Gad Capital Initiates Proxy Contest for Paragon Technologies

ATLANTA--(BUSINESS WIRE)--Gad Capital, a value focused investment fund and beneficial owner of 6.5% of the common stock of Paragon Technologies, Inc. (Pink Sheets: PGNT), today announced it has launched a proxy contest to elect a new Board of Directors at Paragon's December 15, 2010 annual meeting.

“Paragon is in dire need of a management change”

Gad Capital has nominated the following candidates:

Sham Gad: He is the founder and managing partner of Gad Capital Management and the author of the internationally published book, "The Business of Value Investing."

Jack H. Jacobs: He is a principal of The Fitzroy Group, Ltd., a real estate development firm, and former managing director of Bankers Trust and founder of AutoFinance Group, Inc. He is an NBC military analyst and holds the McDermott Chair of Politics at West Point. He was among the most highly decorated soldiers in the Vietnam War, earning three Bronze Stars, two Silver Stars and the Medal of Honor. He is on the board of Xedar Corporation, Premier Exhibitions, Inc., the Medal of Honor Foundation, and the USO of New York.

Samuel S. Weiser: He is a member and COO of Sellers Capital LLC, an investment management firm. He was a managing director responsible for the Hedge Fund Consulting Group at Citigroup and is a former partner of Ernst and Young. He is a licensed CPA and a director of Premier Exhibitions, Inc.

Michael R. Levin: He is the CFO of AbaStar MDx, a medical diagnostics company, and former finance and risk management executive with several U.S. public companies. He owns and operates The Activist Investor, an activist investor advisory firm.

"Paragon is in dire need of a management change," says Sham Gad. “Since 2003, the company’s share price has declined by over 90%, sales have fallen off a cliff, and book value continues to deteriorate. For the past several years, management has stated its intent to create shareholder value. Yet during that time, the company's shares have declined precipitously while the company has been depleting its cash balance. Paragon no longer has the luxury of time."

Mr. Gad further states, "We have assembled a slate of directors that is eminently qualified to execute our strategy for long-term value creation."

Shareholders of Paragon interested in obtaining additional information should contact Gad Capital at 706-340-4817 or [e-mail]. If you own Paragon shares, you are urged to contact Gad Capital.