Pergo and Witex to merge

Pergo and Witex to merge As announced previously, Pergo AB and the main shareholder of Witex AG - HW Industries GmbH & Co. KG - have had discussions concerning a merger between Pergo and Witex. Currently Pergo owns 25.1% of Witex AG, while HW Industries owns the remaining shares. These negotiations have now been concluded and the parties have signed a binding agreement whereby Pergo will acquire all shares in Witex owned by HW Industries. Pergo will acquire all of HW Industries shares in Witex by a directed share issue and a cash consideration of MEUR 6. After completion of the transaction, HW Industries will own 20% of the shares in Pergo and become its largest shareholder. A total of 13,392,421 new shares will be issued. In conjunction with an Extraordinary General Meeting of shareholders, HW Industries will receive representation on the Board of Directors. The parties estimate that closing will be in April 2003. The integration of Pergo and Witex will create a very strong, global laminate flooring group with leading market positions in Europe and North America and strengthened presence in Asia. Witex's know-how in manufacturing, combined with Pergo's strengths in marketing and innovation, forms a platform for profitability and future growth. After the acquisition, annual sales for the Pergo Group are initially estimated to amount to about SEK 5 billions. The merger is expected to result in increased revenues due to a broader product range, lower costs, particularly in distribution and production, as well as economies of scale in design, product development and purchasing. The merger is conditional upon e.g. bank commitments, approvals from the antitrust authorities and the approval of the directed share issue at an Extraordinary General Meeting in Pergo. Notification to attend the Extraordinary General Meeting will be forwarded in the near future. Additional information will be distributed prior to the Extraordinary General Meeting. Trelleborg 2003-01-28 Pergo AB Corporate Communication For further information, please contact: Chairman of the board - Bertil Villard +46 8 614 3103 CEO - Raimo Issal, +46 410 36 31 00 CFO - Annette Kumlien, +46 410 36 31 00 Witex is a German-based laminate flooring company. The company was founded in 1978 and was acquired by HW Industries in 1998. Witex has manufacturing plants in Augustdorf, Germany where also the headquarters is located and in Mentakab, Malaysia. Its products are sold on a world-wide basis, although its largest individual markets are Germany, France, UK and the US. Since 2000, Witex has supplied Pergo with direct laminated flooring. Witex had in 2002 a turnover of about SEK 1.8 billion. The number of employees is about 600. Pergo is the inventor and world's leading marketer and manufacturer of high- quality laminate flooring. Pergo® was introduced in Europe in the 1980's and was launched in the United States in 1994. The Pergo Group, with headquarters in Trelleborg, Sweden has manufacturing facilities in Garner, North Carolina, Trelleborg, Sweden and Perstorp, Sweden. The North American headquarters are in Raleigh, North Carolina. The company is listed on the Attract 40 List of Stockholmsbörsen (Stockholm Exchange). For additional information, visit www.pergo.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/01/28/20030128BIT00090/wkr0001.doc http://www.waymaker.net/bitonline/2003/01/28/20030128BIT00090/wkr0002.pdf