Successful restructuring and strategic realignment

paragon AG / Final Results 12.08.2010 08:17 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, August 12, 2010 - CEO Klaus Dieter Frers confirmed the forecasts for 2010 at the financial statements press conference for 2008, 2009, and the stub period 2010 (period of insolvency from January 1 to May 31, 2010). paragon, a listed company, has been operating profitably again since the second quarter of 2009 following the slump caused by the crisis in the automotive sector. For 2010, it is aiming for sales of EUR58 million and adjusted EBITDA (excluding expenditure for restructuring and insolvency) of EUR7.5 million. After successfully getting over the insolvency paragon took numerous action steps aimed at enabling it to operate profitably even in periods of poor sales. This extensive action program led to a net saving of EUR11.4 million in 2009 and will generate further savings of EUR14.4 million in 2010 and subsequent years. Debt was significantly reduced; bank borrowings including profit participation rights decreased by 67.5% from EUR69.8 million to EUR22.7 million. Right after getting over the insolvency paragon produced its financial report for the stub period 2010 as well as the outstanding reports for 2008 and 2009. In 2008, it almost remained on budget with sales of EUR112.0 million, although it made an operating loss (EBIT) of EUR66.1 million due to subsequent impairment losses related to the insolvency. The company then felt the full effect of the automotive crisis in 2009 when it posted sales of EUR67.3 million and an operating loss (EBIT) of EUR40.5 million, also due to impairment losses. paragon turned the corner in 2010, with the first five months proving to be very positive: Sales reached EUR25.1 million and EBIT amounted to EUR100.3 million including restructuring gains. paragon will present its strategic realignment and the results for 2008, 2009, and the stub period 2010 at the annual general meeting of shareholders, which will take place on Thursday, September 30 at the Stadthalle in Delbrück. 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, media interfaces and cockpit 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 sales of EUR58 million. 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 12.08.2010 Ad hoc announcement, Financial News and Press 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 Hamburg, München, Düsseldorf, Berlin, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------