Pfleiderer 3Q Net Up, Expands NA Laminate Share

Neumarkt, Germany, November 7, 2007--Pfleiderer AG said revenues rose 28.7% in the first nine months of 2007 due to the excellent performance in Western and Eastern Europe.

“Pfleiderer has continued on its profitable growth path in the third quarter of 2007,” said Pfleiderer AG's CEO Hans H. Overdiek. “We have significantly expanded our business, especially in Western and Eastern Europe. This growth has more than offset the effects of the company's weaker North American business. We are therefore well on track to reach our targets for the year and to report another set of record results.”

Pfleiderer said its proactive pricing policy had a positive effect on, as did gains in efficiency.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) improved significantly by 27.4% to EUR 183.9 million in the first nine months, and the EBITDA margin amounted to 13.7%.

Earnings before tax from continuing operations increased by 26.6% to EUR 68.5 million.

Cash flow from operating activities also rose by 56.8% to EUR 109.9 million. The group's total assets increased by 40% compared to the end of 2006 to EUR 1,922.2 million. The increase is primarily due to the initial consolidation of Pergo AB.

Pfleiderer maintained its high growth in Western Europe. Segment revenues climbed by 29.1 % in the first nine months compared to a year ago.

Pergo's European business activities also met expectations, with revenues ofEUR 76.8 million, and the company said its growth strategy in Eastern Europe on schedule.

The slump in consumer spending in North America hit Pfleiderer hard, the company said. However, Pfleiderer has strengthened its strategic position in North America with the Pergo takeover. Despite difficult conditions in the industry, the company said it stabilized sales, increasing its share of the North American laminate flooring market from an initial 15% to 20%.

In addition to strengthening the Company's strategic position, the Pergo integration is creating substantial synergies that will lead to savings in excess of EUR 25 million in 2008 and of approximately EUR 30 million in 2009, Pfleiderer said.

'We are not satisfied with the earnings situation in North America for the third quarter,” Overdiek said. “However, we shall have absorbed all the negative effects by the end of the year and shall then be, with Uniboard and Pergo, the market-leading integrated manufacturer of particleboard and laminate flooring in North America from a cost perspective as well.”

For 2008, Pfleiderer said it is expecting sales growth in Western and Eastern Europe to continue and its North American business to stabilize.