PGN Pgnx Capital Corporation

Paragon Pharmacies Limited (TSX VENTURE:PGN) ("Paragon" or "the Company") today
reported its financial results for the first quarter ended November 30, 2011.


"The first quarter gross profit improved as a result of the continued
redevelopment of the Company's retail programs and more favorable supply
agreements. Management continues to focus on revenue growth opportunities within
all areas of the business and strengthening cost control measures to ensure the
Company remains on track to increase EBITDA in fiscal 2012." said R. Gordon
Gooding, Chief Executive Officer.


Revenue for the three month period was $18.981 million compared to $19.478
million in the same period last year. Comparable store pharmacy revenue was down
3.7% impacted mainly by reductions in generic drug prices due to regulatory
reform implemented in British Columbia. Front store revenue, excluding post
office and other revenue, increased by 3.2% with a continued focus on
strengthening the Company's merchandising and promotional offerings.


Gross profit for the three month period was $7.780 million compared to $7.714
million in the same period last year. Pharmacy margins as a percentage of
revenue increased 1.8% in the first quarter compared to the same period last
year. Front store margins as a percentage of revenue increased 0.7% in the first
quarter compared to the same period last year.


EBITDA was $0.753 million for the three months ended November 30, 2011 compared
to $0.785 million in the same period last year, a decrease of $0.032 million or
4.1%. In addition to the downward pressure on revenue which was offset by
strengthening gross margin, the Company experienced a modest increase in
operating and corporate costs.


The net loss for the first quarter was $0.507 million, compared to $0.765
million in the same period last year, a decrease in the net loss of $0.258
million or 33.7%. This decrease in the net loss is primarily due to a reduction
in depreciation and amortization and net finance costs.


The pharmacy industry continues to face ongoing regulatory change which will
alter the way generic drugs are priced. The Company's assessment of these
changes is more fully described in Management's Discussion & Analysis for the
first quarter ended November 30, 2011 in the section entitled Regulatory Changes
That Impact the Company's Industry.


The Company's unaudited condensed consolidated financial statements and
Management's Discussion and Analysis for the three month period ended November
30, 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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