AXIS Communications - a world of intelligent networks January-June 2002 CEO Peter Ragnarsson CFO Jörgen Lindquist

H Continued profitability

Financial performance H1 Profitability and Positive Cash Flow… Operating profit improved by SEK 110 M (comparable units) Positive EBIT margin for the rolling 12-month period: 3.9 % Cash flow from operating activities amounted to SEK 9 M

Highlights H Continuous growth for Video; up 34 percent Additional agreements with Honeywell and Canon Several new products

Sales Q Sales by Product Group 44%Video Print43% Store 4% Scan 2% Access 2% Other 5% Branded vs. OEM-sales 25%OEM Branded 75%

Sales Q Ongoing operations Sales 171 MSEK (168) Stable sales despite weak market conditions

Video – Sales Q Continued growth New products New agreements Pro forma 2000 Q1Q2Q3Q4Q1Q2Q3Q Q Q2

Print – Sales Q Weak market conditions New wireless print server supporting b Q1Q2Q3Q4Q1Q2Q3Q Q Pro forma 2000 Q2

EBIT by Quarter Four consecutive quarters with positive EBIT Operating margin 5.5 % Pro forma 2000 Q4Q1Q2Q3Q4Q1Q2Q Q Q2

Ongoing operations, MSEK Sales per Quarter

Gross margin MSEK

Market trends Signs of increased activity in cautious IT-market Continued growth for Video Growing interest in surveillance and security Increasingly large investments Increasingly professional applications

Outlook H2, 2002 Continued weakness in the economy still impacts several markets in the beginning of H2 Goal of profitable development remains

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