Pergo 4Q Earnings Off

Trelleborg, Sweden, February 21, 2007--Pergo reported its financial results for the fourth quarter and twelve months. Net sales for the quarter were SEK 668 million (US$94.2M), verses SEK 816 million (US$116M) in the year ago period. Gross profit for the period was SEK 159 million (US$22.4M) compared with SEK 194 million (US$27.4) in the prior year, with gross profit margin of 23.7% (23.7%).

The company reported operating profit of SEK 28 million (US$36.7M) verses (SEK 132 million (US$ 173.2M) and net profit of SEK 15 million (US$19.7M) verses SEK 133 million (US$174.6M) in the prior period. Earnings per share for the quarter were SEK 0.28 (US$37) compared with (SEK 2.47) (US$3.24) in the prior period.

The the year 2006 the company reported net sales of SEK 2,950 million (US$173.2M) compared with (SEK 3,015 million (US$3.96B) and gross profit of SEK 676 million (US$886.9M) compared with (SEK 725 million) (US$951.3M) with gross profit margin of 22.9% verses 24.0% in the prior period. Operating profit for the year were SEK 73 million (US$95.8M) compared with (SEK 174 million (US$228.3M)in the prior period . Net profit was SEK 39 million (US$51.2M) verses (SEK 166 million) (US$217M ) and earnings per share of SEK 0.72 (US$0.95) compared with (SEK 3.07) (US$4.03) in the prior period.

The company said that in the quarter it received a formal public cash offer for all of Pergo’s shares by Pfleiderer Sweden AB of SEK 51 per share ($0.66), which values the offer at SEK 2,732 million ($US 3.59M). The Pergo’s Board of Directors unanimously recommended the offer. Acceptance period for the offer closes on February 23, 2007

The Board of Directors has reiterated its previously issued full year 2007 guidance for year on year sales growth to be in line with, or exceed, the projected 9-14% laminate flooring industry growth in North America and 2-4% growth in Europe; and for the Company to achieve an 8% operating (EBIT) margin.

Tony Sturrus, president and CEO of Pergo AB, commented: “The final full year sales result came in slightly above the levels indicated at the time of the trading update that we published in the middle of January, while operating profits were slightly lower. The performance of our North American operations during the second half of 2006 was clearly disappointing, while our European operations reported significantly increased margins throughout the year. The fourth quarter results for our North American operations were more adversely affected by the delayed roll-outs and retailer inventory reductions by customers than previously anticipated, and also coincided with softening consumer demand”.

“We expect the new product roll-outs by key North American customers to be completed by the end of the first half of 2007 and, therefore, maintain a positive outlook for 2007 and beyond. The investments that we have made to expand our existing key retailer relationships, and to develop new channel and account relationships, position us well to regain sales momentum in 2007.”