Pfleiderer Affirms 2007 Growth Forecast

Neumarkt, Germany, October 17, 2007 - Pfleiderer AG has confirmed its growth forecasts for 2007.

Including the consolidation of the Pergo Group, the company anticipates total sales revenues of approximately €1.9 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of between €240 and €250 million. This represents revenue growth of more than 30% and EBITDA growth of between 15% and 20% compared with the prior year, despite higher costs caused by the integration of Pergo.

The integration of the Pergo Group, which Pfleiderer acquired in March 2007, is making rapid progress and will be virtually completed by the end of 2007, the firm said.

Pfleiderer has expanded its market share in North America this year. Due to the difficult economic situation in North America, Pfleiderer has also initiated comprehensive structural changes in Pergo. The changes include the merger of production facilities as well as of purchasing, logistics and administrative functions, and involve staff reductions of approximately 15% in Canada and the United States.

Pfleiderer said the changes will lead to significantly lower structural costs as soon next year.