PONTE VEDRA BEACH, Fla., May 19, 2006 (PRIMEZONE) -- Paragon Financial Corporation (OTCBB:PGNF) announced today that it has agreed to terminate its merger with Shearson Home Loans, Inc., a wholly owned subsidiary of Consumer Direct of America, Inc. (OTCBB:CSUAE), effective May 15, 2006. Under the agreement, Paragon will recoup 149,558,791 shares of its common stock and 79 shares of its Series F Preferred Stock, and will pay Consumer Direct of America, Inc. approximately $21,000 in costs incurred by Consumer Direct of America, Inc. as a result of the unsuccessful transaction.
"While it was disappointing that our plan to acquire Shearson did not materialize the way we had originally envisioned, I am pleased to announce that we have re-engaged our prior investment banking relationship with Crusader Securities and, as a result, are hopeful that a modest capital infusion sufficient for us to pursue our business strategy is imminent," said Paul Danner, Interim Chief Executive Officer of Paragon. "We continue to be optimistic about the Company's acquisition and organic growth plans, and are looking forward to pursuing a series of opportunities," he added.
About Paragon Financial Corporation
Paragon Financial Corporation (www.pgnf.com) is a financial services business focused on the acquisition of companies that originate mortgages loans or provide other financial services.
SEC Filings and Forward-Looking Statements
Certain information contained in this announcement are "forward-looking statements." Paragon cautions readers that certain important factors may affect actual results and could cause such results to differ materially from any forward-looking statements which may be deemed to have been made in this announcement or which are otherwise made by or on behalf of Paragon. The forward looking statements are identified through use of the words "potential," "anticipate," "expect," "planned" and other words of similar meaning. These forward-looking statements may be affected by the risks and uncertainties inherent in the mortgage industry and in the Company's business. The Company cautions readers that certain important factors may have affected and could in the future affect the Company's beliefs and expectations and could cause the actual results to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof. Factors which may affect results include, but are not limited to, the ability to raise capital necessary to sustain operations and implement the business plan, the ability to obtain additional regulatory permits and approvals to operate in the financial services area, the ability to identify and complete acquisitions and successfully integrate acquired businesses, if any, the ability to implement the company's business plan, changes in the real estate market, interest rates or the general economy of the markets in which the company operates. Additional information regarding Paragon is contained in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.