paragon continues on long-term course for growth

In fiscal 2005, paragon AG again successfully pursued its
growth strategy. During the year, the company, which is listed in the Prime Standard
on the Deutsche Börse stock exchange, increased its revenue by 23.9% to €80.2
million.
As forecast, the company’s operating result experienced the steepest growth:

paragon successfully boosted growth in EBITDA by 34,5% to €13.9 million. In view of
this positive business development, the Board of Directors announced plans to double
the dividend to €0.20 per share. At paragon’s financial statement press conference,

Chief Executive Officer Klaus Dieter Frersexpressed his immense satisfaction with the last financial year: “Once again our growthoriented strategy has made it possible for us to push our products in the toughly contested automotive supplier market. Our focus on exciting innovations and our ongoing advance into new niches continue to be successful.” This has enabled paragon to counter the cost pressures that are affecting many other suppliers in the automotive industry.

Within the short space of two years, paragon almost doubled its revenue. It grew its earnings from €40.7 million in 2003 to €80.2 million in 2005. This result can be attributed not only to the company’s original business but also to its fast, smooth integration of new business units.

“The combination of internal and external growth continues to be the key to our success. It helps us to save time and to reach our goals much faster,” Klaus Dieter Frers explains. Another piece of good news focuses on development in the USA. The U.S. segment of the group contributed €8.7 million (€5.7 million in 2004) to total revenues, a figure that represents a 51.4% rise on its share in 2004.