On October 2, 2013, SED International Holdings, Inc. announced that Paul Hastings LLP, legal counsel to a Special Committee of the Board which was formed to investigate the allegations made on behalf of certain of SED's shareholders, including Paragon Technologies, Inc. by Derek D. Bork of Thompson Hine LLP has completed its investigation and has found no credible evidence to support any of the allegations of misconduct alleged by Derek D. Bork.