Pergo and HW Settle Arbitration

Stockholm, Sweden, March 3, 2006--Pergo AB, Pergo Holding BV and HW Industries GmbH & Co. KG are pleased to announce that the arbitration between HW Industries and Pergo AB initiated during the first quarter 2005 has been settled on mutually beneficial terms. The now settled dispute stemmed from the termination in 2003 of the Share Purchase Agreement relating to the remaining shares in Witex AG, which is now in bankruptcy. The parties have agreed not to disclose the specific terms of the settlement, but have agreed to disclose that the net financial effect of the settlement will be an elimination of legal fees related to the dispute going forward.