Pergo Settles Disputes and Signs Deal with Valinge

Trelleborg, Sweden, February 5, 2007--Pergo AB said today it has entered into a patent settlement and cooperation agreement with Välinge Innovation AB.

The two parties have settled disputes relating to glueless flooring products by agreeing to cross-licensing of the parties' basic patents related to basic locking technology and new advanced locking systems, as well as a cooperation regarding technology development and utilization.

The cooperation includes opportunities of licensing both parties' extensive patent portfolios to third parties and the sharing of the resulting licensing revenues.

Tony Sturrus, CEO of Pergo, commented: "We have worked hard over an extended period of time to reach a mutually beneficial outcome of the disagreements with Välinge. Such disagreements are now in the past. We are pleased that these agreements provide a good platform for current and future cooperation with Välinge to leverage both companies' extensive product and patent portfolios."

The agreements are subject to change of control provisions in the context of the announced intended public tender offer by Pfleiderer Sweden AB for all of Pergo's issued share capital, which would make it possible for Pergo to cancel the agreements if so desired, following a potential acquisition of Pergo.