1. M A K E Y O U R N E T W O R K S M A R T E R Video growth and profitable development First half of 2004 Ray Mauritsson, CEO

2. Axis’ two main product areas Network Video Products  Worldwide #1 position  Axis’ largest product area, 69% of sales  An installed base of more than 300,000 units Network Print Servers  Worldwide #2 position  27% of Axis’ sales  An installed base of more than 2,000,000 units

3. Highlights: first half, 2004  Continued growth for Video  Improved gross margins  Profitability  10 new products launched

4. Financial performance: first half, 2004  Net sales: SEK 320 M (305)  Currency effects had a negative impact of SEK 19 M  Operating profit: SEK 2 M (loss: 4)

5. Highlights: Q2, 2004  Strong growth within Video, + 36%  Restrained sales for Print  New strategic agreements

6. Sales by quarter Q2:  Continued strong growth in Video MSEK 2004 Video Other 2003

7. EBIT by quarter Q2:  Gross margin: 51.7% (52.8)  Operating margin: 4.7% (-2.8)

8. Gross margin by quarter

9. Sales: Q2, 2004 69% Print 27% Other 4% Video 19% 33% 48% Asia Americas EMEA Sales by Product GroupSales by Region

10. Benefits of network video  Remote access to video from any location  Low start-up and operating costs  Flexible and scalable solutions based on open standards ¬ Integration possibilities A technology shift driving growth

11. New generation video products Network Cameras  AXIS 210  AXIS 211  AXIS 206M Megapixel Network Camera  AXIS 206W Wireless Network Camera  AXIS 231D Network Dome Camera Network Video Decoder  AXIS 292 Video Servers  AXIS 241S  AXIS 241Q Software solutions  AXIS Camera Station

12. New generation print servers  Primarily targeted at small businesses and home users  A key addition to Axis’ already broad market offering Axis OfficeBasic USB Wireless

13. Strategic agreements  Axis chosen as strategic supplier of network video solutions for Honeywell  Axis begins global IP-Surveillance partnership with Securitas

14. Outlook 2004  Continued strong growth potential for Video  Further product launches ahead  Restrained development for Print  Goal of profitable growth remains unchanged