Pergo in Arbitration With HW Industries

Trelleborg, Sweden, March 1—Pergo has begun arbitration proceedings with HW Industries GmbH & Co KG. The company said the case concerns the reciprocal claims submitted by both parties in respect to Pergo's in 2003 discontinued acquisition of outstanding shares in the then jointly-owned company, Witex AG. Pergo's acquisition was terminated since Witex was declared bankrupt. As previously announced, Pergo noted that it has been involved in arbitration proceedings with Witex' bankruptcy estate since the summer 2004. This dispute concerns claims that arose in 2002 between the parties within the framework of an earlier partnership. The company said it is uncertain at this point when these proceedings will be concluded, but final decisions will probably not be reached until some time in 2006. Considering the material so far presented in these disputes, Pergo said its assessment is that the overall outcome will not have a significant impact on the Pergo Group's result.