New large shareholder puts his trust in paragon

paragon AG / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- New large shareholder puts his trust in paragon · Baden-Württembergische Versorgungsanstalt für Ärzte, Zahnärzte und Tierärzte increases share in voting rights to 9.86% · Largest shareholder after company founder Klaus Dieter Frers · Absolute Capital, a fund formerly managed by Florian Homm, sold its shares in paragon Delbrück, 28 April 2008 - paragon AG welcomes a new large shareholder with a track record in long-term investments. The Baden-Württembergische Versorgungsanstalt für Ärzte, Zahnärzte und Tierärzte, a retirement fund for doctors, dentists and veterinarians, which already has held paragon shares in the recent past, has increased its share in paragon to 405,800 voting rights, or 9.86% of all voting rights. 'We are very pleased to see that Versorgungsanstalt has significantly increased their holding in paragon. This long-term investment is a clear signal for the capital market,' commented CEO Klaus Dieter Frers. 'Versorgungsanstalt puts their trust in the strategy, performance and future potential of our company.' Versorgungsanstalt is now the second largest shareholder, after paragon founder and CEO Frers, who continues to hold approximately 52%. The investor acquired the shares in a private transaction from Absolute Capital. The fund, previously managed by Florian Homm, had held the shares since May 2007. 'We are glad to have found a solid and strong partner for the future of paragon in Versorgungsanstalt,' said Frers. About paragon paragon AG is a direct supplier to the automotive industry and is listed on the Deutsche Börse Prime Standard index in Frankfurt/Main, Germany. The Company develops, manufactures, and markets innovative solutions in its Automotive (Car Media Systems/Climate Systems/Instrumentation and Control Systems), Electronic Solutions, and Building Technology divisions. Its product portfolio includes the world’s leading AQS air quality sensor by far as well as hands-free speaking equipment and instrumentation systems. In addition to its headquarters in Delbrück, North Rhine-Westphalia, paragon also operates locations in Suhl, Thuringia (production), Cadolzburg, Bavaria (car media systems), St. Georgen, Baden-Württemberg (instrumentation systems) and Heidenheim, Baden-Württemberg (Electronic Solutions sales). In the international arena, the paragon Group is represented by wholly-owned subsidiaries in Grand Rapids, Michigan, USA (development, production, and sales) and Osaka, Japan (applications and sales) as well as sales offices in Paris, France and Turin, Italy. In fiscal 2007, the paragon Group generated sales totaling €108.9 million with a workforce of 594 employees. 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 Head of Corporate Communications Matthias Hack Phone: +49 (0) 52 50 - 97 62-141 Fax: +49 (0) 52 50 - 97 62-60 E-mail: matthias.hack@paragon-online.de Investor Relations Haubrok Investor Relations GmbH Thomas Vormann Phone: +49 (0) 2 11 - 3 01 26-0 Fax: +49 (0) 2 11 - 3 01 26-172 E-Mail: t.vormann@haubrok.de 28.04.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- 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 Internet: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------