Decision at the Extraordinary General Meeting on August 17, 2005

At the Annual General Meeting on April 18, 2005 a decision was made to implement a performance-related stock option program, according to which a total of 2 700 000 stock options should be allotted free of charge to approximately 20 managers in the group with a maximum of 100 000 – 300 000 stock options per individual depending on position. At the Extra-ordinary General Meeting on August 17, 2005 a decision was made to change the stock option program regarding the allotment structure and the possibility to early exercise in the event of a public offer to shareholders in the company. Following such changes the program comprises approximately 10 managers who will be allotted, free of charge, a maximum of 500 000 – 600 000 stock options per individual depending on position. Each stock option gives the right to purchase one share in the company during the period May 1, 2007 – March 1, 2008 at an exercise price of SEK 33.30. The right to exercise the stock options requires continued employment as well as a certain, by the Board established, accumulated operating result before financial items and tax (EBIT) during the fiscal years 2005 – 2006. The right to exercise any stock options will require an accumulated EBIT for the period 2005 – 2006 approximately 4 times higher than EBIT for 2004. The right to exercise the maximum number of stock options will require further improvement of EBIT. Trelleborg, August 17 2005 Pergo AB (publ)