paragon AG: record year 2006, dividend raise planned

paragon AG / Final Results/Dividend Release 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. ---------------------------------------------------------------------- - Sales rose 38.2% to €110.8 million - EBITDA grew by 45.3% to €20.2 million - Plans to increase dividend by 50.0% to €0.30 per share - Further improvement in earning power planned for 2007 Delbrück, March 28, 2007 – 2006 was yet another record year for paragon AG. During the past fiscal year, the direct supplier to the automotive industry increased its sales by 38.2% from €80.2 million to €110.8 million. This growth confirmed the company’s strategy of focusing on strong-growth niche markets. paragon reported its steepest growth in earnings before interest, taxes, depreciation and amortization (EBITDA), which climbed 45.3% to €20.2 million (€13.9 million in 2005), corresponding to an EBITDA margin of 18.3% (17.3% in 2005). During the reporting period, EBIT without the statutory depreciation of noncurrent assets actually grew by 50.0% to €9.9 million (€6.6 million in 2005), resulting in an EBIT margin of 9.0% (8.2% in 2005); the increase with the above depreciation shows a rise of 28.8% to €8.5 million. Here, despite the renewed increase in investments at €33.2 million (previous year: €29.6 million) and taxes relating to other accounting periods, the company reported net income of €2.2 million, equaling last year's figure. The fourth quarter in particular was crucial to this good result; in this period alone, paragon generated earnings of €1.1 million. The Automotive division was again the driver of growth within the paragon Group. In this core segment, sales showed above-average growth, climbing from €57.3 million to €87.7 million. With this figure, the Automotive division achieved an 80% share in total sales (2005: 71.7%). The Electronic Solutions division accounted for €23.1 million (€22.8 million in 2005) of the result. This figure includes sales generated in the U.S. (€11.2 million; €8.7 million in 2005) and Building Technology (€1.0 million; €0.7 million in 2005). In consideration of tax expenses relating to other accounting periods, earnings per share rose to €0.61 (€0.55 in 2005). As a result of the upward trend in profits, the Board of Management and Supervisory Board have decided to propose a dividend hike at the shareholders’ meeting in 2007. They will suggest paying out a dividend of €0.30 per share (€0.20 in 2005). With the current figures, paragon has confirmed or, in some cases, outperformed the forecasts for fiscal 2006. For fiscal 2007, the Board of Directors plans to up revenues between 5 and 10%, which would mean that net revenue had tripled within a space of only five years (2003 - 2007). However, this year’s focus will be on a major boost to earning power and an improvement in the equity ratio. paragon still has its sights set on sales of €200 million in 2010. 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 Investor Relations Haubrok Investor Relations GmbH Michael Müller, Fabian Lorenz Phone: +49 (0) 2 11- 3 01 26 -0 Fax: +49 (0) 2 11 - 3 01 26 -172 E-Mail: f.lorenz@haubrok.de DGAP 28.03.2007 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------------