EXHIBIT 99.1
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[PARAGON LOGO] NEWS
FOR: PARAGON TECHNOLOGIES, INC.
CONTACTS: Len Yurkovic, President and CEO
610-252-3205
610-252-3102 (Fax)
www.ptgamex.com
PARAGON TECHNOLOGIES, INC.
APPOINTS NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER
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EASTON, PA -- October 14, 2005 -- Paragon Technologies, Inc. (AMEX:PTG), a
leading supplier of "smart" material handling solutions, including systems,
technologies, products and services, announced today that Joel L. Hoffner has
been appointed President and Chief Executive Officer of the Company effective
January 1, 2006. The Company's current President and Chief Executive Officer,
Leonard S. Yurkovic, will continue as the Company's President and Chief
Executive Officer until his retirement on December 31, 2005. Following his
resignation, Mr. Yurkovic will continue to serve as a Director of the Company.
Mr. Hoffner, age 61, previously served as Vice President of Product Management
(June 1992 - June 1995), Vice President of Engineering (May 1987 - January
1988), and Director of Engineering (July 1985 - May 1987) at SI Handling
Systems, Inc., a Paragon predecessor company. He has also served as CEO and
founder of SI/BAKER, INC., a joint venture between the Company and Automated
Prescription Systems, Inc. that provided order fulfillment systems to the mail
order pharmacy market. Mr. Hoffner has been a consultant to SI Handling Systems,
Inc. and Paragon for various marketing and business evaluation assignments
during the last ten years. As previously announced, Mr. Hoffner was appointed as
a director of the Company on September 20, 2005. Currently, Mr. Hoffner provides
consulting services related to the Company's corporate development pursuant to
the terms of a consulting agreement by and between the Company and The QTX Group
dated September 1, 2005. The parties intend to terminate the consulting
agreement with The QTX Group on or prior to the time Mr. Hoffner's appointment
as President and Chief Executive Officer of the Company becomes effective. In
addition, the Company anticipates entering into an employment arrangement with
Mr. Hoffner prior to January 1, 2006.
Most recently, Mr. Hoffner was President of E&E Corporation and is currently
Managing Director of The QTX Group. Both companies provided consultative due
diligence and enterprise evaluation services to investment banking institutions
worldwide, to process and manufacturing industries, and to warehousing and
distribution operations. Mr. Hoffner is a cum laude graduate of Lehigh
University with a B.S. in Electrical Engineering and a native resident of
Bethlehem, PA.
Paragon also announced today the promotion of Mr. William J. Casey to Executive
Vice President of the Company and President of Production & Assembly and Mr.
John F. Lehr to Vice President of the Company and Managing Director of Order
Fulfillment. Both promotions are effective immediately.
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We Build Productivity [SI SYSTEMS LOGO]
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PARAGON TECHNOLOGIES, INC. o 600 Kuebler Road o Easton, PA 18040-9295
o 610.252.3205 o Fax 610.252.3102
www.ptgamex.com
Mr. Casey, age 61, whose career with the Company spans 38 years, rejoined the
Company in December 2003 after a two-year absence. He currently serves as Vice
President of SI Systems Production & Assembly. From July 2001 to December 2003
he held a similar executive position with The Casey Group, an information
technology firm specializing in providing Enterprise Services in IT management,
integration, and outsourcing. Previously (1965-2001), Mr. Casey held a variety
of senior management positions at Paragon including Executive Vice President,
Vice President Sales and Marketing, and Director of Sales. Mr. Casey is a well
known leader in the material handling industry. A member of the Conveyor
Equipment Manufacturers Association (CEMA) for over 24 years, acting as Board
President in 2002-2003, he has served on its Board of Directors since 1997 and
chaired numerous committees.
Mr. Lehr, age 45, joined the Company as the Director of Sales and Marketing of
SI Systems Order Fulfillment in April of 2005. Mr. Lehr has over 22 years of
experience in the material handling systems integration industry with specific
expertise in the design, sale, and implementation of highly automated
distribution centers. He has managed facilities projects in North America, South
America, and Europe across a wide range of wholesale and retail distribution
markets. Over the past five years, Mr. Lehr has focused on the development of
industry specific analytical processes and tools that assist clients in the
resolution of complex distribution problems. These processes have contributed to
the success of over $100 million dollars of automated systems projects. From
2003 to 2005 Mr. Lehr was President of Genesys Systems. He served as Managing
Partner of Novare-Solutions from 2000 to 2003, and from 1999 to 2000 he held
various positions at W&H Systems, a systems integrator, ranging from Project
Manager to Vice President. Mr. Lehr received a Bachelor's Degree in Industrial
Design from the University of Bridgeport.
Len Yurkovic, President and CEO of Paragon Technologies, stated, "The
appointment of Joel Hoffner as President and CEO effective January 1, 2006,
coupled with the promotions of Bill Casey and Jack Lehr to senior executive
positions, puts in place an exceptionally experienced team of executives to
continue to expand and diversify the Company. I am delighted with the Company's
potential driven by these promotions."
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 handling and order fulfillment
applications. One of the top material handling systems suppliers worldwide, SI
Systems leading clients have included the United States Postal Service, General
Motors, BMG, Ford, Peterbilt, Harley-Davidson, and Walgreens.
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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, 2004 and the most
recent quarterly report on Form 10-Q for the quarter ended June 30, 2005.
This press release and prior releases are available at
www.ptgamex.com.