Pfleiderer Expands in Poland

Neumarkt/Grajewo, Poland, September 19, 2007--Pfleiderer Aktiengesellschaft today officially began operations at its new medium density fiberboard (MDF) plant in Grajewo, Poland.

This newest state-of-the-art plant for medium density fiberboard was constructed in Grajewo in ten months, and will in the first stage produce 250,000 cubic meters, or the equivalent of 100 million square meters of thin medium density fiberboard per year.

Pfleiderer invested a total of EUR 83 million in the facility. The first fiberboard already came off the line in July.

The operating company of the plant in Poland is a 50-50 joint venture between the majority-held Pfleiderer Grajewo S.A. and a wholly-owned subsidiary of Pfleiderer AG. Due to its approximately 65% interest in the listed Pfleiderer Grajewo S.A., the Pfleiderer Group will receive over 82% of earnings generated by the MDF plant.

“The new MDF plant in Poland is an important milestone in the Pfleiderer Group’s continued growth strategy,” said Hans H. Overdiek, Pfleiderer AG’s CEO.

“Going forward, we aim to capture a larger share of the Eastern European market by further expanding our production in Poland and Russia, as well as by making acquisitions in other regions.”

Eastern Europe’s engineered wood markets have long been among the Pfleiderer Group’s core growth markets and are gaining even more importance. Poland is an especially attractive and promising market, since demand for engineered wood products will experience double-digit growth rates there in the coming years.

Its particleboard plants in Poland and Russia and the new thin MDF plant in Grajewo, make it possible for Pfleiderer to offer a significantly expanded product portfolio, from raw particleboard to high-quality products and surface-finished engineered wood products.

Pfleiderer is expecting a 25% EBITDA margin for the Polish MDF plant as early as next year.