Pergo Recommends Acceptance of Cash Offer

Trelleborg, Sweden, January 15, 2007—Pergo’s board said it has received a formal public cash offer for all of Pergo’s 53,569,685 shares. The offer, which is being made to all Pergo shareholders, has been announced by Pfleiderer AG through its indirectly wholly owned subsidiary Pfleiderer Sweden AB, which is one of Europe’s leading system providers for engineered wood products and melamine faced chipboard. The offer price was for SEK 51 (US$0.61) in cash per Pergo share, which values the offer at SEK 2.73 billion ($353M), Pergo’s board of Directors unanimously recommends the Offer. Laxey Partners Ltd, M2 Capital Management LP, and Nove Capital Fund, which together represent 41.9% of Pergo’s share capital and voting rights, have irrevocably and unconditionally committed to tender their shares to Pfleiderer. In addition, Nordea Fonder, representing 6.9% of the share capital and voting rights has communicated that it supports the offer Pergo’ board of Directors of Pergo has permitted Pfleiderer to perform a due diligence process prior to the announcement of the public tender offer. Pfleiderer has been provided with certain non-public information, which is summarized in this announcement “The board of directors has recommended Pfleiderers offer based on its opinion that it represents a good value to Pergo´s shareholders and at the same time secures Pergo´s possibilities to maintain or even improve it`s leading position in the on-going consolidation of the global laminate flooring industry. Pfleiderer, as a strategic owner, will give Pergo the resources and opportunities it deserves to develop it´s business to the benefit of Pergo´s customers, employees and future partners.” says Bertil Villard chairman of the board of directors of Pergo. “We view Pfleiderer as a great source to help leverage Pergo’s leading brand and retail position by providing a superior technological and cost competitive manufacturing base. The combination would truly result in a vertically integrated global manufacturing and marketing powerhouse”, says Tony Sturrus, CEO of Pergo. Pergo had a third-quarter loss. It said today sales last year dropped 3 percent to 2.94 million kronor, instead of the 2-4 percent gain it had budgeted for. The company’s birectors reiterates its previously issued 2007 full year guidance 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. The flooring industry is undergoing consolidation, as evidenced by the recent mergers and acquisitions activity in the sector. Pergo said it received several approaches from third parties during the latter half of 2005 and first half of 2006, with a view to initiating merger talks. It said these approaches did not lead to any formalized proposals but did lead the board to initiate a formal process for evaluating approaches received from third parties and a proactive process to consider the strategic alternatives open to Pergo in the context of a consolidating industry. The board, according to the company, consequently appointed ABG Sundal Collier as its independent financial advisor to assist with these processes. Pfleiderer, according to the company, subsequently expressed interest in a potential acquisition of Pergo and the board has therefore allowed Pfleiderer to perform a due diligence process. Following this process, Pfleiderer has today, through its indirectly wholly owned Swedish subsidiary Pfleiderer Sweden AB, announced a public cash offer for all of Pergo’s shares. According to today’s announcement by Pfleiderer, Pergo’s shareholders are being offered SEK 51 per share in cash to tender their shares to Pfleiderer. The acceptance period for the Offer is expected to begin during the week commencing on January 29, 2007 and run for