On January 14, 2013, Paragon Technologies, Inc. announced that it has requested that the SED International Holdings, Inc. appoint 2 persons designated by Paragon to the Company's Board of Directors. In addition, Paragon stated that as of January 14, 2013, this request has not resulted in an offer from or agreement with the Company relating to such request. Further, Paragon stated that it intends to further pursue representation on the Company's Board of Directors, whether through discussions with the Company, taking action to remove one or more or all of the current members of the Board of Directors and/or elect one or more or all of the members of the Board of Directors at an annual or special meeting of shareholders of the Company or otherwise, buying additional shares of common stock of the Company, effecting a tender offer for some or all of the shares of common stock of the Company, or through other means.