PERGO SETTLES PATENT DISPUTES AND ENTERS INTO COOPERATION WITH VÄLINGE INNOVATION

Trelleborg – February 5, 2007. Pergo AB (“Pergo” or “the Company”) (PERG), a leading international flooring company, today announced that it has entered into a patent settlement and cooperation agreement with Välinge Innovation AB. The two parties have settled disputes relating to glueless flooring products by agreeing to cross-licensing of the parties' basic patents related to basic locking technology and new advanced locking systems, as well as a cooperation regarding technology development and utilization. The cooperation includes opportunities of licensing both parties' extensive patent portfolios to third parties and the sharing of the resulting licensing revenues.

Tony Sturrus, CEO of Pergo, commented: "We have worked hard over an extended period of time to reach a mutually beneficial outcome of the disagreements with Välinge. Such disagreements are now in the past. We are pleased that these agreements provide a good platform for current and future cooperation with Välinge to leverage both companies' extensive product and patent portfolios."

The agreements are subject to change of control provisions in the context of the announced intended public tender offer by Pfleiderer Sweden AB for all of Pergo's issued share capital, which would make it possible for Pergo to cancel the agreements if so desired, following a potential acquisition of Pergo.

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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 38 84

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

Pergo is a leading international flooring company with established market positions in Europe and the USA. Pergo generated net sales of over SEK 3 billion in 2005 and employs over 600 people. Pergo developed laminate flooring at the end of the 1970s and launched its product in Europe during the 1980s. The Company began selling its products 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 SimpleSolutions brand since 2005.

The Company’s shares are listed in the Mid Cap Industrials sector of the Nordic Stock Exchange under the symbol ‘PERG’.