[PARAGON TECHNOLOGIES LOGO]                                                 NEWS
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FOR:                  PARAGON TECHNOLOGIES, INC.

CONTACTS:             Joel Hoffner, President and CEO
                      610-252-3205
                      610-252-3102 (Fax)
                      www.ptgamex.com


                 PARAGON TECHNOLOGIES, INC. ANNOUNCES ENGAGEMENT
                              OF PENN VALLEY GROUP

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EASTON, PA -- October 26, 2006 -- Paragon Technologies, Inc. (AMEX:PTG), a
leading supplier of "smart" material handling systems and "software-driven"
warehouse and distribution center solutions, announced today that the Company
has engaged the Penn Valley Group (PVG) to assist the Company in its pursuit of
growth and enhanced profitability by exploring a targeted acquisition strategy
within the supply chain, warehousing, distribution and logistics execution and
management sectors. While preparing to commit capital to finding and investing
in new businesses, the Company will continue to operate and grow its core
business.

Joel Hoffner, President and Chief Executive Officer, stated, "We are pleased
that the Board of Directors has taken this decisive step to facilitate the
strategic and synergistic acquisition strategy that has been our vision. We are
looking forward to working with the PVG team who, in turn, will be working
closely with the Board of Directors as well as our management team in
identifying and analyzing opportunities."

Bruce H. Luehrs, PVG Managing Partner, stated, "We believe there are a number of
attractive acquisition targets in the supply, warehouse, and logistics
management sectors that would be interested in a combination of cash and stock
of a public company. Many of these potential targets have been financed by
venture capital and private equity firms over the past 4 to 6 years and are
interested in providing liquidity to their investors."



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We Build Productivity                                          [SI SYSTEMS LOGO]
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      PARAGON TECHNOLOGIES, INC. o 600 Kuebler Road o Easton, PA 18040-9201
                        o 610.252.3205 o Fax 610.252.3102
                                www.ptgamex.com






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About Paragon Technologies

Paragon Technologies is a leader in integrating material handling systems and
creating automated solutions for material flow applications. SI Systems'
Production & Assembly and Order Fulfillment branded technologies and material
handling solutions address unit assembly in manufacturing operations and order
fulfillment applications. One of the top material handling systems suppliers
worldwide, SI Systems leading clients have included the United States Postal
Service, stocktickerBMG, Peterbilt, Honda, stocktickerCVS Pharmacy, Maybelline,
and Walgreens.


About Penn Valley Group

Penn Valley Group (PVG) acting as an "agent for change," works with management
teams and Boards seeking to achieve strategic business enhancement in the areas
of financial performance, corporate development, business strategy, and merger
and acquisitions. PVG provides expertise to companies in their effort to enter a
period of "breakout growth" and profitability. PVG also acts as a sponsor for
leveraged buyouts of mid-market business in tandem with incumbent management
teams. Contact: PersonNameBruce Luehrs, Managing Partner, 610-977-2771,
bruce@pennvalleygroup.com/www.pennvalleygroup.com.
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Cautionary Statement. Certain statements contained herein are not based on
historical fact and are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Securities and Exchange
Commission rules, regulations and releases. Paragon intends that such
forward-looking statements be subject to the safe harbors created hereby. Among
other things, the forward-looking statements regard Paragon's earnings,
liquidity, financial condition, review of strategic alternatives, and other
matters. Words or phrases denoting the anticipated results of future events,
such as "anticipate," "does not anticipate," "should help to," "believe,"
"estimate," "is positioned," "expects," "may," "will," "is expected," "should,"
"continue," and similar expressions that denote uncertainty, are intended to
identify such forward-looking statements. Paragon's actual results, performance,
or achievements could differ materially from the results expressed in, or
implied by, such "forward-looking statements:" (1) as a result of factors over
which Paragon has no control, including the strength of domestic and foreign
economies, sales growth, competition, and certain cost increases; and (2) if the
factors on which Paragon's conclusions are based do not conform to its
expectations. Furthermore, achievement of the objectives of the Company
following the sale of Ermanco is subject to risks associated with business
disruption resulting from the announcement of the sale and other risks outlined
in Paragon's filings with the Securities and Exchange Commission, including its
annual report on Form 10-K for the year ended December 31, 2005 and the most
recent quarterly report on Form 10-Q for the quarter ended June 30, 2006.

     This press release and prior releases are available at www.ptgamex.com.
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