PGN Pgnx Capital Corporation

Paragon Pharmacies Limited ("Paragon" or "the Company") (TSX VENTURE:PGN) today
reported its financial results for the third quarter ended May 31, 2010.


Revenue for the three-month period was $20.947 million compared to $21.615
million in the same period last year. This 3.1% decrease was a result of a 0.3%
decline in comparable store pharmacy revenue and a 7.3% decline in comparable
front store revenue. Pharmacy revenue was impacted by regulatory changes to
pricing structures of generic drugs in Alberta, along with the increased
availability of lower priced generic drugs in the marketplace.


"The current challenging regulatory, competitive and economic environment has
impacted the Company's third quarter results", said R. Gordon Gooding, appointed
Chief Executive Officer effective April 1, 2010. "However, Paragon's capital
position, together with the recently secured three-year credit facility will
allow the Company to move forward with its plan to improve existing stores, and
continue to search for new business development opportunities throughout Western
Canada. The Company has also strengthened its senior management team who,
together with the managers and employees in both the retail and pharmacy
segments of our stores, are working on a significant number of initiatives to
improve store operations."


Operating income, as defined, was $2.151 million compared to $2.685 million in
the same period last year, a decrease of 19.9%.


EBITDA, as defined, was $0.890 million in the third quarter compared to $1.529
million in the same period last year, a decrease of $0.639 million or 41.8%. The
decrease in operating income and EBITDA in the third quarter was a result of the
reduction in front store and pharmacy revenue and an increase in operating
expenses of $0.274 million over the same period in the prior year.


The net loss for the third quarter was $0.584 million compared to a net income
of $0.171 million in the same period last year, an increase in net loss of
$0.755 million. This change is primarily due to a decline in revenue over the
same period the previous year.


The pharmacy industry continues to face ongoing regulatory change which will
alter the way generic drugs are priced and pharmacy allowances are charged. The
Company's assessment of these changes is more fully described in Management's
Discussion & Analysis for the three and nine month periods ended May 31, 2010 in
the section entitled Regulatory Changes That Impact the Company's Industry.


The Company's unaudited consolidated financial statements and Management's
Discussion and Analysis for the three and nine month periods ended May 31, 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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