PARAGON CARE LIMITED — M&A Activity 2011

Jun 30, 2011

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1[st] July 2011

Australian Securities Exchange Company Announcements Office

PARAGON CARE COMPLETES ACQUISITION OF GM MEDICAL PTY LTD

The Directors of Paragon Care Limited (ASX: PGC) are pleased to announce that the acquisition of GM Medical Pty Ltd was settled earlier today. The company announced on the 20[th] April 2011 that it had entered into an agreement to acquire the business of GM Medical Pty Ltd for a total consideration of $1.85 million.

Founded in 2002, the GM Medical business specialises in the supply of and distribution of quality healthcare products for the acute and aged care market throughout Australia and New Zealand (www.gmmedical.com.au). GM Medical has developed an exceptional reputation within the healthcare industry for its unique ability to create innovative healthcare concepts as well as manufacture precision designed stainless steel and other medical related products.

The acquisition of GM Medical boosts the Company’s overall annualised sales to about $20 million and positions the Company as a leading distributor of durable goods to the health and aged care sectors.

Mark Simari, CEO of Paragon Care said

“The Company sees the strategic acquisition of GM Medical as facilitating the need to develop and enhance our range of healthcare products. This will provide Paragon Care the opportunity to design and manufacture new and innovative product lines to meet the growing demands for quality products from the health and aged care sector”

Mark Simari

About Paragon Care :

Paragon Care Limited (ASX: PGC) has a vision to be one of Australia’s leading providers of integrated services to Australia’s health and aged care markets. These are high growth markets driven by the ageing of the population, continuously rising consumer expectations and increasing government spending.

Paragon Care has six operating businesses: Axishealth, Iona Medical, Volker Australia, and Rapini supply durable medical equipment to hospitals, medical centres and aged care facilities; Lifetime Planning provides financial planning services to the elderly; and Tender Living Care provides location services for aged care accommodation.

For further information please contact Mark Simari, Managing Director (1300 369 559)

PARAGON CARE LIMITED

ABN 76 064 551 426 Unit 1, 56 Norcal Road, Nunawading, Victoria, Australia 3131 Telephone: 1300 369 559 Facsimile: 61 3 8833 7890

www.paragoncare.com.au