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RNS Number:9615X
Perstorp AB
29 January 2001

Document Dated 26 January 2001

Perstorp AB prepares Pergo for stock-exchange listing

-     New Board of Directors and management appointed for Pergo
-     Expensing of structural costs brought forward to 2000 accounts
-     Perstorp's full-year operating earnings amounted to SEK 600 million before
      items affecting comparability and SEK 410 million after such items
-     Annual General Meeting moved to May 9

At a meeting on Friday, the Board of Directors of Perstorp AB made several
decisions in preparation for the planned spin-off and Initial Public Offering of
the Pergo flooring operations during 2001. The main reason for these measures is
to provide Pergo with the best possible potential to develop as an independent
and future-oriented company.

A decision was taken regarding the composition of Pergo AB's Board of Directors,
whose members will be Kurth Augustsson, Michael Boris-Moller, Gunnar Brock,
Christer Gardell, Karl Stenstrom and Thomas Svensk. The Board's composition may
be supplemented at a later juncture. It is proposed that Christer Gardell be
Chairman of the Board.

As previously announced, Michael Boris-Moller has been employed as Pergo's
president.

It was stated in Perstorp AB's nine-month report, published on October 20, 2000,
that "due top expectations that the transition to direct laminate flooring
featuring another type of base will continue, further corrective measures within
Pergo will be required in the coming fiscal year." Ahead of the planned IPO of
Pergo during the year ahead, this work has been further accelerated and the
costs have been quantified within the framework of a concrete action plan.
Accordingly, the final accounts for 2000 will include the bringing forward of
structural costs for the write-down of fixed assets related to the flooring
subgroup. These costs total SEK 214 million, including SEK 41 million that was
included in the nine-month report. These measures have no effect on cash flow.

As a result, Perstorp's earnings will be affected by the following noncomparable
costs and revenues:

SEKm                                            Total           of which Q4

Write-down of fixed assets in Pergo             -117              -76
Write-down of fixed assets in Perstorp
 Declam (1)                                     - 97              -97
Other noncomparable costs in Pergo and Perstorp
 Declam (1)                                     - 91              -26 (2)
Costs related to the takeover process in
 2000(3)                                        - 16              -16
Other items affecting comparability             - 28              -28

Total costs affecting comparability             -349             -243

Nonrecurring revenues resulting from sale of
Perstorp Surface Materials                        89               14
Repayment of SPP pension funds                    61                -
Other noncomparable revenues                       9                9

Total revenues affecting comparability           159               23

1) The operations will be transferred to the Pergo subgroup during first quarter
of 2001.

2) Bonus and other incentive programs resulting from the decision to demerge
Pergo from the Perstorp Group and from the takeover process. The program
comprises about 20 senior executives within Pergo stationed in Sweden or abroad.

3) Includes legal expenses and fees to financial advisors.

Due to a certain slackening in the business trend, mainly during December,
Perstorp's operating earnings for 2000 amounted to SEK 600 million before items
affecting comparability, compared with the SEK 625 - 650 million indicated in
the forecast below. Adjusted for the structural costs that have been brought
forward, this corresponds to SEK 410 million, including items affecting
comparability. This figure pertains to the current Group structure, that is,
excluding demerged business units.

The full-year forecast made in the nine-month report was that "Assuming the
current favorable business trend continues, full-year earnings for the Group in
its current structure - that is, excluding demerged business units - are
expected to amount to SEK 625 - 650 m (460)". In this forecast, it was assumed
that the net result of items affecting comparability would be approximately
zero.

A complete account of Perstorp's development during 2000 will be presented in
the year-end report on February 9.

The ensure that Pergo is well prepared for its IPO, the Board has decided that
Perstorp AB's Annual General Meeting will be held on Wednesday, May 9. The
preliminary date indicated previously was April 3.

January 26, 2001
The Board of Directors of Perstorp AB

For further information, please contact CEO Ake Fredriksson, phone: + 46 435 386
06

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