Paragon Technologies Calls on Ocean Power Technologies to Defend its 30 Year Record of Consecutive Losses, Precipitous Decline in Shareholder Value, and Entrenchment Tactics to Insulate Board from Accountability

EASTON, PA / ACCESSWIRE / July 11, 2023 /

Dear Shareholders of OPT:

Paragon Technologies (OTC:PGNT) owns approximately 3.9% of the outstanding shares of Ocean Power Technologies and has become one of the largest, if not the largest, single shareholder in OPT. Paragon is a diversified holding company known for pursuing out of favor, overlooked and misunderstood businesses with opportunities for profitability and sustainability. We are patient investors that believe durable investment returns are realized when businesses, in the hands of able management and under the governance of a strong board of directors, pursue a long-term approach and avoid the pitfalls of short-term focus. The results at Paragon reflect the long-term benefits of this approach to our stakeholders.

We have analyzed OPT's business operations and the significant and uninterrupted losses at OPT since it began operations in 1994. OPT has generated net losses every single year for nearly 30 years. Such a dismal business history at OPT has naturally led to a corresponding destruction of shareholder value.

On May 19, 2023, Paragon sent a letter to the OPT Board outlining our concerns regarding the company's ongoing cash burn, what we believe is the lack of a coherent plan to achieve profitability before the cash is depleted and the resulting destruction of shareholder value that we believe reflects the gross mismanagement and negligence by OPT's Board of Directors.

OPT may reflect the most epic failure of a business we have encountered:

• Since 1994, when OPT commenced operations, OPT has never had a profitable year. The company has generated accumulated losses of nearly $300 million with minimal revenues each year.
• OPT's share price has declined from a split adjusted $1,200 per share to $0.60 cents today.
• OPT has spent decades attempting to commercialize the same products, failed to do so and burned through hundreds of millions of dollars in the process.
• OPT's current market cap is approximately $33 million, a valuation supported solely by the Company's cash balance and effectively placing a zero ($0) enterprise value on the company's business operations.

We believe the current CEO and Board of Directors have grossly neglected and violated their fiduciary obligation to exercise a duty of care and loyalty in managing OPT. Most appalling, the entire Board of Directors including the CEO collectively own less than 0.7% of the Company's shares. Insiders are in no way aligned with shareholders.