FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2006

Trelleborg - October 25, 2006. PERGO AB (“Pergo” or “the Company”) (Nordiska börsen: PERG), the leading international flooring company, today announced its financial results for the third quarter and nine months ended September 30, 2006. Pergo’s consolidated accounts have been prepared according to International Financial Reporting Standards (IFRS) as adopted by the European Union.

THIRD QUARTER HIGHLIGHTS

• Net sales of SEK 683 million (SEK 769 million)
• Gross profit of SEK 107 million (SEK 182 million) with gross profit margin of 15.7% (23.6%)
• Operating loss of SEK -39 million (profit of SEK 22 million)
• Net loss of SEK -47 million (profit of SEK 18 million)
• Loss per share of SEK -0.90 (profit of SEK 0.34)


NINE MONTHS HIGHLIGHTS

• Net sales of SEK 2,282 million (SEK 2,199 million)
• Gross profit of SEK 517 million (SEK 531 million) with gross profit margin of 22.7% (24.2%)
• Operating income of SEK 45 million (SEK 42 million) with operating (EBIT) margin of 2.0% (1.9 %)
• Net income of SEK 24 million (SEK 33 million)
• Earnings per share of SEK 0.44 (SEK 0.60)


OUTLOOK

• The Board of Directors revised the Company’s earnings guidance for the full year 2006 on October 13, 2006. Pergo has lowered its 2006 guidance due primarily to North American customers rescheduling new product roll-outs and temporarily changing their inventory commitments. The revised guidance for 2006 is for 2-4% year on year sales growth, an operating margin of 3-5%, and a return on capital employed of 12-15%.
• The Board of Directors has also provided earnings guidance for full year 2007 with year on year sales growth expected to be in line with, or to exceed, the projected 9-14% laminate flooring industry growth in North America and 2-4% growth in Europe; and for the Company to achieve an 8% operating margin.


Tony Sturrus, President and CEO of Pergo AB, commented: “The disappointing third quarter results were largely affected by changes in the timing of planned product roll-outs and reductions in inventory levels by certain of our large North American retail customers. Our European operations continued to perform solidly and in line with Company expectations. The quarterly result is therefore a disappointing interruption in what has otherwise been a consistently improving sales and profitability trend.

“The revised guidance that has been provided clearly indicates an improving picture in the fourth quarter and 2007, compared to the third quarter 2006. The Company’s fundamentals are solid and the medium and longer term outlook for Pergo remains healthy. The delayed new product roll-outs are now expected to be completed by the second quarter of 2007. We also expect to realize normalized retail inventory commitments before the end of the year. We have made substantial investments throughout 2006 in order to expand existing retailer programs and develop new account relationships, in order to broaden and diversify our business base. The total investments include extra expenses of SEK 44 million for the year to date and SEK 22 million in the quarter. We expect these customer support investments, which include displays, in-store assistance and other fees, to lead to an improved 2007 performance, in line with our guidance. We remain well positioned as a market leader with high brand recognition, which will give us the opportunity to capitalize on future growth opportunities.”


For further information, please visit www.pergo.com or contact:
Tony Sturrus, CEO
Frida Rosenholm, General Counsel
& Head of Investor Relations
Tel: +46 410 36 31 00

Matthew Hooper
Investor Relations
Tel: +44 (0) 20 7321 5010
ir@pergo.com