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paragon AG

ots Ad hoc-Service: paragon AG <DE0005558696>

Delbrück (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
Earnings before interest and taxes
(EBIT) of the sensor manufacturer paragon AG, Delbrück, Germany, were
higher than projected in fiscal 2000. In accordance with IAS
accounting, EBIT amounted to Euro1.4 million (1999: Euro0.4 million).
This represents a 231% increase over the previous year. The company's
sales were in line with projections as well and increased
considerably, up 46% from Euro14.1 million in 1999 to Euro20.6
million in 2000. As expected, the significant rise in sales was
largely a result of the strong growth in the Sensor Products
division, where sales climbed 156% to Euro13.8 million (1999: Euro5.4
million). The Sensor Products division was consequently able to
improve its share in total sales to 67% (1999: 38%). paragon profited
in particular from the expansion of its international market
leadership in air quality sensors for the automotive industry,
currently the most important application of paragon sensor
technology. Earnings before taxes (EBT) improved to Euro0.9 million
in the reporting period (1999: Euro-66 thousand). The net income for
the year rose to Euro0.4 million after Euro95 thousand in fiscal
1999. With total assets at Euro24.2 million (1999: Euro12.0 million),
stockholders' equity amounted to Euro10.0 million at December 31,
2000. As a result of the inflow of funds raised through the IPO, the
equity ratio increased to 41% (1999: 9%). At the end of the reporting
period, liquid assets totaled Euro5.7 million (1999: Euro1.3
million). paragon plans to continue to pursue the transfer of its
sensor technology know- how to applications in new mass markets in
the current business year. The company will unveil the prototype of a
sensor for detecting natu-ral gas leaks in May 2001, which is earlier
than planned. In addition, para-gon expects that after exports
represented 10% of sales in 2000, it will be able to boost its
foreign sales in the current business year due to the rising
international demand for paragon sensors. Moreover, the company
re-cently signed a letter of intent concerning an acquisition in the
USA. If the deal goes through, the company's international business
will be expanded significantly. The Executive Board

Contact:

paragon AG, Investor RelationsIIII Tel.: (05250) 97
62-14; Fax: (05250) 97 62-61; investor@paragon-online.de

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