PGN Pgnx Capital Corporation

Paragon Pharmacies Limited ("Paragon" or "the Company") (TSX VENTURE:PGN) today
reported its financial results for the first quarter ended November 30, 2009.


Revenue for the three-month period was $20.926 million compared to $21.783
million in the same period last year. This decrease of 3.9% was a result of the
decline in comparable front store revenue. As well, pharmacy revenue, which
increased slightly over the same period last year, was impacted by reductions in
changes to dispensing fees along with the continuing shift to lower priced
generic drugs from brand products. 


Operating income, as defined, was $2.012 million compared to $1.479 million in
the same period last year, an increase of 36.0%. This increase was a result of
cost containment initiatives that were implemented during fiscal 2009 which
resulted in reduced labour and product distribution expenses.


EBITDA, as defined, was $1.061 million in the first quarter compared to $.303
million in the same period last year, an increase of $0.758 million or 250.2%.
The increase in EBITDA was primarily a result of the reduction in operating
labour and distribution expenses as well as a reduction in corporate costs over
the same period last year.


The net loss for the first quarter was $0.483 million compared to a net loss of
$6.558 million in the same period last year. This improvement relates primarily
to an increase in operating income together with a reduction in financing costs
relating to the convertible debenture. 


During the three month period ended November 30, 2009, Paragon continued its
plan to strengthen and expand the Company's operations. In Kelowna, British
Columbia, this was evidenced by the opening of a new 1,000 sq. ft. clinical
format pharmacy as well as completing renovations and relocating another of its
pharmacies to a new 9,000 sq. ft. site. In Alberta, Paragon began the
development of a medical clinic adjacent to its Airdrie, Alberta store,
purchased a prescription file of an independent pharmacy in Calgary and opened a
new Canada Post outlet in another of its Calgary locations.


Denis Taillieu, Chief Executive Officer, said, "The Company continues to make
significant strides in improving its overall operational results. Process
automation, enhanced technological capabilities, improved reporting systems and
an experienced, results-driven management team will continue to move the Company
forward. But most importantly, Paragon understands and meets the needs of its
many customers with superior service, knowledge, professionalism, care and
compassion as it reaches its goal of being the premier mid-market
community-based pharmacy."


Martin Weinberg, Chairman of the Board of Directors, noted that the Company has
made considerable progress over the past year and now needs to focus on
strengthening its brand positioning, merchandising and marketing to build on
what has been recently accomplished. In this regard, the Board of Directors
continues to seek out a CEO with strong retail expertise to lead the Company
through its next stage of development.


The Company commenced a Normal Course Issuer Bid on October 9, 2009. To date,
the Company has purchased 1.799 million shares for cash consideration of $0.572
million.


The Company's unaudited consolidated financial statements and Management's
Discussion and Analysis for the three month period ended November 30, 2009 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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