EXHIBIT 5
                                                                       ---------


                      [LETTERHEAD OF PEPPER HAMILTON LLP]




July 25, 2001

Paragon Technologies, Inc.
600 Kuebler Road
Easton, PA  18040

Re:Registration Statement on Form S-8 relating to the Paragon Technologies, Inc.
   1997 Equity Compensation Plan, as amended and restated
   -------------------------------------------------------

Ladies and Gentlemen:

                  We have acted as counsel to Paragon Technologies, Inc., a
Pennsylvania corporation (the "Company") in connection with the Registration
Statement on Form S-8 (the "Registration Statement") filed by the Company with
the Securities and Exchange Commission pursuant to the Securities Act of 1933,
as amended (the "Act"), relating to an additional 300,000 shares of the
Company's common stock, par value $1.00 per share (the "Common Stock"), reserved
for and issuable under the Paragon Technologies, Inc. 1997 Equity Compensation
Plan, as amended and restated (the "Plan").

                  In rendering this opinion, we have examined the Registration
Statement and the exhibits thereto, including the Plan, certain records of the
Company's corporate proceedings as reflected in its minute books and such
statutes, records and other documents as we have deemed relevant. In our
examination, we have assumed the genuineness of documents submitted to us as
originals and the conformity with the originals of all documents submitted to us
as copies thereof.

                  Based on the foregoing, it is our opinion that the shares of
Common Stock issuable under the Plan will be, when issued and paid for in
accordance with the terms of the Plan, validly issued, fully paid, and
non-assessable.

                  The opinion set forth above is limited to the Business
Corporation Law of the Commonwealth of Pennsylvania, as amended.

                  We hereby consent to the use of this opinion as Exhibit 5 to
the Registration Statement. In giving such consent, we do not thereby admit that
we are acting within the category of persons whose consent is required under
Section 7 of the Act and the rules or regulations of the Commission thereunder.

                  The opinion expressed herein is solely for your benefit and
may be relied upon only by you.

                                  Sincerely,

                                  /s/ PEPPER HAMILTON LLP
                                  ----------------------------------------------

                                  PEPPER HAMILTON LLP