PGN Pgnx Capital Corporation

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


Fiscal 2011 showed steady improvement of store performance through-out the year
as a result of continued redevelopment of our retail programs. Additional focus
was also spent improving compliance controls, and information systems to improve
management's ability to monitor the Company's progress. More favorable supply
agreements and enhanced operational cost controls have improved operating income
and we believe we are now well positioned to increase EBITDA in 2012," said R.
Gordon Gooding, Chief Executive Officer.


Revenue for the year ended August 31, 2011 was $76.688 million compared to
$82.217 million in the prior year. Pharmacy revenue was impacted by reductions
in generic drug prices, primarily due to regulatory reform implemented in
British Columbia, combined with increased generic prescription utilization
rates. Front store revenue continued to be impacted by competitive pressures in
fiscal 2011, although the Company saw strengthening comparable store trends in
the fourth quarter.


Operating income, as defined, was $8.336 million compared to $8.278 million in
the prior year, an increase of $0.058 million or 0.7%. This increase was a
result of continued operating cost containment initiatives and stronger gross
margins as a percentage of revenue for both pharmacy and front store operations,
which was offset by the revenue impacts noted above.


EBITDA, as defined, was $2.861 million for fiscal 2011 compared to $3.559
million in the prior year, a decrease of $0.698 million or 19.6%. In addition to
the downward pressure on revenue which was offset by strengthening gross margin,
the Company incurred increased corporate costs.


The net loss for the fiscal year ending August 31, 2011 was $3.238 million,
compared to $2.594 million in the prior year. This increased net loss of 0.644
million or 24.8% is primarily due to the reasons noted in EBITDA above along
with an increase in amortization.


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, 2011 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, 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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