Paragon Pharmacies Limited

Paragon Pharmacies Limited

December 14, 2007 14:04 ET

Paragon Pharmacies Announces 12 Month Operating Income of $4.787 Million-an Increase of 148%

KELOWNA, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2007) - Paragon Pharmacies Limited ("Paragon" or the "Corporation") (TSX VENTURE:PGN) today reported its financial results for the fiscal year ended August 31, 2007.

Revenue was $66.146 million in 2007, an increase of 75.1% or $28.369 million over 2006. The increase was a result of a 6.4% growth in same store revenue, a full year of revenue from the Super Drug Mart stores acquired in April 2006 and the acquisition of an independent pharmacy in March 2007.

Operating income was $4.787 million in 2007, an increase of $2.857 million or 148.0% over 2006. Operating income is defined as income generated from store and pharmacy operations before corporate expenses, amortization, interest expense, stock-based compensation, and other items as defined in the Company's consolidated financial statements.

The net loss for the year was $3.575 million compared to a net loss of $1.622 million in 2006. Of the $3.575 million loss, $2.342 million is attributed to financing costs related to the convertible debenture issued in May 2007 and public company and stock based compensation costs of $0.465 million.

Commenting on the year, Craig Cameron, President and CEO stated, "2007 was a very busy year for Paragon. During the year we went public on the TSX Venture Exchange, closed $27 million in financing to provide funds for acquisitions and growth initiatives, launched a new retail brand - Paragon Community Pharmacy, strengthened our corporate infrastructure, and initiated significant corporate development and acquisition activities. Subsequent to year-end we acquired a retail pharmacy and have entered into a purchase agreement for two central fill pharmacies thus further demonstrating our commitment to our business plan of growth through accretive acquisitions. The accretive results of these acquisitions will be reflected in future reporting periods."

The Company's audited consolidated financial statements and Management's Discussion and Analysis for the year ended August 31, 2007 are available in the Investor Relations section of the Company's website at, or under the Company's profile on SEDAR at

Paragon is headquartered in Kelowna, British Columbia and currently employs over 400 full and part time staff in its stores and offices. The Corporation owns and operates 18.5 retail pharmacies and 2 home healthcare stores in BC, Alberta, and Manitoba.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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