STOCKHOLM, Sweden, March 1, 2005 (PRIMEZONE) -- Arbitration proceedings between Pergo and HW Industries GmbH & Co KG have started. The case concerns the reciprocal claims submitted by both parties in respect to Pergo's in 2003 discontinued acquisition of outstanding shares in the then jointly-owned company, Witex AG. Pergo's acquisition was terminated since Witex was declared bankrupt.
As previously announced, Pergo has been involved in arbitration proceedings with Witex' bankruptcy estate since the summer 2004. This dispute concerns claims that arose in 2002 between the parties within the framework of an earlier partnership.
It is uncertain at this point when these proceedings will be concluded, but final decisions will probably not be reached until some time in 2006.
Considering the material so far presented in these disputes, our assessment is that the overall outcome will not have a significant impact on the Pergo Group's result.
Trelleborg, Sweden, 1 March, 2005 Board of Directors for Pergo AB
For further comments, please contact:
Bertil Villard, Chairman -- phone +46 08 614 31 03 Goran Bernhoff, CEO -- phone +46 410 36 31 00
This is Pergo
Pergo is a leading flooring company with strong market positions, particularly in Europe and the US. Net sales amounted to MSEK 2,780 in full-year 2004 and the number of employees is around 800. Pergo developed laminate flooring at the end of the 1970s and launched the product in Europe during the 1980s. The company started sales in the US in 1994 and later also in Asia and Latin America. The company's products have been marketed under the Pergo(R) brand name since 1989. The company is listed on the Stockholm Stock Exchange's O-list. For further information about Pergo, please visit our homepage www.pergo.com.
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