Pergo Speaks Out on Faus Patent Infringement Case

Stockholm, Sweden, November 18, 2005--Pergo this morning issued a statement saying that its strategy to protect and defend Pergo's technology and know-how has, as earlier communicated, resulted in its initiating several legal cases against the Faus Group for, amongst other things, patent and copyright infringements. In one of the legal cases the U.S. District Court for the Eastern District of North Carolina on November 7, 2005, declined to grant a preliminary injunction requested by Pergo against Faus Group Inc's and Industrias Auxiliares Faus S.L's sales of a molding product which, Pergo said, infringes several of Pergo's patents. Pergo said the ruling concerns only one of six asserted patents, in one of Pergo's suits against Faus. The company said that while the Court indicated in the decision that Faus had raised certain questions about the validity of one of Pergo's patents, the Court also held that Faus had not proved the Pergo patent protecting, among other things, Pergo's revolutionary and innovative SimpleSolutions Four-in-One Molding product, to be invalid. It said that at trial, Faus cannot merely raise questions about validity but will be required to prove by clear and convincing evidence that the patent, as well as each of the other five asserted patents, are invalid. Pergo said the Court also noted that, based on the evidence Pergo is "viewed in the marketplace as the pioneer in the field of multi-configuration transition moldings." "This case is only one in a number of cases we have against Faus and the patent assessed in the decision is only one of six patents asserted against Faus in the case. We intend, at trial, to vigorously pursue our claims for infringement of all six of Pergo's patents, seeking a permanent injunction and monetary damages against Faus. We feel confident that the outcome of this legal proceeding, as well as the other legal proceedings, against the Faus Group will be in our favour,"' says Tony Sturrus CEO. Pergo said that the patent in question protects its invention which, among other things, can reduce the number of molding products by as much as 75 percent, while providing manufacturers, distributors and retailers greatly increased inventory turns.