Year-End Report for the period January 1 – December 31, 2005

Financial Highlights

(Figures in brackets (xx) correspond to the figures for the same period last year) • Net sales for the year were SEK 3,015 million (2,780). Net sales for the fourth quarter were SEK 816 million (682). • Net sales from the North American operations, accounting for approximately 61% of the company’s sales, increased to SEK 1,847 million (1,647). Net sales in the European operation increased to SEK 1,064 million (1,037). • The full year’s operating profit was SEK 174 million (-191). The fourth quarter’s operating profit was SEK 132 million (16). • Legal settlements contributed SEK 104 million to total operating results for the fourth quarter. Total legal expenses incurred for these settlements in 2005 were SEK 35 million. • Excluding items affecting comparability, the operating profit for the full year was SEK 81 million (62) and for the fourth quarter SEK 19 million (16). • The profit after tax for the period was SEK 166 million (-196). • The earnings per share for the year was SEK 3.07 (-3.68). • Capital expenditures for the year were SEK 258 million (184). The most significiant investment was for a state-of-the-art direct laminate bonding line in North America. Total depreciation and amortization was SEK 130 million (281). • Cash flow from ongoing operations over the year was SEK 129 million (-38). Cash flow for the fourth quarter was SEK 96 million (52). OUTLOOK 2006 • Net sales growth: 9 – 11%. • EBIT margin as percent of sales: 6 – 7%. • Return on capital employed: 16 – 18%. CEO Tony Sturrus - Comments “Today Pergo is pleased to report its improved annual and Q4 results for 2005. It was a year of significant progress with major capital projects and plant consolidations completed. The company also made significant organization changes and implemented profit improvement programs throughout the company. The Q4 result reflects accelerating growth in sales and profits and improvement in cash flow and working capital utilization. In Q4, consolidated net sales in local currency grew by 8% on a year over year comparison basis. Q4 sales in the North American market were particularly strong, with year over year growth in local currency of 12%. Our European business also grew with a rate of 3% in local currency for the quarter on a comparison basis. In Q4, operating profit excluding items affecting comparability increased to SEK 19 million from SEK 16 million realized in the comparable period last year. Higher sales and an improved business cost model were the primary contributors to the result. The European improvement program, initiated in the Q3 which was designed to save annualized cost of SEK 100 million, remains very much on track. We are confident that the savings will be fully realized in 2006. Our focus in 2006 will continue to be on the key metrics of sales and profit growth, with improved margins and working capital utilization. Assuming stable economic and market conditions during 2006, we believe our markets will continue to provide excellent growth prospects. This growth will occur throughout the year on a seasonal and variable basis as our major account programs are implemented. By capitalizing on the market growth and taking advantage of new market and account initiatives, our projection for the year will bring us closer to our stated goal of 8% EBIT return on sales and 20% return on capital employed. We expect consolidated net sales in 2006 to increase by 9% – 11% and operating profits to grow at a higher rate. The company ended 2005 in a stronger financial and improved competitive operating position. This condition makes us believe we can deliver improved financial results and create greater value in 2006.” Financial Hearings You are welcome to follow CEO Tony Sturrus’ presentation of the Year-end report at Operaterrassen in Stockholm, today February 20 at 3.00 p.m. You can also follow the presentation by phone or on the Internet. For further information, please visit or For further information, please contact: CEO Tony Sturrus, phone +46 410 36 31 00, e-mail: VP General Counsel and responsible for Investor Relations, Frida Rosenholm, phone +46 410 36 31 00, e-mail: IR- and Pressduty weekdays, phone +46 70 676 11 57

About Us

Pergo is a leading flooring company with leading market positions, particularly in Europe and the US. Net sales amount to approx. SEK 2,8 billion and the number of employees is around 800. Pergo developed laminate flooring at the end of the 1970s and launched the product in Europe during the 1980s. The company started sales in the US in 1994 and later also in Asia 1995 and Latin America 1997. The company's products have been marketed under the PERGO® brand name since 1989. The company is listed on the Stockholm Stock Exchange's Attract 40-list. For further information about Pergo, please visit our website



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