AXIS Communications - a world of intelligent networks CEO Peter Ragnarsson

Nine months 2002 Increased profit and growth Net sales for comparable units: SEK 502 M (487) Operating profit for comparable units: SEK 30 M (loss:91) Cash flow from operating activities: SEK 8 M (neg:59)

This is Axis A global, established and profitable company A broad product portfolio meeting customer´s needs An innovative market leader Proven technology and intensive R & D

A growth company Heading towards 30% growth goal Huge market potential in Video Market opportunities in Print and other areas Leading positions in growth and mature markets Innovations

Global sales and marketing channels Offices in 14 countries 95% exported to over 70 countries Almost 1,000 distributors worldwide Between 50,000 and 100,000 resellers Strategic industrial partnerships

Network Camera & Video Server Worldwide #1 Intelligent network solutions Network Printing Worldwide #2 Network Scan & Store Wireless Access Axis ThinServer Technology

Print server market Worldwide #2 position HP interested in long life market Increased network connectivity Development of new geographic markets Wireless solutions

The Camera and Video market Worldwide #1 position Increased demand for advanced security and surveillance solutions Transition from analog CCTV systems to digital networked solutions Potential for strong growth

Fast growing Video segments Education Retail Office Transport and logistics Law enforcement Banking Penitentiaries Public areas Industrial applications

Markets in transition Security market IT market

Investing for the future Intensive R&D agenda 15%-20% of sales reinvested in R & D Product innovations to meet real business needs 7th generation of ETRAX Fourth generation of network cameras and video servers in 2003

On track for profitable growth A clear focus on customers and selected verticals Increased marketing activities A growing number of strategic partnerships

Financial performance January-September 2002

Highlights: nine months 2002 Increased activities Stable sales trend Continuous growth for Video; up 31 percent

Sales Q Sales by Product Group 44% Video Print43% Store 6% Scan 2% Access 1% Other 4% Sales by region 22% Asia Americas EMEA 29% 42%

Sales Q Ongoing operations Sales 168 MSEK (155) Growth and stable sales despite weak market conditions

Video – Sales Q % of Axis´ total sales Increased demand for network cameras and video servers New agreements Pro forma Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q

New agreements Q Network cameras to secure homes across France Video surveillance of public transports in Italy Security solution to New Zealand penitentiary French bank increases security with network cameras

Print – Sales Q % of Axis´ total sales Stabilized despite cautious IT-market Q1Q2Q3Q4Q1Q2Q3Q Q1 Pro forma 2000 Q2Q

EBIT by Quarter Continuous profitable development Q3: operating margin 7%; profit margin 10% Pro forma 2000 Q4Q1Q2Q3Q4Q1Q2Q Q1Q2Q

Market trends Markets: cautious and difficult to predict Signs of increased activity Continued growth for Video Growing interest in surveillance and security Increasingly large investments Increasingly professional applications

Outlook Q4, 2002 Stable sales trend despite cautious IT- market and generally weak business environment Goal of profitable development remains unchanged