PGN Pgnx Capital Corporation

Paragon Pharmacies Limited ("Paragon" or "the Company") (TSX VENTURE:PGN) today
reported its financial results for the second quarter ended February 28, 2010.


Revenue for the three-month period was $20.785 million compared to $22.204
million in the same period last year. The majority of the 6.4% decrease was a
result of front store revenue being influenced by challenging economic
conditions and increased competitive pressure from larger retailers in the
industry. This decline also included a drop in pharmacy revenue which was
impacted by reductions to dispensing fees along with the continuing shift to
lower priced generic drugs from brand products. 


Operating income, as defined, was $2.008 million compared to $2.084 million in
the same period last year, a decrease of 3.6%. This decrease is a result of
declining sales, offset by increased margin percentages and cost containment
initiatives that were implemented in fiscal 2009 which reduced labour and
product distribution expense.


EBITDA, as defined, was $0.976 million in the second quarter compared to $1.110
million in the same period last year, a decrease of $0.134 million or 12.1%. The
decrease in EBITDA was primarily the result of the reduction in pharmacy and
front store revenue.


The net loss for the second quarter was $0.464 million compared to a net loss of
$0.401 million in the same period last year, a decrease of 15.7%. 


R. Gordon Gooding, Chief Executive Officer, said, "Since being appointed CEO of
Paragon effective April 1, 2010, I have taken the opportunity to visit the
stores and meet with many of the staff throughout the Company. My firm belief is
that, while the quarter results are less than anticipated, Paragon has the right
combination of professional, capable and caring staff as well as a strong
capital position and the aggressiveness necessary to profitably grow its
business. All of these factors will enable the Company to move ahead with its
objectives and I look forward to being a part of this dynamic organization."


During the three month period ended February 28, 2010, Paragon opened a new
medical clinic adjacent to its Airdrie, Alberta store, finalized its new
point-of-sale vendor and began the implementation phase of the project, and
continued the process of expanding and enhancing its long term care operations
through the use of technology and efficient work flow improvements. The Company
also continued with its unified pharmacy platform conversion within its Alberta
and Manitoba locations. 


The Company is closely monitoring regulatory changes that may impact the
Company's industry including the latest developments in Ontario's overhaul of
its public drug program as more fully outlined in the Company's Management's
Discussion & Analysis dated April 22, 2010. At the same time, the Company
continues to seek out opportunities to explore additional pharmacy-related
revenue streams to offset the inevitable decline in financial support from
generic drug suppliers.


The Company has secured a new three year credit facility with a $5.0 million
operating line, $5.0 million term loan and $15.0 million acquisition facility
effective April 6, 2010. These replacement facilities will provide financing to
fund future acquisitions on reasonable terms and conditions.


The Company commenced a Normal Course Issuer Bid on October 9, 2009. To date,
the Company has purchased 2.844 million shares for cash consideration of $0.953
million.


The Company's unaudited consolidated financial statements and Management's
Discussion and Analysis for the three month period ended February 28, 2010 are
available at the Investor Relations section of Paragon's website at
www.paragonpharmacies.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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