Paragon : Extends Series Production of Air Quality Sensors for Chinese Manufacturers

• Growing demand in China for the air quality sensors, which have proved their mettle millions of times over
• paragon welcomes further Chinese manufacturers as new clients
• Increasing utilization of production capacity at paragon Automotive Kunshan Co., Ltd., starting 2017

In China, the government is stepping up efforts to prevent the population from being exposed to health risks caused by environmental pollution. The latest draft of the next Five-Year Plan (2016-2020) therefore contains specific targets for considerably reducing air pollution. As a result, the Chinese car industry is now a global driver of the rapid spread of resource-saving technologies. Alongside electromobility, technologies designed to improve air quality play a particularly significant role.

Since the Chinese plant was opened in November 2015, the paragon site in Kunshan, near Shanghai, has been focusing on state-of-the-art air quality management solutions for vehicle interiors to minimize passengers' exposure to harmful substances. The technology used in the paragon air quality sensors is based on the fact that metal oxide sensors respond to harmful gasessuch as nitrogen oxide (NO), nitrogen dioxide (NO2),and carbon monoxide (CO) with a change in resistance. The resistance is then analyzed using an intelligent algorithm. The sensor can then activate the vehicle's air circulation system and close the air vents if the quality of the outside air falls below a certain level. The specially developed software controls the

sensitivity of the sensor according to defined parameters such as temperature, length of journey, and overall environmental pollution.

"We are delighted that more and more Chinese manufacturers are fitting their latest vehicle generations with our air quality sensors," says Klaus Dieter Frers, founder and Chief Executive Officer of paragon AG. "This enables us to play a role in reducing the health risk to the Chinese population in all conceivable traffic scenarios, e.g. traffic jams."

Alongside the globally leading air quality sensor from paragon, Chinese clients will, in the future, also be deploying new and even more comprehensive solutions, such as the innovative CO2sensors and PM2.5 particle sensors for monitoring fine-dust pollution with measurement precision of ±10 μg/m³ from paragon.

"Apart from the popular premium sedan from Changan Automobile, the attractive SUV models from GAC Group and Geely represent ideal areas of application for our high quality standards in mass production," adds Wolfgang Ketter, General Manager of paragon Automotive Kunshan Co., Ltd.

Starting in the 2017 fiscal year, it is anticipated that paragon Automotive Kunshan Co., Ltd. will make a significant contribution to the consolidated revenue of paragon AG.

More information is available at http://www.paragon.ag/en/investors.

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).

paragon AG paragon Automotive Kunshan Co., Ltd.

Artegastraße 1 No. 8 Heng Dai Road, Zhangpu

D-33129 Delbrück Kunshan 215321 (P.R. China) Phone: +49 (0) 52 50 - 97 62-0 Phone: +86 (0) 512 5520 5868

Fax: +49 (0) 52 50 - 97 62-60 Fax: +86 (0) 512 5520 5828

Internet: www.paragon.ag Internet: www.paragon.ag

Email: info@paragon.ag Email: info@paragon.ag

paragon AG

Dr. Kai Holtmann Artegastrasse 1

33129 Delbrück, Germany

Phone: +49 (0) 52 50 - 97 62-140

Fax: +49 (0) 52 50 - 97 62-63

Email: kai.holtmann@paragon.ag