1. NORDIC SEMICONDUCTOR ASA Q3 - 2004 PRESENTATION Svenn-Tore Larsen CEO 27th of October, 2004

2. - 1 - Nordic Semiconductor 27-10-2004 AGENDA Financial Update Sales Update Product Division Status

3. - 2 - Nordic Semiconductor 27-10-2004 KEY FIGURES Revenues Operating profit Earnings before taxes (EBT) Earnings per share (28% tax) Bookings Backlog Q3, 2004 64,4 10,2 8,6 0,19 74,6 95,6 Q3, 2003 28,7 -3,4 -3,0 (-0,36) 27,2 48,7 Change 124% - 174% 96%

4. - 3 - Nordic Semiconductor 27-10-2004 PROFIT AND LOSS ACCOUNT MNOK COMPONENTS Std. Components SoC Components CONSULTING SoC Projects Data Converter Other operating revenue Total operating revenue Cost of goods sold Direct project costs Personnel expenses (1) Depreciation Other operating expenses EBIT Net financial items EBT Q3, 2004 39,1 6,7 10,2 8,4 0,0 64,4 23,4 4,9 17,7 0,6 7,6 10,2 -1,6 8,6 Q3, 2003 7,2 10,1 7,9 3,5 0.0 28,7 11,0 1,1 10,0 1,2 8,8 -3,4 0,4 -3,0 2003 16,2 24,5 41,5 9,0 0.1 91,3 22,5 17,6 52.4 5,9 28.0 -35,1 2,0 -33,0 Change Q3-Q3 5,4 X -34% 29% 140% - 124% 2,1 X 4,9 X 77% -50% -14% - 28,0 24,1 39,6 18,6 0.0 110,3 34,2 8,8 51,0 5,3 29,4 -18,4 1,8 -16,6 2002 (1) 4,8 MNOK employee option tax incl.

5. - 4 - Nordic Semiconductor 27-10-2004 BALANCE SHEET Fixed and long term assets Inventories Accounts receivables Other receivables Cash and cash equivalents Total assets Equity Long term liabilities Current liabilities Sum equity and liabilities MNOKQ3 2004 24,8 16,8 39,3 3,3 50,4 134,6 106,4 0,0 28,2 134,6 2003 32,7 15,3 18,7 2,0 37,1 105,8 79,4 2,0 24,4 105,8 2002 32.8 11.6 13.2 4.8 53.6 116.0 91.6 2.0 22.4 116.0

6. - 5 - Nordic Semiconductor 27-10-2004 MAIN SHAREHOLDERS/STOCK OPTIONS Arne Græe/Velox9,9% Odin Funds9,2% Ferd Invest 6,3% Delphi Funds5,8% Fidelity5,5% Edvin Austbø5,1% Tore Engebretsen4,4% Nordea Funds3,7% Arne Kristian Mæland3,5% Foreign investors (26 shareholders)12,6% Employees4,6% Board members10,7% Stock options to board members0,7% Stock options to CEO2,6% Stock options to employees8,5% Total number of shareholders: 697 30. Sept 2004

7. - 6 - Nordic Semiconductor 27-10-2004 STRONG GROWTH IN REVENUE AND POSITIVE RESULT Quarterly Operating Income And Earnings MNOK Operating income Earnings before taxes

8. - 7 - Nordic Semiconductor 27-10-2004 AGENDA Financial Update Sales Update Product Division Status

9. - 8 - Nordic Semiconductor 27-10-2004 GLOBAL CHIP SALES GROWTH MODERATES Slight Decline In Capacity Utilization Source:World Semiconductor Trade Statistics / SIA Monthly WW Semiconductor Sales (BUSD)

10. - 9 - Nordic Semiconductor 27-10-2004 CURRENT GROWTH ACROSS ALL REGIONS Semiconductor Market Per Region Source:World Semiconductor Trade Statistics / SIA Monthly WW Semiconductor Sales (BUSD) Asia-Pacific Japan Europe Americas

11. - 10 - Nordic Semiconductor 27-10-2004 RECORD REVENUE, BOOKING AND BACKLOG Quarterly Operating Income, Booking And Backlog MNOK

12. - 11 - Nordic Semiconductor 27-10-2004 STANDARD COMPONENTS DOMINATE REVENUE Revenue Split 2002 - 3Qs- 2004 (1) SoC Projects excluding components sold (1)

13. - 12 - Nordic Semiconductor 27-10-2004 GROWTH DRIVEN BY STANDARD COMPONENTS Summary of Sales Status Strong revenues Record revenue of 64.4 MNOK Standard Component Revenues of 39.1 MNOK Quarter to quarter growth of 17% Solid Booking Backlog is 95.6 MNOK Book/Bill : 1.16

14. - 13 - Nordic Semiconductor 27-10-2004 AGENDA Financial Update Sales Update Product Division Status

15. - 14 - Nordic Semiconductor 27-10-2004 HIGH DEMAND FOR OUR 2.4GHz PRODUCTS AND WE EXPECT FURTHER GROWTH IN 4th QUARTER Standard Components Status Quarterly growth: Q2- 2004 to Q3- 2004; 20% Revenue/Booking 39.1 Revenue 38.1 MNOK Booking Book/Bill: 0.97 Moderate Book to Bill ratio is not a sign of reduced growth in Q4 Short lead time orders have been placed to fulfill extra Christmas demand Large orders place early October for fulfillment in Q4 New customers’ products entering marketplace 261 new evaluation kits sold this quarter Next generation products on schedule and will launch end of year

16. - 15 - Nordic Semiconductor 27-10-2004 GAMEPADS DOMINATES REVENUES THIS YEAR WITH LOGITECH AND MUTIPLE OTHER MANUFACTURERS “Our initial choice of going with Nordic VLSI was based on the excellence of their products and their commitment to ensuring Logitech a successful product development phase, ” said Paul Loughnane, Hardware Engineer Manager of Logitech's Interactive Entertainment Division. “We have been very satisfied; Nordic VLSI’s commitment to Logitech is strong and their support never stops impressing me. The devices have been very easy to work with, and we have been able to reach an optimal solution for our products.”

17. - 16 - Nordic Semiconductor 27-10-2004 NEXT YEAR WE WILL SIGNIFICANTLY PENETRATE INTO WIRELESS DESKTOPS,KEYBOARDS, AND MICE High end Bluetooth interoperability 150$ + Multimedia Long range Proprietary nRF24XX $80 - 100 Standard wireless mouse/keyboard 27MHz $49 -70 Wired mouse/keyboard < $30 95% 4% 1% <<1% Share of total Desktop Market Value entry point Convergence entry Desktop market

18. - 17 - Nordic Semiconductor 27-10-2004 POWER CONSUMPTION AND PRICE KEY PARAMETERS TO WIN THE MARKET Current Situation Power Consumption Cost All major players compete on power consumption for wireless keyboard mouse Key optics player Agilent has invested millions of dollars in developing an extremely low power optical sensor. This further drives the need for low a power radio solution Price/Cost will also be essential driver for volume in this market both for high end products, but also to see expansion into low end products PP Matters Bluetooth (1.1/1.2) Nordic ZigBee 27Mhz Cypress 100X

19. - 18 - Nordic Semiconductor 27-10-2004 nRF2401 OUTPERFORMS THE CYPRESS IN AVERAGE CURRENT CONSUMPTION IN MOUSE/KEYBOARD APP. 34.2mA @ 2.7V nRF2401 CYWUSB6934 128uA @ 1.9V Assumptions: Average current when transmitting 5 bytes every 10 ms (protocol + data) * Startup and turnaround times from TX-RX-TX will influence calculations. It is assumed that RX and TX times are equal for handshake protocol Time taken to transmit or receive 5 bytes (40bits): Cypress @ 15.625kbit/s =2.7mS Nordic @ 1Mbit/s = 40us Peak current TX/RX @ 0dBm POUT: Cypress 69mA/57.7mA* Nordic 13/19mA * source CYWUSB6934 datasheet rev *E dated Dec 15th 2003 ** Cypress best blocking/interferer mode Nordic offers 267X lower current consumption and 379X lower power consumption on average compared to Cypress 15.625kbit/s solution for typical mouse/ keyboard application. Current / voltage

20. - 19 - Nordic Semiconductor 27-10-2004 mA 39 Nordic nRF2401 Cypress 5 IR + MCU CYWUSB6934 DOMINATES AVERAGE CURRENT CONSUMPTION IN MOUSE SYSTEM - SEVERELY IMPACTING BATTERY LIFETIME CYWUSB6934 IR + MCU Assumptions: Average current of IR sensor/LED+MCU in mouse is approx 5mA when active Nordic RF active average 128uA Cypress RF active average 34mA

21. - 20 - Nordic Semiconductor 27-10-2004 WE ARE TAKING QUANTUM LEAPS IN COST REDUCTION Example the nRF2401 Cost Index at start of year

22. - 21 - Nordic Semiconductor 27-10-2004 NORDICS SOLUTIONS CHOSEN FOR NEW LOGITECH MOUSE The New Standard in Notebook Mice, V500 Logitech quote: “The Logitech V500 Cordless Notebook Mouse is arguably the most technologically advanced notebook mouse on the market. It is loaded with innovations — an expandable chassis, a touch-sensitive solid state scrolling panel, and 2.4 GHz wireless technology — all wrapped up in a sleek design that will turn heads”. (1) ”The timely introduction of the Logitech V500 Cordless Notebook Mouse could not have happened without our close collaboration with Nordic Semiconductor,” said Ashish Arora, Logitech director of marketing for Retail Pointing Devices. ”Nordic has has been an exemplary technology partner and a highly responsive supplier. The Nordic team has provided us with cost- effective technology, in high volume, that ensures that the V500 mouse will meet or exceed the performance expectations of our customers.” (2) (1) Source: www.logitech.com (2) Source: Nordic Semiconductor Press Release

23. - 22 - Nordic Semiconductor 27-10-2004 TO ZIGBEE OR NOT …. Pro’s Con’s It is an open standard co-defined by multiple companies Good for connectivity between different vendors equipment Multiple vendors guarantee that the customers have more choice and a not stuck with one vendor A multi purpose device can be used for any applications.. Contains a number of negative tradeoff after years of fighting to set the final standard Most products is only a direct link between a companies own products Significantly increase the competition between the players and all they can compete on is price..but it will not be a best fit device for any application..cost, complexity….

24. - 23 - Nordic Semiconductor 27-10-2004 STABLE ACTIVITY OF CUSTOMER PROJECTS SoC Project Status Two major projects taped out Component deliveries expected in 2005 Two new projects started Value added with Nordic IP RF-ASIC program released, positive feedback from marked Custom nRF components program for customers W.W. Expect first major design-win in early 2005

25. - 24 - Nordic Semiconductor 27-10-2004 SLOW QUARTER FOR SOC COMPONENTS SoC Components Status On track for 8 new component releases into volume production during 2004 Contract on 5 new components during 2005, 3 in 2006 Good component booking for delivery in coming quarters

26. - 25 - Nordic Semiconductor 27-10-2004 GOOD QUARTER FOR DATA CONVERTER IP Record backlog and off-the-shelf product sales resulted in a strong quarter revenue Reorganization of sales team Additional Sales Engineer Next generation 0.13um product development on schedule First products for release Q1 2005 Driven by key customers in target markets One customer has signed up - several good prospects

27. - 26 - Nordic Semiconductor 27-10-2004 SOLIDIFIED OUR POSITION AS LEADING SEMICONDUCTOR VENDOR World class in distribution New agreement with Memec for Europe Established Nordic and Nordic Semiconductor as a brand Strong relationships with subcontractors ensures a safe and solid supply chain A tight grip on a fast growing market still in its infancy Customer portfolio; world leading brands Business in 2005 secured by design-wins already in place