PGN Pgnx Capital Corporation

Paragon Pharmacies Limited (TSX VENTURE:PGN) ("Paragon" or "the Company") today
reported its financial results for the third quarter ended May 31, 2011.


R. Gordon Gooding, Chief Executive Officer, said "While the third quarter did
not see anticipated results, Paragon continues to move forward with positive
initiatives that were introduced in the previous quarters. Construction of a
medical and aesthetics clinic adjacent to one of our Calgary locations, which is
comprised of six doctors, was completed. The development of a health and
wellness focused offering, including health and wellness seminars, is nearing
finalization. These, together with potential acquisition targets, a strong focus
on improving performance and enhanced in-store execution continue to build
customer loyalty and offer the foundation for future growth."


Revenue for the three-month period was $19.096 million compared to $21.025
million in the same period last year. This 9.2% decrease was the result of a
decline in comparable front store and pharmacy revenue. Pharmacy revenue was
impacted by reductions in generic prescription reimbursement rates, primarily
due to regulatory reform implemented in British Columbia, combined with
increased generic prescription utilization rates.


Operating income, as defined, was $1.631 million in the third quarter compared
to $2.151 million in the same period last year, a 24.2% decrease. This decrease
is a result of a decline in contribution from lower sales offset by cost
containment initiatives.


EBITDA, as defined, was $0.438 million in the third quarter compared to $0.890
million in the same period last year, a decrease of $0.452 million or 50.8%. The
decrease in EBITDA was primarily the result of decreased revenue and the
resulting decline in gross margin. 


The net loss for the third quarter was $1.148 million compared to a net loss of
$0.584 million in the same period last year, an increase in net loss of $0.564
million or 96.6%. This change is primarily due to the reasons noted in EBITDA
above along with an increase in amortization. 


The Company's unaudited consolidated financial statements and Management's
Discussion and Analysis for the three and nine month periods ended May 31, 2011
are available at the Investor Relations section of Paragon's website at
www.helloparagon.com or under the Company's profile on SEDAR at www.sedar.com.


Paragon Pharmacies Limited is building a pharmacy with our customers in mind.
Headquartered in Kelowna, BC and employing over 400 staff, Paragon currently
owns and operates 19 retail pharmacies and three central fill pharmacies
throughout British Columbia, Alberta and Manitoba. Paragon is a leading
mid-market pharmacy, providing premier pharmacy services in a friendly,
community-focused environment.


FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements regarding, among other
things, the Company's beliefs, plans, objectives, strategies, estimates,
intentions and expectations, including as they relate to its operating and
financial results, capital expenditures and the ability to execute on its
operating, investing and financing strategies. Consequently, actual results and
events may differ materially from those included in, contemplated or implied by
such forward looking statements for a variety of reasons. Forward-looking
statements are subject to inherent risks and uncertainties including, but not
limited to, market and general economic conditions, certain property and
casualty risks, the ability to attract and retain pharmacists, the availability
and terms of financing, changes in the Company's relationship with its key
suppliers, competitive factors, changes in regulatory environments affecting the
Company's business, and the accuracy in management's assumptions (see "RISKS AND
RISK MANAGEMENT" as noted in the Company's Management's Discussion & Analysis
posted on SEDAR at www.sedar.com). This list is not exhaustive of the factors
that may affect any of the Company's forward-looking statements. Investors and
others should carefully consider these and other factors and not place undue
reliance on these forward-looking statements. In addition, these forward-looking
statements relate to the date on which they were made and the Company disclaims
and has no intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.

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