Pfleiderer to Issue Hybrid Bond

Neumarkt, Germany, April 10, 2007--Following the acquisition of the Swedish Pergo AB and by expanding its worldwide market presence especially in the high margin engineered wood business, MDAX-listed Pfleiderer AG plans to issue hybrid bonds with a volume of EUR 200 - 250 million via its financing vehicle Pfleiderer Finance B.V., Deventer, the Netherlands. Pfleiderer AG currently has a senior unsecured rating of Ba2 with stable outlook by Moody's and BB with positive outlook by Fitch. The bonds will be guaranteed on a subordinated basis by Pfleiderer and are expected to be rated two notches below the guarantor's senior-/ IDR ratings by both agencies. The exact terms of the bonds will be determined based on market conditions, following a pan-European road show. ABN AMRO and Barclays Capital are the joint structuring advisors and joint lead managers for Pfleiderer's envisaged hybrid capital transaction. The bonds will be accounted for as equity in accordance with IFRS (International Financial Reporting Standards) and will also be assigned 50 % and 75% 'equity credit' by Moody's and Fitch respectively. The proceeds of the issue together with other financial sources will be used to repay the bridge loan drawn to finance Pfleiderer's recent strategic acquisition of Pergo AB. The issuance of hybrid bonds will increase Pfleiderer's financial flexibility. 'The use of hybrid capital is in line with Pfleiderer's strategy to pursue acquisitions via equity and equity-like instruments to ensure that acquisitions do not impair Pfleiderer's steadily improving credit profile' says Derrick Noe, Chief Financial Officer of Pfleiderer AG.