M A K E Y O U R N E T W O R K S M A R T E R Growth for Network Video continues January - June 2006 Ray Mauritsson, CEO

Today`s Agenda This is Axis Highlights first six month The Axis market AXIS 212 PTZ Questions & Answers

Axis two main product areas Network Video Solutions Worldwide #1 position Axis largest product area, 88% of sales * Installed base of more than 700,000 units Network Print Servers Worldwide #2 position 9% of Axis sales * Installed base of more than 3,000,000 units *Q2 2006

Highlights January-June Total growth +35 % Continued growth within Video Extensive network video installations in Transportation & Retail Expansion in South Africa Award – Market Penetration Leadership award Increased numbers of partners

Sales January - June, 2006 Total Sales 540 MSEK (401) Growth 35% Currency effects 26 Video Sales 469 MSEK (313) Growth 50% MSEK Growth

Sales Q2, 2006 Print 9 % Video 88 % Other 1 % Americas 41 % EMEA 48 % Asia 11 % Scan 2 % *Q2 2006

EBIT January – June, 2006 Stable margins Gross margin: 54.2 % (54.0 %) Operating margin: 15.1 % (13.8 %) Profit margin: 15.0 % (13.7 %) MSEKMargin

World wide organization Sweden HQ Singapore Benelux France Nordics, EE & Russia UK China Australia Korea Taiwan San Diego Canada South America Boston Spain & Portugal Germany Italy Middle East & Africa Japan South Africa

Total: 7300 (end of June 2006) Channel Partner Program Solution Gold Authorized Solution Silver/ Premium ADP partners: 340

Customer segments Retail Bank Transportation Government Education Industrial

Customer case - Transportation, Stockholm Photo:SLs website Approx 3,000 cameras will be installed in train and subway stations Axis network cameras on SL buses

Axis – the market leader.. the company that has demonstrated strategic excellence in product innovation, marketing, and sales strategies that have resulted in the largest gain in market share over the past two to three years. …

© Copyright 2006 IMS Research Axis – World Leader for Network Cameras EMEA Americas AsiaWorld Panasonic Toshiba Mobotix Panasonic Mobotix Panasonic

© Copyright 2006 IMS Research Axis – World Leader for Video Servers

AXIS 212 PTZ Unique overview image One click close-up Pan tilt and zoom without any moving parts Pan/tilt/zoom speed over one image

Market leadership Professional Network Video Future outlook, Axis goals Focused product range Aggressive product development Intelligent solutions Focused business model Channel partnerships Focused employees and focused company

Questions & Answers