paragon with significant earnings growth in the first quarter of 2007

paragon AG / Quarter Results

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· Net income for the quarter increases by 26.1%
· EBITDA margin rises to 19.2%
· Sales increase by 5.9% as planned

Delbrück, May 9, 2007. paragon AG has confirmed its forecasts for fiscal
2007: The first signs of a focussing on earnings power – as announced by
the Company at the end of 2006 – are already visible after the end of the
first quarter. Net income of the direct supplier to the automotive industry
increased by 26.1% in the first quarter to €0.6 million (Q1 2006: €0.4
million). As planned, Group sales increased by 5.9% over the prior-year
period to €25.6 million in the first quarter of 2007 (Q1 2006: €24.2
million). Over the course of the year, earnings will continue to increase
at a greater rate than sales.

Group sales increased by €1.4 million in the first quarter of the year in
comparison with the prior-year period. Sales in the core Automotive
division increased by 2.5% to €20.2 million (Q1 2006: €19.7 million)
despite the fact that the first quarter is traditionally the weakest one of
the year. The Electronic Solutions division surpassed sales projections:
Based on follow-up orders from new customers acquired in 2006, paragon
generated sales of €5.4 million (Q1 2006: €4.5 million) in this segment
(including Building Technology), an increase of 20.9% over the prior-year
period.

During the period under review, earnings before interest, taxes,
depreciation, and amortization (EBITDA) increased by 18.8% to €4.9 million
(Q1 2006: €4.4 million). The EBITDA margin improved accordingly from 18.2%
to 19.2%. EBIT performed even better with an increase of 22.0% to €2.2
million (Q1 2006: €1.8 million). This resulted in an EBIT margin of 8.5%
(Q1 2006: 7.4%). Net income for the quarter rose by 26.1% from €448
thousand to €565 thousand. This corresponds to earnings per share of €0.14
(Q1 2006: €0.11).

The good start to fiscal 2007 confirms the forecasts for the year as a
whole. The company plans to increase sales by 5% to 10% over the previous
year (2006: €110.8 million). The efficiency increases introduced will lead
to earnings significantly outperforming sales in full-year 2007 as well.

The quarterly report can be downloaded at http://www.paragon-online.de
under the section 'Investor Relations'.


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
E-Mail: info@paragon-online.de

Investor Relations
Haubrok Investor Relations GmbH
Fabian Lorenz
Tel.: +49 (0) 2 11- 3 01 26 -0
Fax: +49 (0) 2 11 - 3 01 26 -172
E-Mail: f.lorenz@haubrok.de


DGAP 09.05.2007 
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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
 
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