Pergo/Witex Merger Will Not Be Completed by Year-e

Trelleborg, Sweden, Dec. 30--Pergo's on-going negotiation concerning the merger between Pergo and Witex will not be completed before year end. In November, Pergo had signed a Letter of Intent with the main shareholder of Witex AG, HW Industries GmbH & Co. KG, concerning a merger between Pergo and Witex. At that time the company indicated the merger would be completed by year end. Pergo owns a minority share of 25.1% in Witex, HW Industries owns the remaining shares. If the proposed merger is finalized, HW Industries will transfer all of its shares in Witex to Pergo. As payment, Pergo will issue new shares to HW Industries, whereby HW Industries will become a major shareholder in Pergo. The merger is conditional upon: the execution of a binding agreement; customary due diligence, possible antitrust approvals; and the approval of the issue in kind at an extraordinary shareholder meeting in Pergo.