Strong Interest in New paragon Shares - Capital Increase Oversubscribed Three-and-a-Half Times

Strong Interest in New paragon Shares - Capital Increase Oversubscribed Three-and-a-Half Times

- Placement price of EUR 32.50

- Reduction from previous day's closing price (XETRA) comes to 3.85%

- Gross proceeds of issue of EUR 13.37 million for the continuation of the growth course

- Majority interest remains with founder Klaus Dieter Frers

Delbrück, Germany, October 5, 2016 - Upon completion of the accelerated book-building process for the cash capital increase resolved on October 4, 2016, the Management Board of paragon AG (ISIN DE0005558696), with the approval of the Supervisory Board, has today set the placement price at EUR 32.50 per share.

The company's share capital has thereby been increased by 10% to EUR 4,526,266 with the partial use of the existing authorized capital. The new shares carry dividend rights as of January 1, 2016. The reduction on the previous day's closing price on the Frankfurt Stock Exchange (XETRA) amounts to 3.85%.

"The very high oversubscription within such a short period of time of the volume that has been offered at a comparatively low reduction is an impressive reflection of the strong interest in our company's special growth story on the capital market," says Klaus Dieter Frers, founder and Chief Executive Officer of paragon AG. "With our new investors, we are laying a further foundation for the next stage in our company's development, in which we want to use an improved balance sheet structure to push ahead more quickly with electromobility."

The offering was oversubscribed three-and-a-half times. A total of 411,478 new shares were placed with qualified investors from Germany, the UK, France, Spain and Finland, as well as with the Chief Executive Officer, major shareholder and founder of the company, Klaus Dieter Frers. "Many investors have seen my willingness to go along with the capital increase as a strong commitment to the company and to its very good future prospects," Frers continued. Taking into account the subscribed shares and a permanent voting proxy that was granted at the same time for the 30,871 shares held by his wife, Mr. Frers continues to hold the majority of the voting rights in paragon AG even after the capital increase.

The capital increase will provide the company with gross proceeds of issue of EUR 13.37 million. The capital increase was supported by Hauck & Aufhäuser as sole global coordinator and sole bookrunner.

Disclaimer:

THIS PUBLICATION IS FOR INFORMATIONAL PURPOSES ONLY AND CONSTITUTES NEITHER AN OFFER TO SELL NOR AN INVITATION TO TREAT NOR AN INVITATION TO SUBSCRIBE TO SHARES OR OTHER SECURITIES OF PARAGON AG. A PUBLIC OFFERING OF SECURITIES IS NOT TAKING PLACE AND IS NOT INTENDED.

THIS PUBLICATION AND THE INFORMATION CONTAINED HEREIN ARE NOT INTENDED FOR DIRECT OR INDIRECT DISCLOSURE OR PUBLICATION IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, OR JAPAN. THE PARAGON AG SECURITIES DESCRIBED HEREIN ARE NOT AND WILL NOT BE REGISTERED PURSUANT TO THE APPLICABLE VERSION OF THE U.S. SECURITIES ACT OF 1933 ("SECURITIES ACT") OR THE LAWS OF A U.S. STATE AND MAY ONLY BE SOLD OR OFFERED FOR SALE IN THE UNITED STATES OF AMERICA ON THE BASIS OF AN EXEMPTION FROM THE REGISTRATION REQUIREMENT SET OUT IN THE SECURITIES ACT OR THE LAWS OF A U.S. STATE OR IN THE EVENT OF SUCH REGULATIONS BEING NON-APPLICABLE. THERE WILL BE NO PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES OF AMERICA.

Further information is available at www.paragon.ag/en/investors. Follow us on Twitter @paragon_ir

Company Profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and sells innovative automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the business segments of Sensors, Acoustics, Cockpit, E-mobility and Body Kinematics. In addition to its headquarters in Delbrück (North Rhine-Westphalia), paragon AG and its subsidiaries have locations in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Württemberg), and Bexbach (Saarland), as well as in Kunshan (China) and Austin (Texas, USA).

Financial Press Contact & Investor Relations

paragon AG
Dr. Kai Holtmann
Artegastraße 1
D-33129 Delbrück
Phone: +49 (0) 52 50 - 97 62-140
Fax: +49 (0) 52 50 - 97 62-63
E-Mail: kai.holtmann@paragon.ag