Signature of Letter of Intent Regarding Initial Partial Sale of Voltabox Share Block and Awarding of Call Options

Signature of Letter of Intent Regarding Initial Partial Sale of Voltabox Share Block and Awarding of Call Options

Delbrück, Germany, December 10, 2020 - Today, paragon GmbH & Co. KGaA [ISIN DE0005558696] signed a letter of intent with Swiss investors regarding the conclusion of a purchase agreement for an initial block of shares amounting to 18% of the share capital of subsidiary Voltabox AG. Subject to the completion of an in-depth due diligence review, a purchase agreement for the partial block will be concluded by the end of January. The letter of intent also provides that, in addition to the sale of the block of shares, various call options will be granted to allow investors to gradually increase their stake in Voltabox AG to 29.9% and ultimately to around 50%.

paragon would remain a Voltabox shareholder until the call options are exercised in order to participate in the expected recovery in value of the financial investment. However, long-term involvement with Voltabox AG is not planned.

In the meantime, paragon took advantage of the favorable market development to reduce its stake in Voltabox to currently around 54.5 % through over-the-counter reallocations. With the planned investor participation, paragon's stake in Voltabox AG would decrease to a level that will lead to termination of the full consolidation of Voltabox AG in the consolidated financial statements of paragon GmbH & Co. KGaA.

About paragon GmbH & Co. KGaA

paragon GmbH & Co. KGaA (ISIN DE0005558696), which is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange, develops, produces and distributes forward-looking solutions in the field of automotive electronics, body kinematics and e-mobility. As a market-leading direct supplier to the automotive industry, the company's portfolio includes the Electronics operating segment's innovative air-quality management, state-of-the-art display systems and connectivity solutions, and high-end acoustic systems. In the Mechanics operating segment, paragon develops and produces active mobile aerodynamic systems. In addition, the Group holds a stake in Voltabox AG (ISIN DE000A2E4LE9), a subsidiary that is also listed on the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt a.M., which is active in the rapidly growing electromobility segment with cutting-edge lithium-ion battery systems developed inhouse.

In addition to the company headquarters in Delbrück (North Rhine-Westphalia, Germany), paragon GmbH & Co. KGaA and its subsidiaries operate sites in Suhl (Thuringia, Germany), Landsberg am Lech and Neu-Ulm (Bavaria, Germany), Markgröningen and St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany), Aachen (North Rhine-Westphalia, Germany) as well as in Kunshan (China), Oroslavje (Croatia) and Austin (Texas, USA).

Additional information about paragon can be found at www.paragon.ag.

Capital Market & Press Contact

paragon GmbH & Co. KGaA

Stefan Westemeyer
Artegastrasse 1
33129 Delbrück, Germany
Phone: +49 (0) 52 50 - 97 62-141
Fax: +49 (0) 52 50 - 97 62-63
Email: investor@paragon.ag