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paragon AG: paragon Group with jump in revenue and earnings in first half of 2015 - Seite 2

level while the Cockpit business division grew by 12%. Rapid progress is
also being made with the integration of SphereDesign GmbH - the company
acquired at the beginning of the year - where notable synergies have
already been realised. With capital expenditure of EUR 13.6 million,
paragon Group maintained a high level of investment in the first half of
the year (previous year: EUR 4.5 million). In addition to the SphereDesign
GmbH acquisition, investments related above all to the construction of the
production building in the US as well as to replacement and new investments
in machinery. The Managing Board expects investment activities in 2016 to
return to the level seen prior to 2015. The period of increased investment
in the new business divisions is now coming to an end and has already
started to pay off.

The positive business performance has also left its mark on the company's
earnings development. EBIT thus increased year-on-year by 155.7% from EUR
1.5 million to EUR 3.8 million and the EBIT margin more than doubled from
4.0% to 8.6%. Consolidated net income calculated in line with IFRS rose to
EUR 1.9 million as of June 30, 2015 - five times the previous year's figure
(EUR 0.4 million). Correspondingly, earnings per share increased to EUR
0.46 (previous year: EUR 0.09).

Seizing growth potential

In the further course of the year paragon will be exploiting the
significant growth potential resulting - among other factors - from its
diversification and internationalization strategy. paragon's two
subsidiaries Voltabox Deutschland GmbH and Voltabox of Texas, Inc. not only
celebrated the opening of the newly constructed production building in the
US but also acquired their first large-scale serial order from a well-known
German carmaker for starter batteries for conventionally powered vehicles
(order volume: approx. EUR 72 million) and thus accessed an additional
business field. This is further evidence of the enormous range of possible
uses and the strong growth potential harboured by paragon's Electromobility
business division.

The company is also pressing further ahead with its plans for the Chinese
market. The sales subsidiary operating in Shanghai since 2012 is currently
being expanded into a production company and is due to move to a new
building offering ideal conditions - located in Kunshan not far from
Shanghai - in September. In the future, the new plant will manufacture air
quality sensors, air quality improvement systems, and stepper motors for
display instruments. It is planned to expand the product range in a second
stage.

Not only that, at the IAA fair due to be held in Frankfurt in September