... M A K E S Y O U R N E T W O R K S M A R T E R Interim Report Jan - Mar 2003 CEO Ray Mauritsson CFO Jörgen Lindquist.

. . . M A K E S Y O U R N E T W O R K S M A R T E R

Interim ReportJan - Mar 2003

CEO Ray Mauritsson

CFO Jörgen Lindquist

. . . M A K E S Y O U R N E T W O R K S M A R T E R

Continuous growth for Video despite cautious market

Financial Performance

Net sales: SEK 153 M (164)¬ Currency effects impacted

negatively: SEK 18 M

Operating profit: SEK 0.6 M (11)

Highlights Q1

Continued strong development within Video

Proactive market efforts Cautious market conditions

Intelligent Network Solutions

Video Solutions

Network Cameras Video Servers

52% 40%

8%

Network Printing

Other Network

Scan & Store Technology sales Wireless Access

Leading technology

Proven technology and intensive R&D In-house developed chip technology

for image processing and network connectivity

19 years of network experience Open standards only More than 120 developer partners

A growing Video market

Global market leader Significant growth potential

¬ Growing interest in surveillance and security

¬ Shift from analog to digital solutions

¬ New technical possibilities

Focus on customer segments

Retail

Bank Transportation

Government Education

Industrial

Financial Performance

Net sales: SEK 153 M (164)¬ Currency effects impacted

negatively: SEK 18 M Operating profit: SEK 0.6 M (11) Continuous strong balance sheet

Sales Q1

Sales by Region

24%

28%

48%

Asia

Americas

EMEA

Sales by Product Group

52%Print 40%

Scan & Store 6%

Access and other 2%

Video

Sales by quarter

Continued weak market Video grew by 18%

compared to Q1 2002 Weak development

within Print

0

20

40

60

80

100

120

140

160

180

Mkr

Q1 Q2 Q3

2002

Q4 Q1

200320032002

Video

Other

EBIT by quarter

Gross margin: 53.7% (58.7)

Operating margin: 0.4% (6.5)

Profit margin: 1.7% (8.3)

0

2

4

6

8

10

12

14

Q1 -02 Q2 -02 Q3 -02 Q4 -02 Q1 -03

Mkr

Investing for the future

Intensive R&D agenda¬ Estimated 15% - 20%

reinvested in R&D ¬ Video prioritized in 2003¬ Several new products

Proactive market efforts¬ Focus on customer segments¬ New partnerships

Market trends

Signs of increased activities Uncertain global economic

development

Outlook 2003

Weak IT investments Long term growth potential for Video Strengthened positions Continued profitable development