PERGO LOWERS 2006 EARNINGS GUIDANCE AND PROVIDES 2007 GUIDANCE

Trelleborg, October 13, 2006 - PERGO AB (“Pergo” or “the Company”) (Nordiska Börsen: PERG), one of the world’s leading flooring companies, today announced revised earnings guidance for the full year 2006 and also provided earnings guidance for full year 2007. Pergo is lowering its 2006 guidance due to North American retail customers’ rescheduling of new product roll-outs and temporary changes to inventory commitments. The Company’s previous guidance was for year on year sales growth of at least 15%, an operating (EBIT) margin in the upper end of a 6-7% range, and a return on capital employed of 16-18%. The revised guidance is for 2-4% year on year sales growth, an operating (EBIT) margin of 3-5%, and a return on capital employed of 12-15%, which will be reflected in the Company’s results for both the third and fourth quarters of 2006. The Company’s European operations have, however, continued to perform solidly and in line with Company expectations.

The Company’s 2007 full year guidance is for year on year sales growth to be in line with, or 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 (EBIT) margin.

Tony Sturrus, CEO of Pergo, commented: “Our 2006 results are being adversely affected by changes in the timing of planned roll-outs and reductions in inventory levels by certain North American customers. The new product roll-outs, which were previously scheduled for completion in the second half of 2006, are now expected to be implemented in the first half of 2007.

“The medium and longer term outlook for Pergo remains healthy and we are therefore providing guidance for 2007. We have made substantial investments during 2006 to expand our existing major retailer relationships and develop new channel and account relationships, in order to capitalize on our market leading positions moving forward into 2007.”

Pergo will publish its financial results for the third quarter and nine months ended September 30, 2006 on Wednesday October 25, 2006.

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For further information, please visit www.pergo.com or contact:

Tony Sturrus, CEO
Frida Rosenholm, General Counsel & Head of Investor Relations
Tel: +46 8 790 3884

Matthew Hooper, Investor Relations
Tel: +44 (0) 20 7321 5023
ir@pergo.com



Pergo is one of the world’s leading flooring companies with market leading positions in Europe and the US. Pergo employs approximately 650 people and generated SEK 3 billion of net sales in 2005. Pergo pioneered the development of laminate flooring at the end of the 1970s and launched its products in Europe in the 1980s; in the US in 1994; in Asia in 1995; and in Latin America in 1997. The Company’s products have been marketed under the PERGO® brand since 1989 and under the SimpleSolution brand since 2005. The Company’s shares are listed on the Mid Cap-list of Nordiska Börsen under the symbol ‘PERG’.