Pergo: Faus Action Without Merit


STOCKHOLM, Sweden, Aug. 19, 2005 (PRIMEZONE) -- Pergo has been informed that the Faus Group has filed an action for patent infringement in Georgia, USA. Pergo has not yet been served with the complaint. The action alleges that some of Pergo's products infringe on Faus' U.S. patents. Pergo previously initiated several major legal actions against the Faus Group. We believe Faus has retaliated as part of their legal strategy. Pergo finds no legal grounds for Faus' claim that the Pergo product infringes on Faus' patent.

"The action initiated by Faus is clearly without merit and simply a frivolous retaliation. Pergo strongly believes that the identified product does not infringe on the asserted patents. We further believe the patents lack validity, in view of prior art and other factors, including Pergo's own Embossed In Register patents," says Tony Sturrus CEO of Pergo.

To provide some perspective, Pergo has previously initiated the following legal actions;

During autumn 2004, Pergo (Europe) AB initiated a criminal action against Industrias Auxiliares Faus S.L in Spain in which it alleged that Faus infringed the Pergo trademark when using the trademark to sell laminate flooring with glue free click joints in Spain without Pergo's consent. The action is pending and a decision is expected.

In August 2004, Pergo, Inc. started an action for damages and injunctive relief against Faus Group, Inc. and Industrias Auxiliares Faus S.L in North Carolina, USA. The suit charges Faus Group, Inc. and Industrias Auxiliares Faus S.L with copyright infringement, misappropriation of trade secrets, breach of contract, unfair and deceptive trade practices and unfair competition. The action is moving through the legal system.

In January 2005 Pergo Inc. and Pergo (Europe) AB filed an action for patent infringement against Faus Group, Inc. and Industrias Auxiliares Faus S.L in North Carolina, USA. The complaint alleges that the Faus group FasTrim product infringes the patents of Pergo (Europe) AB. During spring 2005 Pergo Inc. and Pergo (Europe) AB filed an additional action for patent infringement in the USA. The actions are pending. A hearing on a preliminary injunction requested by Pergo against the FasTrim product will take place in the beginning of September 2005.

In March 2005, Pergo (Europe) AB filed an action for patent infringement against Industrias Auxiliares Faus S.L in Spain. The complaint alleges that certain of Industrias Auxiliares Faus S.L's products infringe several of Pergo (Europe) AB's European patents.

"Pergo feels confident that the outcome of the legal proceedings against the Faus Group will be judged in Pergo's favour. Additionally, we strongly believe that the courts will acknowledge Pergo's pioneering patents and products encompassing breakthrough technology in its field," says Tony Sturrus CEO.

The legal action now filed by Faus concerns their U.S. patents 6,401,415 and 6,688,061.


 For further comments, please contact:

 CEO -- Tony Sturrus 
 Phone +46 410-36 31 00
 E-mail: tony.sturrus@pergo.com
 
 CFO -- Staffan Soderqvist
 Phone +46 410-36 31 00
 E-mail: staffan.soderqvist@pergo.com

 Communications manager -- Asa Ruhr
 Phone +46 410-36 31 00
 Mobile: +46 705-59 55 79
 E-mail: asa.ruhr@pergo.com

Pergo is a leading flooring company with leading market positions, particularly in Europe and the U.S. 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 U.S. 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 O-list. For further information about Pergo, please visit our Web site www.pergo.com.

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