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

Interim ReportJanuary - June 2003

CEO Ray Mauritsson

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

Continued restrained market affects sales

Financial Performance

Net sales: SEK 305 M (335)¬ Currency effects impacted

negatively: SEK 40 M Operating loss: SEK -4 M (18)

Sales by quarter

Q2: Restrained market

conditions Continued growth in Video Weak development

within Print, Scan & Store

0

20

40

60

80

100

120

140

160

180

Mkr

Q1 Q2 Q3 Q4 Q1

2003

Video

Other

Q2

2002

EBIT by quarter

-10

-5

0

5

10

15

20

25

30

Q1 -02

Q2 -02

Q3 -02

Q4 -02

Q1 -03

Q2 -03

Mkr

Q2: Gross margin:

52.8% (56.6) Operating margin:

-2.8% (4.4) Profit margin:

-0.4% (5.4)

Business development Q2

Continued growth for Video New agreements in prioritized

segments Additional developer partners; total

145 Aggressive product road map

Sales Q2

Sales by Region

24%

27%

49%

Asia

Americas

EMEA

Sales by Product Group

55%Print 38%

Scan & Store 4%

Access and other 3%

Video

A growing Video market

Global market leader A base of more than

200,000 units installed Significant growth potential

¬ Growing interest in surveillance and security

¬ Shift from analog to digital solutions

¬ New technical possibilities

Technology evolution

CCTV

IP

DVRDVR

2000 2005 2010

Three stages:

1. CCTV: analog

2. DVR: digital capture

3. IP: digital networking

3. IP: digital networking

Revised financial targets

A growth target of 30 percent in sales and a pre-tax profit margin of 10-15 percent by 2005 at the latest.

Outlook 2003

Weak IT investments Unchanged long term growth

potential for Video Goal of positive operating result for

the full year 2003