Unilin and Välinge Enter Cross-License Agreement

Wielsbeke, Belgium, January 14, 2007--Unilin and Välinge have reached an agreement to settle all pending disputes and to enter into a cross-license agreement. Both Unilin and Välinge are broadly recognized to be the pioneers of glueless assembly systems for hard flooring panels which are materialized in the Välinge patents based upon WO 94/26999 and the Unilin patents based on BE 9600527 and BE 9700344. In order to offer the market a more secure position in relation to both patent families, parties have after long and intensive negotiations, reached this understanding. Parties are creating a framework which will allow third parties to obtain a license under both companies’ patent rights through discussions with only one of the patent owners. Parties intend to finalize this agreement shortly and will then issue a more detailed memorandum.