1. www.axis.com Weak growth ended 2008 January- December 2008 Ray Mauritsson, CEO & President Fredrik Sjöstrand, CFO

2. www.axis.com This is Axis >Founded in 1984, 25 years ago >IT company driving the network video market >Worldwide presence in more than 20 countries, 716 employees* >Product areas: –Network Video Solutions –Network Print Servers >Global partnerships through distributors, resellers and system integrators >Listed on NASDAQ OMX, Stockholm under the ticker AXIS * December, 31

3. www.axis.com Today's agenda >Financials –Sales –Operating expenses –Currency effects >Market & Product update >Outlook >Questions & Answers

4. www.axis.com Sales January – December 2008 >Total sales – 1 975 MSEK (1 671) –Growth 18% –Currency effects - 2 MSEK >Video sales –1 885 MSEK (1 530) –Growth 23% –Growth 23% (local currency) MSEK Growth

5. www.axis.com Operating expenses, Q1, 2007- Q4, 2008 MSEK

6. www.axis.com MSEK Margin EBIT and Gross margin* >Gross margin* –53.8 % (55.2%) >Operating margin –9.9% (21.8%) >Profit margin –9.8% (21.8%) *Q4 2008

7. www.axis.com Sales in the product areas* *Q4 2008

8. www.axis.com AsiaEMEAAmericas 40 % 49 % 11 % Sales in the regions* *Q4 2008

9. www.axis.com Currency effects on total sales by region MSEK

10. www.axis.com Highlights, January – December 2008 >New product generation –Innovative products with H.264 –ONVIF, Global industry standard for the interface of network video products >Development of Partner program –24,000* Channel Partners, + 10,000 –620 ADP (Applications Development) partners, +170 >Global expansion –Opening of three new offices –716 employees, +152 >Successful customer installations –Especially high interest in city surveillance and transportation

11. www.axis.com Axis new product generation >The new generation of Axis network video products are well received on the market. >Including H.264 compression standard >More cost-efficient system solutions >Higher image quality and optimized video streams >Higher performance and more intelligence

12. www.axis.com AXIS Q1755 >Newly launched HDTV network camera –High image quality –Autofocus –Day & Night >Strøget, pedestrian street in Copenhagen –Initiative from the police and Copenhagen Community –Crime prevention & safe city

13. www.axis.com Market shares for video surveillance equip. in 2007 RankSupplier 2007 1Pelco 2Panasonic (PSS) 3Bosch Security Systems 4Honeywell 5GE Security 6Axis Communications 7Tyco Fire & Security 8Samsung Electronics 9Dedicated Micros 10CBC Others Source: IMS Research 2008

14. www.axis.com Market shares for all cameras in 2007 RankSupplier 2007 1Panasonic (PSS) 2Pelco 3Axis Communications 4Bosch Security Systems 5Sony 6Samsung Electronics 7Samsung Techwin 8Honeywell 9GE Security 10Tyco Fire & Security Others Source: IMS Research 2008

15. www.axis.com RankSupplier 2007Share 1Axis Communications33,5% 2Sony 3Panasonic (PCC) 4Mobotix 5Panasonic (PSS) 6D-Link 7Bosch Security Systems 8Vivotek 9ACTi Corporation 10DVTel O Others Market shares for network cameras in 2007 Source: IMS Research 2008

16. www.axis.com The market situation today Short term perspective >Network video growth impacted by financial turmoil >Difficult to predict the market development >Continued expansion of the product portfolio and the partner program Long term perspective >Continued high growth potential for network video >Axis’ goals remain unchanged

17. www.axis.com What makes the difference Focus Partner networkGlobal reach

18. www.axis.com Questions & Answers Q&A