Pergo to Accelerate its Improvement Program

The Board of Pergo has approved the management’s recommendation to hasten the restructuring of its European operations. After having recently completed the consolidation of its manufacturing facilities in Sweden, the Company will now look to further optimize its cost structure.

The program will focus on reducing corporate and fixed overheads, improve productivity and create global synergies in purchasing, information technology as well as product design and development. The changes planned in the business model will produce approximately SEK 100 million in annualized savings. The impact of these actions will be fully realized in 2006. Additional costs associated with the improvement program will be absorbed in our current operating outlook and are not expected to have any material effect on 2005 anticipated results. “The right sizing of the European business model, says Tony Sturrus, CEO of Pergo AB, is consistent with the commitment to improve competitiveness and financial performance. It will enable us to move more quickly and drive to achieve our targets of 8% profitability and 20% return on Capital Employed.” For further information, please contact CEO – Tony Sturrus, phone +46 410-36 31 00, E-mail: tony.sturrus@pergo.com CFO – Staffan Söderqvist phone +46 410-36 31 00, E-mail: staffan.soderqvist@pergo.com Communications Manager – Åsa Ruhr, phone +46 410-36 31 00, mobile: 0705-59 55 79, E-mail: asa.ruhr@pergo.com