Paragon Pharmacies Limited
TSX VENTURE : PGN

Paragon Pharmacies Limited

January 29, 2008 19:09 ET

Paragon Pharmacies Announces First Quarter Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - Paragon Pharmacies Limited ("Paragon" or the "Corporation") (TSX VENTURE:PGN) today reported its financial results for the three month period ended November 30, 2007.

Revenue was $17.677 million in the first quarter of fiscal 2008, an increase of 11.1% or $1.764 million over the same period last year. The increase was a result of a 3.9% growth in same store revenue, and new revenue from the acquisition of two independent pharmacies completed in March 2007 and November 2007.

Operating income in the first quarter was $1.259 million, a decrease of $0.062 million or 4.7% over the same period last year. 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 interim consolidated financial statements.

The net loss in the first quarter was $1.893 million compared to a net loss of $0.086 million for the same period last year. Of the $1.893 million loss, $1.622 million is attributed to financing costs related to the convertible debenture issued in May 2007 and $0.035 million to stock based compensation costs.

Commenting on the first quarter, Craig Cameron, President and CEO stated, "2008 is shaping up to be a very busy year for Paragon. During the quarter we acquired an independent retail pharmacy in Manitoba and then subsequent to the end of the quarter, we acquired two central fill pharmacies in British Columbia and one in Manitoba. As we continue the implementation of our business plan the accretive results of these acquisitions will be reflected in future reporting periods."

The Company's interim unaudited consolidated financial statements, Management's Discussion and Analysis, and President's Message for the three month period ended November 30, 2007 are available in the Investor Relations section of the Company's website at www.paragonpharmacies.com, or under the Company's profile on SEDAR at www.sedar.com.

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 19.5 retail pharmacies, 3 central fill 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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