paragon AG: Strong growth in first nine months

paragon AG / Quarter Results 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. ---------------------------------------------------------------------- paragon AG: Strong growth in first nine months - Sales increase 39.8% to €78.1 million - EBITDA climbs 53.4% to €14.5 million - Air quality sensors bring breakthrough in the mid-range category Delbrück, 8. Delbrück, November 8, 2006 – paragon ISIN DE0005558696) is continuing the growth track in the first nine months of 2006. Group sales rose by 39.8% to €78.1 million. The Company posted record revenue of €27.5 million in the third quarter alone. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 53.4% to €14.5 million (previous year: €9.5 million). Adjusted EBIT increased by 41.6% to €6.2 million during the period under review. After writing down intangible assets, the increase was 15.9%, or €5.0 million (previous year: €4.4 million). Special tax effects led to a decrease in net income for the period to €963 thousand (previous year: €1.4 million). This translates into diluted and undiluted earnings of €0.23 per share (previous year: €0.34 undiluted, €0.33 diluted). By the end of the year, the Managing Board expects earnings per share to have surpassed the previous year’s level (December 31, 2005: €0.55). In the core Automotive division, sales climbed 60.7% to €62.9 million (previous year: €39.1 million). With an 80.5% share (previous year: 70.1%), the division not only makes the greatest contribution to total sales, but is also the growth engine for the entire paragon Group. The Electronic Solutions division generated sales of €14.4 million for paragon (previous year: € 16.1 million). This development is primarily attributable to a reallocation within the Group in the first quarter of 2006. The Building Technology division increased its sales in the first nine months to €846 thousand (previous year: €607 thousand). Based on the backlog of orders, the Managing Board continues to anticipate that sales will exceed €110 million in the current fiscal year. In the coming year, new orders in the Climate Control division will contribute to further growth. Starting in 2007, for example, a German customer will use air quality sensors from paragon in its high-volume compact and mid-range category vehicles. paragon AG Schwalbenweg 29 33129 Delbrück ISIN-No.: DE0005558696 Contact: Investor Relations Haubrok Investor Relations GmbH Michael Müller, Fabian Lorenz Tel.: +49 211 30126-117 / Fax: +49 211 30126-172 E-Mail: office@haubrok.de DGAP 08.11.2006 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------------