Pfleiderer Announces Record 2007 Results

Neumarkt, Germany, February 28, 2007--Pfleiderer AG said it has achieved the best results in its history, based on preliminary figures for the year 2006, and has slightly surpassed its guidance for the full year.

In fiscal 2006 (January 1 to December 31, 2006), revenues rose by 71% to EUR1.415 billion (2005: EUR829.3 million). In addition to strong growth in Pfleiderer's markets, this dynamic development was particularly due to the successful integration and consolidation for the full year of the Kunz engineered wood group. In addition, systematic expansion of the Group's engineered wood activities in Eastern Europe and North America also led to increased revenues.

Net earnings for the Group rose by 191% to EUR83.9 million (2005: EUR28.8 million). Earnings per share for continuing operations rose from EUR0.56 to EUR1.00. Basic earnings per share rose from EUR0.63 to EUR1.67, while diluted EPS rose from EUR0.67 to EUR1.66.

Major improvements in all regions Business Center Western Europe profited from strong demand from the Western European furniture industry, as well as from the successful integration of the German Kunz organisation. The Group achieved revenues of EUR774.0 million in Western Europe (2005: EUR551.8 million), an increase of 40%. Earnings before interest, income taxes and depreciation (EBITDA) improved to EUR103.6 million (2005: EUR63.0 million). Here too, synergies and economies of scale were major factors in achieving this excellent result. Cost structures have been further optimized by the centralized control of strategic procurement and purchasing activities by Pfleiderer and Kunz. At the same time, focusing on market segments through independently operating business units has also had a positive effect.

Fully consolidated for a full year for the first time following the Kunz acquisition, Business Center North America posted total revenues of EUR349.6 million for 2006. This Business Center profited in particular from good market conditions for raw and surfaced products in North America. With EBITDA of EUR52.5 million, its gross margin amounted to 15.0%. The panel division was able to fully compensate slower revenue and profitability development in laminate flooring. Good balance sheet structure In addition to the strong cash flow from operating activities, the successful capital increase in April 2006 and receipts from the disposal of the Business Unit track systems greatly improved the balance sheet structure.

Outlook for 2007 and 2008 As a result of the positive conditions, the Executive Board anticipates revenues of EUR1.6 billion and EBITDA of at least EUR235 million in the year 2007, representing an EBITDA margin of around 15%. The full acquisition of Pergo AB, in which Pfleiderer currently has a 96.6% equity interest, can contribute to additional increases in revenues and earnings in 2007. The Executive Board expects the Pergo Group to generate revenues in excess of EUR300 million and EBITDA of over EUR35 million in full-year 2007. Against this backdrop, the Executive Board anticipates total revenues in excess of EUR2.0 billion and an EBITDA margin of over 15% for the whole Group in 2008.