Pergo Changes Option Program

Trelleborg, Sweden, August 18–At the Annual General Meeting on April 17, 2005, Pergo decided to implement a performance-related stock option program, according to which a total of 2,700,000 stock options should be allotted free of charge to approximately 20 managers in the group with a maximum of 100,000-300,000 stock options per individual depending on position.

At the Extraordinary General Meeting on Aug. 17, 2005, a decision was made to change the stock option program regarding the allotment structure and the possibility to early exercise in the event of a public offer to shareholders in the company. Following such changes the program comprises approximately 10 managers who will be allotted, free of charge, a maximum of 500,000-600,000 stock options per individual depending on position.

Each stock option gives the right to purchase one share in the company during the period May 1, 2007-March 1, 2008, at an exercise price of SEK 33.30.

The right to exercise the stock options requires continued employment as well as a certain, by-the-Board-established, accumulated operating result before financial items and tax (EBIT) during the fiscal years 2005-2006. The right to exercise any stock options will require an accumulated EBIT for the period 2005-2006 approximately four times higher than EBIT for 2004. The right to exercise the maximum number of stock options will require further improvement of EBIT.