Pergo Receives Settlement in Witex Dispute

Trelleborg, Sweden, January 2, 2007--Pergo AB, said it has successfully settled the arbitration case initiated by the bankrupt estate of Witex AG against Pergo Holding BV in June 2004. The settlement also included any and all other outstanding disputes with Witex. The settlement requires a cash payment of EUR 325,000 to Pergo, as well as the transfer of the www.pergo.pl and www.pergo.com.pl internet domains, which were registered by Witex, to Pergo. Frida Rosenholm, vice president and general counsel, commented: "We have now successfully settled eleven major litigations in the last eighteen months. These settlements have lead to substantial payments and acknowledgements of our intellectual property rights by third parties. The litigations and subsequent settlements demonstrate our commitment to protecting and enhancing our market-leading positions and intellectual property, while at the same time moderating our overall legal costs.” This settled arbitration related to a Share Purchase, Subscription and Partnership Agreement entered into between Pergo and Witex in 2000.