Pergo/Witex Merger On Hold

Trelleborg, Sweden, May 20--In April, Pergo's acquisition of Witex was postponed to sometime in May because financing for the new group had not yet been secured in a manner acceptable to the parties. Since then, the parties have jointly determined that it is not possible to obtain satisfactory financing for the new group. The decision was reached in light of Witex’s weakened financial performance this spring. Pergo currently owns 25.1% of the shares in Witex. As a shareholder Pergo will monitor its commercial and financial interest in the company. The parties will continue to assess the situation. Further information will be provided at a later date. On January 28, Pergo announced that an agreement had been signed whereby Pergo would acquire the remaining shares in Witex AG from HW Industries GmbH & Co KG.