DGAP-Ad hoc: Paragon AG

DGAP-Adhoc: Paragon AG Successfully Concludes Capital Increase: Placement of 411,478 New Shares at EUR 32.50 Each

paragon AG / Key word(s): Capital Increase

05.10.2016 10:32

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

paragon AG Successfully Concludes Capital Increase: Placement of 411,478 New Shares at EUR 32.50 Each

Delbrück, Germany October5, 2016 - Upon completion of the accelerated book- building process for the cash capital increase resolved on October 4, 2016, the Management Board of paragon AG (ISIN DE0005558696), with the approval of the Supervisory Board, has today set the placement price at EUR 32.50 per share. The discount to the closing price of the previous day at the Frankfurt stock exchange (XETRA) is 3.85 percent. The offering was oversubscribed three and a half times. In total, 411.478 new shares were placed with qualified investors and with the majority shareholder and founder of the company, Klaus Dieter Frers, who sits on the Management Board.

The capital increase means that the company will receive gross issue proceeds of EUR 13.37 million, which, following the deduction of issue costs, are to be used to continue the company's course of growth, especially in the Electromobility division, and to maintain a solid balance sheet structure in the long term.

The transaction was supported by Hauck & Aufhaüser as sole global coordinator and sole bookrunner.

Disclaimer:

THIS PUBLICATION IS A MANDATORY NOTIFICATION ACCORDING TO ARTICLE 17 MAR. IT IS FOR INFORMATIONAL PURPOSES ONLY AND CONSTITUTES NEITHER AN OFFER TO SELL NOR AN INVITATION TO TREAT NOR AN INVITATION TO SUBSCRIBE TO SHARES OR OTHER SECURITIES OF PARAGON AG. A PUBLIC OFFERING OF SECURITIES IS NOT TAKING PLACE AND IS NOT INTENDED.

THIS PUBLICATION AND THE INFORMATION CONTAINED HEREIN ARE NOT INTENDED FOR DIRECT OR INDIRECT DISCLOSURE OR PUBLICATION IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, OR JAPAN. THE PARAGON AG SECURITIES DESCRIBED HEREIN ARE NOT AND WILL NOT BE REGISTERED PURSUANT TO THE APPLICABLE VERSION OF THE U.S. SECURITIES ACT OF 1933 ("SECURITIES ACT") OR THE LAWS OF A U.S. STATE AND MAY ONLY BE SOLD OR OFFERED FOR SALE IN THE UNITED STATES OF AMERICA ON THE BASIS OF AN EXEMPTION FROM THE REGISTRATION REQUIREMENT SET OUT IN THE SECURITIES ACT OR THE LAWS OF A U.S. STATE OR IN THE EVENT OF SUCH REGULATIONS BEING NON-APPLICABLE. THERE WILL BE NO PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES OF AMERICA.

Further information is available at www.paragon.ag/en/investors.

Company Profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and sells innovative automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the business segments of Sensors, Acoustics, Cockpit, E-mobility and Body Kinematics. In addition to its headquarters in Delbrück (North Rhine- Westphalia), paragon AG and its subsidiaries have locations in Suhl (Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Württemberg), and Bexbach (Saarland), as well as in Kunshan (China) and Austin (Texas, USA).

Financial Press Contact & Investor Relations

paragon AG Dr. Kai Holtmann Artegastraße 1 D-33129 Delbrück Phone: +49 (0) 52 50 - 97 62-140 Fax: +49 (0) 52 50 - 97 62-63 E-Mail: kai.holtmann@paragon.ag

05.10.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 33129 Delbrück Germany Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 E-mail: investor@paragon.ag Internet: www.paragon.ag ISIN: DE0005558696, DE000A1TND93 WKN: 555869, A1TND9 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------