1 EXHIBIT 12 PARAGON CORPORATE HOLDINGS INC. COMPUTATION of RATIO of EARNINGS to FIXED CHARGES (In thousands, except for ratios) THE COMPANY A.B.DICK ---------------------------------------------------------- --------------------- Period from Period from (Predecessor Company) Year Ended Year Ended Jan. 17, 1997 April 1, 1996 Fiscal Year Dec. 31, Dec. 31, through through Ended March 31, 1999 1998 Dec. 31, 1997 Jan. 16, 1997 1996 ---------- ---------- ------------- ------------- --------------------- Computation of earnings: Income (loss) before foreign income taxes and extraordinary item $(15,391) $ 142 $ 9,329 $(455) $(5,463) Amortization of deferred financing costs 526 365 214 -- -- Interest expense 12,383 10,946 2,384 205 162 Portion of rent expense representative of an interest factor 1,352 1,530 742 765 728 -------- ------- ------- ----- ------- Earnings $ (1,130) $12,983 $12,669 $ 515 $(4,573) ======== ======= ======= ===== ======= Computation of Fixed Charges: Amortization of deferred financing costs $ 526 $ 365 $ 214 $ -- $ -- Interest expense 12,383 10,946 2,384 205 162 Portion of rent expense representative of an interest factor 1,352 1,530 742 765 728 -------- ------- ------- ----- ------- Fixed Charges $ 14,261 $12,841 $ 3,340 $ 970 $ 890 ======== ======= ======= ===== ======= Ratio of Earnings to Fixed Charges (1) 1.01 3.79 (1) (1) ======== ======= ======= ===== ======= (1) Earnings were inadequate to cover fixed charges 45