Comrod Communication ASA Q2 Presentation Stavanger, 27th. August 2007 Eirik S. Larsen, CEO Kari Duestad, CFO Ole Gunnar Fjelde, EVP and MD Comrod AS

2 Agenda I.Key points II.Company overview III.Q2 Financials IV.Summary

3 Key points Q2  Continued growth in turnover  Important new contracts secured:  New contract on antennas to a major NATO country in May  New contract on masts to the US army in May  New contract with US based radio producer on antennas in June  New contract with US based radio producer on antennas in July  Good market development in all business units, high tendering activity  Preparing for higher production capacities in second half of 2007  Integration process run as planned, positive contribution from all entities

4 Agenda I.Key points II.Company overview III.Q2 Financials IV.Summary

5  A previous business division of Hexagon  Public listed company on Oslo Stock Exchange  Headquarter close to Stavanger  Offices and production facilities in Tau, Stavanger, Oslo and St Amand Les Eaux in France.  170 employees, whereof 86 in France  Comrod develops, manufactures and markets masts, antennas, industrial products and power supplies. Approximately 80% of sales is to the defense communication market  Comrod holds leading global market positions within antennas and masts for the defence market Comrod Communicaton ASA – Company profile

6 Masts The Business Areas Industrial products Power supply Product illustration Products Revenues and EBITDA 2006 Type of clients  NOKm 27,2 / NOKm -1,1  OEM, defense organizations  Telescopic, sleeve, man-pack, manual and motorized versions Key customers  In defense market, key clients include Thales, DGA and US Army  NOKm 26,2 / NOKm 2,1  Utilities, industrial companies  Insulating products such as insulators, insulating poles and structural composites which are custom designed products  Defense (10% of sales) and utility and energy industry (90 % of sales). Key clients include Siemens and SCNF  NOKm 14,9 / NOKm 2,8  Defense organizations  Battery systems, technology rights acquired from Eltek ASA with exclusive rights in the defense market  In the defense market, key clients include Kongsberg Group and FMV Sweden Manufacturing  France / Norway  France  Outsourced to plants in Norway, Poland and China Antennas  NOKm 129,3 / NOKm25,5  OEM, defense organizations, commercial vessels  HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems  Defense (80 % of sales) and maritime industry (20 % of sales). Key clients include ITT, Harris, Thales and Rhode & Schwarz  Norway / France Source: Comrod Communication

7  Product range include HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems  Products are manufactured at in-house manufacturing facilities  Key attractive features of products -Superior quality, proven record -Meets the toughest demands -Flexibility Commercial vessels Navy Bowman Vehicle Collection HF MHz, VHF MHz, UHF MHZ Overview of products Business Area – Antennas (58% of revenue) Man-pack VHF 30-88MHz Handheld VHF 30-88MHz

8 Market : Antennas  Comrod has well established leading market positions in most main EU countries and now sells to more than 60 countries  The big new contracts for the US is an important step in becoming a major player also in the US market  Total market is increasing due to new and more advanced radio communication technologies being introduced and applied

9 Overview of products Business Area – Masts (13 % of revenue)  Masts include telescopic, sleeve, man-pack, manual and motorized versions  Products are manufactured at in-house manufacturing facilities  Key attractive features of products -Easy maintenance -Standard as well as tailor made versions -Advanced control for unmanned use Surveillance Omaha Beach LOS (land of sight) Advanced control Unmanned use

10 Market : Masts  New contract won in June for deliveries of 30m high tactical masts to the US Army.  Mast segment is increasing due to increasing use of high band width communication where LOS systems are applied

11  Include battery chargers and power supply  Manufacturing outsourced to companies in Norway, Poland and China  Key attractive features of products -Demanding applications -Tailor made solutions -Both Ni Cad and Li-Ion batteries Double Man-pack charger Standard power supply Combined charger and power supply 1 position vehicle charger Overview of products Product area – Power supply (16 % of revenue)

12 Market: Power Supply  Market openings into the existing sales networks of Comrod and Lerc  High activity on new tenders  Comrod in unique technology position.

13  Include insulating products such as insulators, insulating poles for railroad and utilities, offshore products and custom designed structural components.  Products are manufactured at in-house manufacturing facilities  Key attractive features of products -Tailor-made solutions -Niche markets -Extensively tested and quality assured Offshore applications Railroad applicationsInsulators Foamed pipe Overview of products Product area – Industrial products (13 % of revenue)

14 Market : Industrial Products  Growth within Offshore Application Products, good margins.  Stable market for Other Insulator Products.

15 UMS Norway – Unmanned Systems  Development and sales of UAVs (Unmanned Aerial Vehicles)  First “scaled down” prototype successfully tested from March this year  Full scale prototype to be airborne within this year  5 m wing span  5m fuselage length  Speed: 300 km/h  Flying time: 7 -9 hours  Targeting the rapidly increasing demand for tactical UAVs in the defense and civil markets

16 Agenda I.Key points II.Company overview III.Q2 Financials IV.Summary

17 Financial performance Q2  Substantial growth in turnover  Growth in EBIT  EBIT margin down  Good development in the Power supply business area  Good development in the Mast business area

18 Q2 financials

19 Segment Information : Turnover per Business Area

20 Turnover per segment

21 Cash Flow Statement

22 Balance sheet

23 Capital structure  91 Mill NOK long term bank loan  10 mill NOK overdraft protection  Lerc: local financing of working capital factoring agreement

24 Agenda I.Key points II.Company overview III.Q2 Financials IV.Summary

25 Summary and outlook 2007  New contracts strengthening our position with the major radio producers.  Positive market outlook for all business areas  Integration process in good progress – positive and dedicated efforts from all organizational units  Continued growth expected in 2007 and beyond

26 Q&A

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