Restructuring of paragon AG completed

paragon AG / Mergers & Acquisitions

01.09.2010 09:27

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.

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  - Assets of paragon finesse GmbH acquired

  - Production of instrumentation to be concentrated in Suhl

  - Workforce increases to 317 employees and 40 contract workers

Delbrück, September 1, 2010 - paragon AG has completed its restructuring
just three months after successfully emerging from insolvency. The listed
company will acquire the assets of its former subsidiary paragon finesse
GmbH on September 1, 2010, ensuring continuity for both customers and
employees. Headquartered in Delbrück (North Rhine-Westphalia), the company
also has branches in Suhl (Thuringia), Nuremberg (Bavaria), and St. Georgen
(Baden-Württemberg).

The former paragon Group was dissolved on January 1, 2010 when insolvency
proceedings opened. On June 1, 2010, the former parent company paragon AG
began operating fully independently again, following a vote in favor of
this at the creditors' meeting on April 16, 2010.

Whereas a number of inactive subsidiaries were wound up, parts of paragon
finesse GmbH's business will continue. This company operates at the
Nuremberg and St. Georgen sites and is responsible for the media interfaces
and cockpit product groups. paragon AG and the insolvency administrator of
paragon finesse GmbH have reached agreement about acquiring the
subsidiary's assets with effect from September 1, 2010.

paragon AG is acquiring the assets at the development site in Nuremberg,
which will be run as a branch of paragon AG in the future. All employees in
Nuremberg will be taken on by paragon AG. The St. Georgen site will also be
retained. The assets of the stepper motors business will be acquired by
paragon AG and also run as one of its branches. In the future, paragon AG's
production of instrumentation will be concentrated in Suhl; the affected
employees are being offered jobs in Suhl.

The parties to the deal have agreed not to disclose the purchase price,
which paragon can pay out of its cash flow due to its strong performance.
As a result of acquiring the assets of paragon finesse GmbH, paragon AG's
workforce will increase from 279 (including 27 contract workers) to 357
(including 40 contract workers).

Besides the central business units, which include marketing & sales,
Delbrück is home to the research & development unit for the air quality,
drive systems, and acoustics product groups. Sensor elements, electronics,
and instrumentation are manufactured in Suhl. Nuremberg is responsible for
the research & development of the media interfaces and cockpit product
groups, while St. Georgen takes care of the research, development, and
production of stepper motors.

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


01.09.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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 Hamburg, München, Düsseldorf, Berlin, Stuttgart
 
End of News                                     DGAP News-Service
 
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