Pergo Issues Annual Report

Stockholm, Sweden, April 12, 2006--Pergo announced that its 2005 Annual Report is now available to be downloaded from the company's website. The following is a summary of some of the results from that report: • Net sales were SEK 3,015 million, (US$ 390.6 million) vs. SEK 2,780 million (US$360.3 million). The operating profit was a record SEK 174 million (US$ 22.5 million) compared with SEK -191 (US-$24.6 million). • Net income was at an all time high of SEK 166 million (US$21.5 million) vs. SEK -196 million (US-$25.4 million) and earnings per share were a record SEK 3.07 million (US$39.8 million) vs. SEK-3.68 million (US-$47.7 million ). • Excluding items affecting comparability, the operating profit was a record SEK 81 million (US$ 10.5 million vs. SEK 62 million (US$8.0 million). Items affecting comparability mainly refer to legal settlements and European restructuring costs. • Cash flow from operations improved to SEK 129 million (US$16.7million) vs. SEK -38 (US-$4.9 million ). • Independent studies in North America confirm that Pergo is the most recognized flooring brand. • Pergo Europe launches products featuring the latest innovations. • To strengthen its market and competitive position, Pergo North America completed a SEK 150 million (US$19.5 million) plant expansion program. This very modern facility in Garner, North Carolina, became fully operational in the fourth quarter. • Pergo Europe completed a major plant consolidation and restructuring program. • Pergo agreed to the settling of a number of outstanding litigations, resulting in the recording of a fourth quarter gain of SEK 104 million (US$13.5 million). The company incurred legal expenses of SEK 35 million (US$4.5 million) during the year, associated with the legal cases settled during 2005. Annual General Meeting Pergo will hold its Annual General Meeting on Wednesday April 26, 2006 at 3.00 pm, in Carolinahallen, S:t Gertrud Konferens, Östergatan 7B, Malmö, Sweden.