Q1 Report for the period January 1 – March 31, 2006

(Figures in brackets (xx) correspond to the figures for the same period last year) Financial Highlights • Net sales for the period increased by 8% to SEK 768 million (713). • Net sales from the North American operations, accounting for approximately 63% of the company’s sales, increased by 10% to SEK 487 million (441). Net sales in the European operation increased by 4% to SEK 263 million (252). • The period’s operating profit improved by 83% to SEK 42 million (23). • The period’s operating profit margin improved to 5.5% from last year’s 3.2%. • The profit after tax for the period was SEK 35 million (20). • The earnings per share for the period was SEK 0.65 (0.37). • Total capital expenditures for the period were SEK 35 million (69). Total depreciation and amortization was SEK 33 million (31). • Cash flow from ongoing operations for the period was SEK -71 million (-50). Outlook 2006 On the heels of a strong first quarter, we are raising our guidance for net sales growth to 10–15% from 9–11% previously presented and leaving our outlook for operating margin as percent of sales and return of capital employed unchanged. • Net sales growth: 10–15%. • Operating profit margin as percent of sales: 6–7%. • Return of capital employed: 16–18%. CEO Tony Sturrus comments “Pergo’s record first quarter operating results being reported today build on our dual themes of growth and profit improvement. Net sales grew on a year-over-year basis by 8%. The strong sales momentum in North America during last year’s fourth quarter was maintained even though our major promotional and new product programs will be launched during the second and third quarters of 2006. Our European operation also solidly contributed to the group’s growth. Operating profit and margin also improved significantly on a comparative basis. Excluding items affecting comparability, operating profit increased to SEK 49 million from SEK 23 million in first quarter 2005. The operating profit margin improved to 6.4% from last year’s 3.2%. On a reported basis, the operating profit was SEK 42 million versus SEK 23 million, or an 82.6% year-over-year increase. The operating profit margin was 5.5% versus 3.2%. Higher then anticipated sales and improved product and overall business costs were the primary contributors to the improved results. Assuming stable economic and market conditions, we continue to believe that Pergo has excellent growth and profit prospects. As previously stated, our sales growth will occur on a variable basis throughout the year and our reported first quarter sales results reflect that pattern. We are encouraged by the reported results and appreciative of the support provided by our key business partners. This environment makes us believe we can deliver improved financial results and create greater long-term value.”