Pergo Lowers 2006 Guidance

Trelleborg, Sweden, October 13, 2006--Pergo today announced revised earnings guidance for the full year 2006 and also provided earnings guidance for full year 2007. The company lowered its 2006 guidance due to North American retail customers’ rescheduling of new product roll-outs and temporary changes to inventory commitments. Pergo’s previous guidance was for year on year sales growth of at least 15%, an operating (EBIT) margin in the upper end of a 6-7% range, and a return on capital employed of 16-18%. The revised guidance is for 2-4% year on year sales growth, an operating (EBIT) margin of 3-5%, and a return on capital employed of 12-15%, which will be reflected in the Company’s results for both the third and fourth quarters of 2006. The Company’s European operations have, however, continued to perform solidly and in line with Company expectations. The Company’s 2007 full year guidance is 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, CEO of Pergo, commented: “Our 2006 results are being adversely affected by changes in the timing of planned roll-outs and reductions in inventory levels by certain North American customers. The new product roll-outs, which were previously scheduled for completion in the second half of 2006, are now expected to be implemented in the first half of 2007. “The medium and longer term outlook for Pergo remains healthy and we are therefore providing guidance for 2007. We have made substantial investments during 2006 to expand our existing major retailer relationships and develop new channel and account relationships, in order to capitalize on our market leading positions moving forward into 2007.” Pergo will publish its financial results for the third quarter and nine months ended September 30, 2006 on Wednesday October 25, 2006.