paragon expects higher profits

paragon AG / Key word(s): Change in Forecast 01.12.2010 08:39 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, December 1, 2010 - The upswing at paragon AG is continuing. In terms of sales, paragon is totally on budget for 2010, and profits are significantly higher than anticipated six months ago. Additionally, the Managing Board is already announcing the 2011 budget approved by the Supervisory Board at its meeting on November 29, 2010. It is already clear at this time that paragon will achieve its sales target of EUR 58 million. Additionally, the Company will achieve significantly higher earnings than originally projected. At this point, paragon has already surpassed the announced operating result (EBITDA excluding restructuring costs) in the amount of EUR 7.5 million. The Managing Board anticipates that this figure will be at least 20% higher by year-end 2010. The Managing Board expects growth to continue at a high level in fiscal 2011. Sales are projected to exceed EUR 60 million. Despite necessary new hires, paragon's operating result will definitely surpass the prior-year level in 2011. About paragon As a company listed in the Prime Standard segment of the German Stock Exchange in Frankfurt, paragon AG develops, produces, and markets trendsetting solutions in the field of automotive electronics. 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. Headquartered in Delbrück (North Rhine-Westphalia), the company also has facilities in Suhl (Thuringia), Nuremburg (Bavaria), and St. Georgen (Baden-Württemberg). In the 2010 financial year, paragon aims to generate revenue in excess of EUR 58 million with more than 300 employees. Contact paragon AG Schwalbenweg 29 33129 Delbrück Phone: +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 Press Officer Matthias Hack Phone: +49 (0) 52 50 - 97 62-141 Mobile: +49 (0) 162 1010724 Fax: +49 (0) 52 50 - 97 62-60 E-mail: matthias.hack@paragon-online.de Corporate Communications Marc Götte Phone: +49 (0) 52 50 - 97 62-161 Fax: +49 (0) 52 50 - 97 62-60 E-mail: marc.goette@paragon-online.de 01.12.2010 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 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 Announcement DGAP News-Service ---------------------------------------------------------------------------