To the Shareholders of Paragon Technologies:

EASTON, PA / ACCESS Newswire / August 8, 2025 / It has been a busy few weeks since the conclusion of the annual meeting as we are hard at work restoring Paragon Technologies, Inc. (OTCID:PGNT) ('Paragon' or the 'Company') and I realize many of you have lots of questions. The purpose of this letter is to provide a brief overview of where our Company sits today given the events that have transpired over the past months.

Thanks to an overwhelming show of support, our slate was elected with a supermajority of the vote - a strong mandate for change, and for stewardship that reflects the values of ownership, discipline, and integrity.

Now that the campaign is behind us, Paragon is back again focused on doing the simple things that made the Company an enormous success for over a decade: delivering value to our clients, operating efficiently with a disciplined approach to expenditure, avoiding waste and bureaucracy, behaving with candor, being faithful stewards, and acting opportunistically.

For the past nine months, former directors Samuel Weiser, Tim Eriksen, Howard Brownstein and David Lontini, a group of directors who had no real economic interest in Paragon, were focused solely on perpetuating themselves in control and wasting millions of dollars of Paragon's capital to achieve that goal. We have now learned what we suspected all along: mindless tactics led to mindless waste. Based on an internal review, we have learned the following and feel our shareholders should be aware of these findings so shareholders are clearly aware of the substantial financial impact they will have on our upcoming financial results:

• The quick sale of real estate assets without proper board approval on hastily negotiated terms that likely left $100,000 - $200,000 on the table.

• Mismanagement of SI Systems, leading to a significant increase in operating costs without achieving any meaningful revenue gains.

Prior to my removal as CEO, all three of Paragon's subsidiaries were profitable and Paragon's assets included nearly $5 million in cash and marketable securities, net of expenses associated with our previous corporate campaign. Today that figure sits just above $1 million. Some of the wasted resources may be recouped, but the timing and likelihood of any recoupment is uncertain at this time.

Certainly, these expenditures will have a significant financial impact on Paragon and its financial results for the remainder of the year as we clear out the debris left behind. However, this episode also reveals Paragon's underlying strength and resiliency - resiliency that was painstakingly built over years of stewardship by management that was economically aligned with stockholders. We will do it again.

Protecting the downside is the core of our philosophy at Paragon. By prioritizing protecting stockholder capital, we are prioritizing our commitment to enhancing all stakeholder value. Our customers and other partners can rest assured Paragon will continue to be committed to providing them with value in our products and we will serve you with the utmost reliability, quality, and service.

And that brings us to the future-where our energy is now fully focused. Our mood and outlook are positive. The right leaders are back at the Company, and we have quickly acted and are seeing some results. SEDC just posted its highest monthly sales of the year in July, exceeding $13 million. We are already hard at work executing on the plan we laid out to shareholders: re-engaging with our partners, setting the initial steps for the expansion of our distribution and automation businesses and cutting unnecessary costs. We are focusing on long-term value while also prioritizing the need to minimize future financial loss in the short term.

To the vast majority of shareholders who stood with us through this process, we thank you. We can never promise perfection, but you can once again rely on us to communicate candidly, conduct our business affairs with prudence and integrity, and make decisions through the lens of owners - a recipe that has produced a decade of tremendous achievement for Paragon. At Paragon, our vision has always been to build something that lasts - and nothing will shake our confidence in doing just that. We have some rebuilding to do and that will take time, but the Company again has management 100% economically aligned with stockholders. We will act boldly and opportunistically, but most of all carefully.

The 2025 annual letter to shareholders is forthcoming (that streak will not be broken!) and I look forward to providing a more detailed overview of Paragon towards the end of the third quarter.

Sincerely

Sham Gad
CEO
Paragon Technologies, Inc.

CONTACT:
ir@pgntgroup.com

SOURCE: Paragon Technologies Inc.