Strong growth driven by extensive network video projects January- September 2007 Ray Mauritsson, CEO Fredrik Sjöstrand, CFO

This is Axis Q Axis product portfolio The network video market Total cost of owership (TCO) Today's agenda

This is Axis Founded in 1984 An IT-company driving the network video market Worldwide presence in 18 countries, 523 employees* Product areas, Network Video Solutions Network Print Servers Net sales in 2006: MSEK (US$163M) Global partnerships through distributors, resellers and system integrators Listed on OMX Nordic Exchange, Stockholm Large Cap and Information, Technology exchanges * Q3, 2007

Global distribution and sales Distributors ResellersSystem integrators End user

The market’s broadest video portfolio Fixed camerasDomes & PTZ’sVideo serversManagement SW AXIS 243Q AXIS 243SA AXIS 241QA AXIS 241Q AXIS 241S AXIS 247S AXIS 240Q AXIS 291 1U Rack AXIS 3U Rack AXIS Camera Station AXIS Camera Mgmt ADP > 500 Partners AXIS 262+ NVR AXIS 223M AXIS 221 AXIS 225FD AXIS 216MFD/216MFD-V AXIS 211M AXIS 216FD/216FD-V AXIS 211W AXIS 211/211A AXIS 210/210A AXIS 209FD-R AXIS 209FD/209MFD AXIS 207MW AXIS 207/207W AXIS 206 AXIS 233D AXIS 232D+ AXIS 231D+ AXIS 214 PTZ AXIS 213 PTZ AXIS 215 PTZ AXIS 212 PTZ Accessories

Total net sales (841) MSEK Total growth + 42% Stable growth within video + 48% High activity in the market  Adding orders to previously announced installations Highlights January-September, 2007

Sales January - September, 2007 Total sales  MSEK (841)  Growth 42%  Currency effects - 61 MSEK Video sales  MSEK (738)  Growth 48% MSEK Growth

Operating expenses Q3, 2007 Q2, 2007 Q1, 2007 Q3, 2006 Selling and marketing costs Administrative costs Research and development costs Total costs

EBIT and Gross margin Gross margin  54.5% (55.3%) Operating margin  23.1% (22.7%) Profit margin  23.0% (22.6%) MSEKMargin Q3 2007

Sales in the product areas Q Video + 54% Print & Scan - 11% Other +37 % Growth in product areas

Sales in the regions Q3, 2007 Americas EMEA Asia

Latest news Installations in Casino in US, August AXIS open office in India, August Axis cameras featured in Telia HemKoll service, September Product launches  AXIS 209MFD  AXIS 209FD  AXIS 211 W  Active Tampering Alarm

Intelligent Video Active Camera Tampering Detects re-direction Detects blocking Detects covering and spray-painting Detects out of focus  More information

The first million One million network cameras delivered

Network camera penetration by country Source: World Market for Video Surveillance Equipment 2006 Ed, IMS Research Highest market penetration

Customer segments Banking & Finance Education Government Industrial Retail Transportation

Total cost of ownership (TCO) Research conducted by an independent research firm  Develop a Total Cost of Ownership (TCO) comparison of video surveillance systems - Analog vs. Digital  Installation in a single school building with 30 indoor and 10 outdoor cameras  3 steps – Develop baseline operational scenario – Collect cost data – Compile finding Conclusion  Total cost of ownership is lower in an IP-based installation  The network system is scalable and more flexible  More information at 54% 6% 21% 19% 34% 16% 25%

Growth of the global market Growth 10% CCTV Growth 40% Network Video

Future outlook, Axis goals Focused product range  Aggressive product development  Intelligent solutions Focused business model  Loyal partnerships Focused company Market leadership Professional Network Video