Paragon Pharmacies Limited

Paragon Pharmacies Limited

April 10, 2007 11:26 ET

Paragon Pharmacies Named as Defendant in Legal Action

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - April 10, 2007) - Paragon Pharmacies Limited (TSX VENTURE:PGN) ("Paragon" or the "Corporation") announced that the Corporation has been named as a defendant, together with Ben Holden, Paragon's Vice President, Corporate Development, in a statement of claim filed by Katz Group Canada Inc., Drug Trading Company Ltd., Pharmx Rexall Drug Stores Ltd. and Katz Group Canada Ltd., as plaintiffs. Management of the Corporation believes that the allegations raised in the statement of claim are without merit and the Corporation intends to vigorously defend the action to the full extent permitted under law.

Paragon is headquartered in Kelowna, British Columbia and currently employs over 355 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 British Columbia, Alberta and Manitoba. Paragon also holds a minority ownership position in Catalyst Healthcare Ltd.

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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