PGN Pgnx Capital Corporation

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


Revenue for the year was $82.918 million compared to $86.134 million in the same
period last year. This 3.7% decrease was mainly the result of a decline in
comparable store pharmacy and front store revenue. Front store revenue declined
due to the divesture of the home healthcare business late in fiscal 2009 and
continued competitive pressure. Pharmacy revenue growth was impacted by the
increased availability of lower priced generic drugs in the market. 


"While fiscal 2010 saw a decline in overall revenue, the Company has undertaken
a number of initiatives which will allow Paragon to focus on growth of revenues
in existing stores, growth in our asset base through acquisitions and greenfield
opportunities, and growth through continued investment in our long term care
operations," said R. Gordon Gooding, Chief Executive Officer. He continued by
stating, "Key to Paragon's growth is monitoring the effect of regulatory changes
on the Company's business model, while focusing on the ongoing recruitment,
retention and training of professional, customer-focused store and pharmacy
managers and staff who will continue to ensure that our customers' health and
wellness needs and expectations are not only being met, but exceeded." 


Operating income, as defined, was $8.278 million compared to $8.404 million in
the same period last year, a decrease of $0.126 million or 1.5%. 


EBITDA, as defined, was $3.559 million for fiscal 2010 compared to $3.907
million in the same period last year, a decrease of $0.348 million or 8.9%. The
decrease in EBITDA was a result of the reduction in front store revenue and an
increase in corporate expenses offset by a reduction in operating expenses over
the same period in the prior year.


The net loss for the fiscal year ending August 31, 2010 was $2.594 million,
compared to a net loss of $7.257 million in the same period last year. This
decreased net loss of 64.3% ($4.663 million) is primarily due to a reduction in
financing costs relating to the convertible debenture.


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
fiscal year ended August 31, 2010 in the section entitled Regulatory Changes
That Impact the Company's Industry. 


The Company's audited consolidated financial statements and Management's
Discussion and Analysis for the fiscal year ended August 31, 2010 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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