is the AQS air quality
sensor, the clear global market leader. With headquarters in Delbrück
(North Rhine-Westphalia), the company also has sites in Suhl (Thuringia),
Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg). In the 2010
financial year paragon aims to generate revenue in excess of EUR58 million
with more than 300 employees.

Contact

paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0)5250 97620
Fax: +49 (0)5250 976 260
Website: www.paragon-online.de
Email: info@paragon-online.de

Press Officer

Matthias Hack
Tel.: +49 (0)5250 976 2141
Cell: +49 (0)162 101 0724
Fax: +49 (0)5250 976 260
Email:  matthias.hack@paragon-online.de

Corporate Communications

Marc Götte
Tel.: +49 (0)5250 976 2161
Fax: +49 (0)5250 976 260
Email: marc.goette@paragon-online.de


03.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
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, München, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
---------------------------------------------------------------------------