Pergo’s Board Proposes Performance Related Option

Trelleborg, Sweden, March 16--The Board of Directors of Pergo has passed a resolution to propose to the Annual General Meeting on the 18th of April 2005 the implementation of a performance related personnel option plan. It is proposed that a total of 2.7 million personnel options are to be issued to approximately 20 employees in the group management. Each personnel option shall entitle to an acquisition of a share in the company during the period the 1st of May 2007 to the 1st of March 2008 to an exercise price corresponding to 130 per cent of the average market value during a period in connection with the point of allotment. Allotment of personnel options shall be made with a maximum of 100,000 -- 300,000 options per person depending on the employment position. The right to acquire options is conditional upon a continuous employment as well as the achievement of a certain total profit/loss before financial items and taxes (EBIT) during the financial years 2005 -- 2006. Promissory notes with options for subscription for 2.700.000 new shares shall be issued to wholly owned subsidiaries in order to secure the company's commitments according to the personnel option scheme. A total utilization of the proposed options will lead to a dilution of approximately 4,8 per cent of the share capital and votes. Additional information will be provided in the invitation to the Annual General Meeting, which will be published on the 18th of March 2005 as well as in the Board of Director's complete proposal for resolution, which will be available at the company as from the 4th of April 2005.