Paragon Pharmacies Limited

Paragon Pharmacies Limited

January 17, 2008 18:52 ET

Paragon Announces Acquisition of Alentex Pharmacy

KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Paragon Pharmacies Limited ("Paragon" or the "Corporation") (TSX VENTURE:PGN) announced today that its wholly owned subsidiary has, pursuant to a purchase and sale agreement, acquired certain of the assets of 4638418 Manitoba Ltd. doing business as Alentex Pharmacy ("Alentex"). Alentex is located in Winnipeg, Manitoba and carries on the business of providing pharmacy services to assisted living and long-term care residents in the Winnipeg and surrounding areas.

The assets consist of the equipment, inventory, material contracts and goodwill required to carry on the current business of Alentex. Doug Penner, a founding principal of Alentex, will remain on as Director of Institutional Pharmacy, Manitoba for Paragon. The total purchase price for the Alentex assets was $7.5 million payable in cash, subject to adjustments.

Craig Cameron, President and Chief Executive Officer of Paragon commented, "Paragon is pleased to announce its second acquisition in the central fill pharmacy sector, further demonstrating our commitment to an accretive growth strategy. We also look forward to having Mr. Penner join the Paragon team to assist us in growing our long term care business with his extensive experience in this sector".

Paragon is headquartered in Kelowna, British Columbia and currently employs over 500 full and part time staff in its stores and offices. The Corporation owns and operates 18.5 retail pharmacies, 3 central fill pharmacies and 2 home healthcare stores in British Columbia, Alberta and Manitoba.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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