STOCKHOLM, Sweden, May 3, 2005 (PRIMEZONE) -- As a consequence of recent information in the media, Pergo's Board of Directors wishes to clarify a number of articles that have contained a number of factual mistakes, both about activities and ownership issues.
Among the misleading information is that the European business is more profitable than the North American. According to the latest Q1 report, however, the operating profit in North America for Q1 2005 was SEK 32 million. Based on sales of SEK 441 million in North America this gives an operating margin of 7 percent.
The information about Pergo being sold or divested is wrong. The largest group of owners in Pergo, including AB Novestra, Laxey Partners, and M2 Capital Management, L.L.C., has stated to Pergo's Board that it fully supports the Board's decision about the strategic plan, which began in North America and is now being carried out through the whole Group. They also look positively upon allocating the necessary resources within the company to speed up this plan.
Statements that one single Board member was behind Goran Bernhoff's resignation are incorrect. Pergo's Board, where the new owners are represented, has total confidence in the recently elected CEO of the Group Tony Sturrus and other senior executives. The Board also believes that the conditions for the new senior executives to rapidly carry out the strategy decided on have improved considerably. The strategy is to go from a laminate flooring company to a flooring company and expand in-house production in Trelleborg and Garner with external production.
Pergo is a leading flooring company with leading market positions, particularly in Europe and the US. Net sales amount to approx. SEK 2,8 billion 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 1995 and Latin America 1997. 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 Attract 40-list. For further information about Pergo, please visit our website www.pergo.com.
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-0- For further comments, please contact: Bertil Villard -- Chairman of the Board Phone no: +46 707-14 31 03 email: bertil.villard@vinge.se CFO -- Staffan Soderqvist Phone no: +46 410-36 31 00 email: staffan.soderqvist@pergo.com Communications manager -- Asa Ruhr Phone no: +46 410-36 33 27 mobile: 0705-59 55 79 email: asa.ruhr@pergo.com