NewSpring Capital Leads Investment in Paragon Bioservices

NewSpring Healthcare

RADNOR, PA - October 28, 2014 - NewSpring Capital, a family of private equity funds providing growth and expansion capital, announced today that NewSpring Health Capital, the dedicated healthcare fund of NewSpring Capital, made a $6.0 million investment in Paragon Bioservices, Inc. ("Paragon") as part of a syndicate that included Management. Paragon will use the proceeds to restructure the Company's balance sheet and execute growth initiatives.

Founded in Baltimore, MD by Dr. Marco Chacón, Paragon has partnered with clients for over 20 years to ensure efficient and effective process development and scale up production of biologics and vaccines for research and clinical trial purposes. Paragon has specialized expertise in virology and manufacturing of experimental vaccines for infectious diseases. Paragon also offers preclinical target validation services.

Paragon has a commitment to exceptional quality, scientific excellence and superior customer service. These commitments lead Paragon to focus on the development and manufacturing of biologics and vaccines, which position the Company to capitalize on industry trends such as an all-encompassing "Programmatic Outsourcing." As a provider of contract research and manufacturing services for clinical trial drugs, Paragon is both Good Laboratory Practices and Good Manufacturing Practices compliant.

"We are excited to partner with Management for this investment in Paragon," said Dr. Kapila Ratnam, Principal at NewSpring Capital and new Paragon Board Member. "The company holds a strong position in the CRO/CMO market-particularly in key vaccines, technology and biologics, as well as future growth opportunities in antimicrobial strategies and food safety. We look forward to help them expand and grow."

"Paragon is proud to take this important step with NewSpring Capital in establishing a foundation for our future and ensuring long-term stability for our customers and employees," said Dr. Marco Chacón, CEO of Paragon. "We were looking to find true partners in helping to support our growth and scale and look forward to working with them well into the future."