Annual Repor t 2000

TANDBERGTelevision

Europe, Middle East, AfricaAdvent UKAntena Servizi ItalyAntenna Hungaria HungaryAPTN UKArab Radio & TV JordanArcade NetherlandsARD GermanyATV TurkeyAVS GermanyBBC UKBBC Prime UKBezeq IsraelBotswana Television BotswanaBT UKBSkyB UKCable & Wireless UKCanal + EuropeCanal Digital ScandinaviaCanal France International FranceCasema NetherlandsCasTel NetherlandsChannel 5 UKCML UKCyprus Telecom CyprusDanmark Radio DenmarkDBS IsraelDetecon GermanyDeutsche Telekom GermanyDeutsche Welle GermanyDigita FinlandDigital Space IrelandElettronica Industriale ItalyEBU SwitzerlandEsken TV TurkeyEuronews FranceEutelsat FranceFlextech UKFrance 3 FranceFrance Telecom FranceGilat IsraelGlobecast Northern Europe UKHRT CroatiaIHA TurkeyIrdeto NetherlandsIRN UKKinnevik / MTG group SwedenKPN NetherlandsLBC LebanonLink Research UKMadritel SpaniaMatav IsraelMediakabel NetherlandsMesaj TV TurkeyMIR Teleport RussiaMNET South AfricaMTV Networks Europe UKMultichoice South AfricaNDS UKNEC Europe UKNilesat EgyptNTL UKNTV RussiaOpen Interactive UKOrbit Saudi ArabiaORF AustriaORT RussiaPace UKPagi Poland

Polsat PolandRadio France International FranceRAI ItalyREN-TV RussiaRetevision SpainReuters Television UKRTE IrelandRTL GermanyRTL2 GermanyRTV SloveniaSAT-1 GermanySatlink IsraelSES LuxembourgShowtime UKSiemens GermanySTG SwitzerlandStjarn-TV SwedenStofa DenmarkStream ItalySwisscom SwitzerlandSyned GreeceTelecom Danmark DenmarkTeleDanmark Cable TV DenmarkTelefonica SpainTelemedia South AfricaTele + ItalyTelespazio ItalyTeracom SwedenTDF FranceTeleGreenland GreenlandTelenor Satellite Services EuropeTelewest UKTelewizja Polska PolandTelia Infomedia TV SwedenTelia Networks SwedenThomcast FranceThomson Broadcast Systems FranceTNT RussiaTV2 NorwayTV5 FranceTV-Cabo PortugalTVN PolandUPC NetherlandsVideopole FranceWahlberg & Selin SwedenWTN UKYLE FinlandZDF Germany

Asia PacificABC AustraliaABS ChinaAsia Television Hong KongAustar AustraliaBCL New ZealandBeijing Telecom ChinaCCTV ChinaChannel 7 AustraliaChannel 9 AustraliaChannel 11 ThailandChina Telecom ChinaCNBC Asia Hong KongCTM MacauDatastream Technology BruneiDoordarshan IndiaEssel Shyam IndiaFoxTel AustraliaKBS KoreaKDD Japan

NEC JapanNetwork Ten AustraliaOptus Comms AustraliaOptus Vision AustraliaPTT IndonesiaPTV TaiwanRTB BruneiSARFT/INC ChinaSatelindo IndonesiaSBS AustraliaShaanxi Province ChinaShanghai Cable Network ChinaShanghai Telecom ChinaShin Satellite ThailandSingapore Technology SingaporeSKY AustraliaSky NZ New ZealandSky PerfecTV JapanStar TV Hong KongSumitomo JapanSunTV IndiaTelecom Malaysia MalaysiaTeleport SingaporeTelstra AustraliaTV NZ New ZealandTV Today IndiaTVB Hong KongTzu Chi Television TaiwanUBC ThailandUCOM ThailandVietnam TV Vietnam

The AmericasAscent Network Services USAAzteca Americas USABellSouth USACanadian Broadcasting Corporation CanadaCaracol ColumbiaCisco Systems USAEchostar USAFox USAHarmonic USAHeartland Video USAIBM USAIDB USAInnova MexicoIntelsat USAMRC USANBC USANetSat BrazilNTU USAPanamsat USAPramer ArgentinaRCN ColumbiaSER-SAT ArgentinaSinclair Broadcasting USASky LA USATelevisa MexicoTribune Broadcasting USATurner Broadcasting USATV Bandeirantes BrazilTV Globo BrazilUSA Broadcasting USAVyvx USAWarner Brothers USAWolf Coach USAZenith USA

Major Customers

This is TANDBERG Television 1

Key Financial Figures 2

Foreword by the President and Chief Executive Officer 3

Report of the Board of Directors 4 - 6

Profit and Loss Account 7

Balance Sheet 8

Cash Flow Analysis 9

Notes to the Financial Statements 10 - 16

Auditor’s Statement 17

Shares and Shareholders 19 - 20

Business Overview - Building Core Business 21 - 30

Looking Forward 31 - 32

Contents

Annual Report 20001

The company’s solutions enable the delivery of video, audio

and data across various networks including cable, satellite,

terrestrial, IP and telecom. TANDBERG Television is a recognised

innovator in digital broadcasting and its broad technology

offering is complimented with the highest quality systems

integration and customer service.

Headquartered in Norway, TANDBERG Television employs 615

highly skilled and knowledgeable people, and has sales and

24-hour support and monitoring operations in Asia, Australia,

Europe and the USA. The company’s customers include major

broadcasters, network operators and convergence and media

players around the world.

TANDBERG Television is one of the industry leaders in the provision

of open infrastructure solutions to the global broadcast industry.

This is TANDBERG Television

Annual Report 2000 2

Key Financial Figures

NOK 1,000 2000 1999 1998 1997

Operating revenue 1,187,574 483,503 274,616 233,862

Operating profit (90,576) 8,383 57,809 53,647

Operating margin -8% 2% 21% 23%

Profit before tax (68,374) 39,084 80,621 59,136

Net profit for the year (73,471) 25,003 57,835 40,486

Earnings per share, fully diluted (NOK) n.a. 0.66 1.82 1.44

Total assets 1,024,047 2,828,305 670,755 317,928

Cash and bank 343,345 374,401 590,236 255,251

Total equity 710,887 2,557,021 587,761 253,955

Equity ratio 69% 90% 88% 80%

Shares outstanding, year end 54,727,248 54,527,248 32,198,543 29,125,796

Average fully diluted number of shares 55,240,053 38,027,993 31,704,724 28,054,730

• The 2000 figures exclude extraordinary items relating to the balance sheet revaluations totalling NOKm 1,794

• Operating margin = Operating profit / Revenue

• Earnings per share = Net income / Average number of fully diluted outstanding shares

• Equity ratio = Equity / Total assets

• Average fully diluted number of shares is the average outstanding shares plus the average outstanding options calculated on a daily basis

Annual Report 20003

To our shareholders, customers, partnersand employees

The first year of the 21st century saw TANDBERG Television make

significant moves to build on our core digital broadcasting

business and to establish us as a key player in enabling digital

media delivery. Throughout every part of our business we

increased our focus on adding value, to create an organisation

that delivers to all our stakeholders.

It would be fair to say that 2000 was a year of two halves. In the

first half of the year TANDBERG Television experienced a difficult

time as the company came to grips with the challenges of

merging the acquired NDS Digital Broadcasting Business with the

existing company. The opportunities that the merger offered for

market leadership were clear, but global harmony was by no

means easy.

The second half of 2000 saw considerable achievements

across the company:

Financial: we started to deliver on our financial promise,

reporting positive second half performances that bucked the

trends of our competitors, and of the technology markets in

general.

Management: we are building a world-class management team

with the skills and vision to lead us to the top. New

appointments during 2000 included a new Chief Operating

Officer, Chief Technology Officer and myself as President and

Chief Executive Officer. We appointed senior regional managers

and put key people in critical positions.

Operations: we introduced a quality programme ‘Operation

Excellence’ designed to create a truly world-class organisation,

meeting the highest quality standards and decreasing our time to

market.

Technology: we focused on turning our R&D skills into the

solutions that our customers require. We built on core business

areas such as digital terrestrial television, winning significant

contracts around the world. New markets, such as IP and

broadband, were also targeted with solutions that leverage our

core digital broadcasting skills.

We continued to create business value add and to deliver to

our stakeholders:

Customers: we retained all of our major customers and added

new ones to our portfolio through major contracts wins, such as

in Australia. We achieved closer relationships with our customers

and increased our customer service operations, expanding our

business in areas such as systems integration.

Partners: we increased our spread of commercial and technology

partners to ensure that our solutions are open, interoperable and

available in every corner of the globe.

People: respect lies at the heart of a global employee culture

we are creating. It wasn’t always easy to work for TANDBERG

Television during 2000, but by the end of the year I believe we

had communicated to our people how serious we are about our

business and how much we respect them.

Shareholders: despite a global market depression for technology

stock, our stock performed well during the latter part of 2000

and we are optimistic about our future performance.

Adding Value will continue to be our focal point during 2001.

We operate in a truly exciting market. Digital content is having a

serious social and commercial impact on our lives. The

opportunity to take a piece of information; be it video, audio or

data; and then digitally deliver it to a growing magnitude of

consumer and business devices is creating entirely new

industries. I am proud that the efforts we made during 2000 have

enabled us to end the year with a positive momentum across our

company and with a solid base to move ahead to achieve our aim

of becoming the world’s leading provider of professional delivery

solutions to the media industry.

As we embark on a seriously exciting year for TANDBERG

Television, I want to take a moment to thank our people, our

shareholders, our customers and our partners for your ongoing

commitment and faith in us.

Jørgen Bredesen, President and Chief Executive Officer

Annual Report 2000 4

Main developments and future outlookMarket position

In the first half of the year, the general activity within TANDBERG

Television’s market was slow. Several of the company’s potential

clients remained cautious with their capital expenditure as a

result of the millennium change and related technical problems

due to the date change into the year 2000. However, in the late

summer, the market experienced an increase in momentum, and

the slow first half of the year was contrasted by a second half

with positive market development across geographic regions and

market segments. TANDBERG Television not only capitalised on

the general increase, but also gained ground relative to its

competitors, especially within contribution and distribution

(both fixed & mobile) of digital signals and within the terrestrial

broadcasting of digital television. Within the roll-out of

contribution and distribution of digital television, TANDBERG

Television won deals around the globe, and delivered key

contracts in Canada, Argentina, the US and the UK. The digital

terrestrial broadcasting (traditional VHF/UHF broadcasting)

segment experienced an upswing as Australia, Finland and Spain

initiated investments during the year. Within this segment,

TANDBERG Television has established itself as the leading

infrastructure provider, winning a large majority of the available

contracts, with proven, fully operational systems in place. The

company has positioned itself as one of the main players within

its industry, and has the right technology and sales reach to

benefit from this position in the coming years as the global build

out of digital broadcasting continues.

Product development

TANDBERG Television has a large part of its internal resources

within research and development, which gives the company the

basis for maintaining its technological lead. During the year there

was continued work on improving and upgrading the current

product portfolio, including the launch of the evolution 5000

system, which is an integrated encoding, multiplexing,

modulation and control solution. Adaptation of the evolution

5000 to all major market segments with a range of scrambling

and regional specification support has been an important focus

area during the year 2000.

Other important product launches were a new generation of

decoders, advancements within transmission and control of

digital TV over ATM (telecom) networks, and a new control

system for regional head-ends. Introducing new hardware and

software platforms together with the cost-optimisation and

launch of next generation products has been highly prioritised

on the product development agenda, and is important in

maintaining existing profitability levels.

In addition to expanding existing products and systems, the

company also moved into new market segments through the

introduction of two important products at the IBC exhibition in

Amsterdam. Here the company demonstrated its new

advancements within full-quality broadcasting over IP networks

through the new IP multistreamer, and also its new Digital

Electronic News Gathering (wireless digital TV transmission)

systems, specially suited for the mobile contribution market.

During the year 2000, TANDBERG Television developed its product offering, increased its

geographical domain and targeted new market opportunities. On the whole, the company

leveraged its position as the market’s technological heavyweight, propelling itself into the

new millennium as one of the leaders within its industry.

Report of the Board of Directors

Future outlook

A number of significant measures were taken during the year

to consolidate and restructure the company. In May, Jørgen

Bredesen (44) was appointed President and CEO. With his

successful background from electronics giants Motorola and

Philips, where he held several senior positions, he has the right

combination of strategic and operational experience. He

proceeded to make several key recruitments, and a new top

management team was put in place. A strategic process of

exploring new market opportunities and potential new business

models was initiated, and is well underway in building an

increasingly positive outlook for the company. TANDBERG

Television ended the year 2000 with a fourth quarter showing

good revenue growth and a healthy profit. The strategic logic

behind the recent restructuring of the NDS Digital Broadcasting

Business (DBB), and the combined companies’ geographic reach

and product breadth, gives TANDBERG Television the necessary

base to move the company into new business areas and to take

advantage of new business models.

The Board is therefore optimistic in its predictions for the year

2001 and beyond, and believes that the potential behind

TANDBERG Television’s position as one of the leaders within its

industry gives the company a solid basis for creating future value

for its customers, employees, partners and shareholders.

Discussion of the annual accounts and effecting factors

Income statement, Balance Sheet and Cash Flow 1

2000 was a turnaround year for TANDBERG Television, on the

back of the acquisition of NDS’ Digital Broadcasting Business

(DBB) in late 1999 and the following integration of this business

into the company. In the first half of 2000, revenue and

profitability within DBB was down, incurring significant losses to

the group. As a direct result of this decline, a re-estimation of the

future benefit of DBB’s assets was made. The re-estimation

demonstrated a major permanent impairment in the value of the

assets acquired, and the Board took steps to write off the

intangible assets resulting from the acquisition in full. In

addition, provisions to restructure the DBB operation were made.

The renewed positive outlook for the group is built upon the

assets from the non-DBB part of the company and on the new

opportunities that have emerged over the past six months

through a strategic process of identifying potential new market

to channel the DBB resources into.

TANDBERG Television’s operating revenues in 2000 totalled

NOKm 1,188, while the loss before tax totalled NOKm 1,862. The

total one-off items in this result, including the above-mentioned

write-off of intangible and tangible assets, depreciation of

inventory, and restructuring provisions, totalled NOKm 1,793.

The loss before tax for the year exclusive of these one-off costs

was NOKm 68. Earnings Per Share (EPS) for 2000 was NOK

-34.14 compared to an EPS of NOK 0.66 in 1999. The company’s

other operating expenses were reduced during the year, mainly

as a result of the reduction in staff, but also through stricter cost

control and improved operational focus.

The loss for the year, write-offs and provisions lowered the

group’s equity from NOKm 2,557 to NOKm 711, mainly as a result

of the reduction in total intangible assets from NOKm 1,607 to

NOKm 33, still leaving the company with a healthy equity ratio

of 69% as of December 31, 2000. The total provisions for

restructuring were at year-end NOKm 72.

Note 1 The annual accounts have been prepared on a going-concern basis.

1. Jørgen Bredesen (President and CEO)

2. Jan Chr. Opsahl (Chairman)

3. Tharald Brøvig

4. Arne A. Jensen

5. Dr. Mike Windram

6. Helen Karlsen (Employee Representative)

7. Ralph Høibakk (Alternate Director)

8. Dr. Abraham Peled (Deputy Chairman)

1

4

5

3

6 87

2

Annual Report 20005

Annual Report 2000 6

The majority of these provisions will be applied in the first half of

2001. As the one-off charges consist mainly of balance sheet

revaluations, they do not have a cash effect, and together with a

limited negative cash flow of NOKm 7 from operations,

TANDBERG Television has maintained a strong financial position.

As of 31 December, 2000, the group had cash and liquid assets

of NOKm 343. There is also a potential in reducing the group’s

working capital level from the current NOKm 594 to free up

further capital.

Internal and external environmentPersonnel and organisation

During the year, TANDBERG Television went through significant

organisational change, as focus was put on integrating the

merged units into one global operation, which is headquartered

in Norway, has a major operation in the UK, and sales offices in

the USA, Hong Kong, Australia, France and Germany. In addition,

an agreement to outsource the company’s UK production unit to

a third party manufacturing company, ACW, was signed, which

will refocus TANDBERG Television on its key areas. The transition

has commenced, and is expected to be completed in the second

quarter of 2001. At the end of 2000 the company had 615

employees, of whom 490 worked outside Norway, and during the

first half of 2001, approximately 85 further employees will be

transferred to ACW as a part of the company’s outsourcing of

the UK manufacturing. The know-how and technology resource

represented by its staff, when combined with the strength of its

customer base, gives the company the mix of structure and

creativity necessary to produce leading edge solutions.

TANDBERG Television recognises that its employees are its key

assets, and is committed to maintaining a stimulating working

environment for staff through providing opportunities for career

development. The company aims to attract and retain the best

people within the digital television industry.

Health, environment and safety

Sick leave in the group is low, less than 1%. No serious work-

related injuries or accidents have occurred or been reported

during the year which have resulted in material damage to plant

or injuries to individuals. The working environment is good, and

the company does not carry out any activities that pollute the

environment.

Shareholders and capital

At the start of 2000, TANDBERG Television had a share capital of

NOK 109,054,496 consisting of 54,527,248 shares at NOK 2 par

value. During the year, the company issued 200,000 shares, and

at 31 December 2000 TANDBERG Television had a share capital

of 109,454,496 made up of 54,727,248 shares at NOK 2 par

value. There were no major changes in shareholder structure

during 2000. In addition, the company has the authorisation to

issue a further 2,900,000 shares to option programmes and

500,000 shares for share-save schemes.

Application of profit/loss

The Board proposes that the net loss for 2000 of TANDBERG

Television ASA amounting to NOKm 859 is deducted from other

equity with NOKm 475, and NOKm 384 from share premium

reserve. Total equity after this loss equals NOKm 1,631 whereof

distributable equity equals NOK 0. The Board does not propose

the payment of a dividend.

Jan Chr. Opsahl,

Sign

Chairman

Arne A. Jensen

Sign

Ralph Høibakk,

Sign

Alternate Director

Dr. Abraham Peled,

Sign

Deputy Chairman

Dr. Mike Windram

Sign

Jørgen Bredesen,

Sign

President and CEO

Tharald Brøvig

Sign

Helen Karlsen,

Sign

Employee Representative

Erik Engebretsen,

Sign

Executive Director of

TANDBERG Television ASA

Lysaker, 2 March 2001

The Board of Directors of TANDBERG Television ASA

Profit and Loss Account1 JANUARY TO 31 DECEMBER 2000 (NOK 1,000)

TANDBERG Television ASA TANDBERG Television GROUP

1998 1999 2000 Note 2000 1999 1998

OPERATING REVENUE

0 0 0 Operating revenue 2 1,187,574 483,503 274,616

0 0 0 Total 1,187,574 483,503 274,616

OPERATING EXPENSES

0 0 0 Cost of goods sold -557,373 -242,788 -143,346

1,523 2,166 2,612 Salaries and other personnel costs 4 -403,174 -132,332 -44,524

0 0 -98 Ordinary depreciation 6,7 -84,073 -30,601 -1,960

-858 -3,365 -11 289 Other purchasing, sales and administration costs -233,530 -69,399 -26,977

-2,381 -5,531 -13,999 Total operating costs -1,278,150 -475,120 -216,807

-2,381 -5,531 -13,999 OPERATING PROFIT BEFORE WRITE-OFFS -90,576 8,383 57,809

AND PROVISIONS

WRITE-OFFS AND PROVISIONS

0 0 0 Write-off intangible and fixed assets 6,7 -1,565,590 0 0

0 0 -26,700 Other provisions -227,886 0 0

0 0 -26,700 Total write offs and provisions -1,793,476 0 0

-2,381 -5,531 -40,699 OPERATING PROFIT -1,884,052 8,383 57,809

FINANCIAL INCOME/EXPENSE

0 11,468 -894,297 Income/loss on investments in group companies 0 0 0

19,850 55,930 101,154 Financial income 3 25,168 35,324 25,116

-21 -90 -1 Financial expense 3 -2,966 -4,623 -2,304

19,829 67,308 -793,144 Net financial items 22,202 30,701 22,812

17,448 61,777 -833,843 PROFIT BEFORE TAX -1,861,850 39,084 80,621

-4,892 -17,327 -25,031 Taxes on income 20 -5,097 -14,081 -22,786

12,556 44,450 -858,874 NET PROFIT FOR THE YEAR -1,866,947 25,003 57,835

Earnings per share NOK 5 -34,14 0,66 1,83

Earnings per share, fully diluted NOK 5 n.a. 0,66 1,82

Annual Report 20007

Annual Report 2000 8

Balance SheetAS OF 31 DECEMBER 2000 (NOK 1,000)

TANDBERG Television ASA TANDBERG Television GROUP

1998 1999 2000 Note 2000 1999 1998

Assets

FIXED ASSETS

Intangible assets

Intellectual property rights, patents, goodwill

0 0 0 and trade names 6 0 1,574,018 74

6,805 6,805 7,489 Deferred tax benefits 20 33,424 32,700 5,655

6,805 6,805 7,489 Total intangible assets 33,424 1,606,718 5,729

6,498 Machinery and outfittings 7 154,607 198,303 3,942

Financial fixed assets

472 1,373,065 1,197,417 Loans to group companies 9 0 0 0

46,299 718,420 231,488 Shares in subsidiaries 8 0 0 0

0 0 0 Shares in other companies 10 75 75 75

46,771 2,091,485 1,428,905 Total financial fixed assets 75 75 75

53,576 2,098,290 1,442,892 Total fixed assets 188,106 1,805,096 9,746

CURRENT ASSETS

0 0 0 Inventory 11 149,401 179,859 5,671

0 0 0 Advance payments to suppliers 12 26,001 26,001 17,202

0 0 0 Accounts receivable 13 289,804 286,129 39,184

0 92,516 79,308 Other current receivables 27,390 156,819 8,716

0 92,516 79,308 Total receivables 343,195 468,949 65,102

457,342 291,806 208,983 Cash and bank 14 343,345 374,401 590,236

457,342 384,322 288,291 Total current assets 835,941 1,023,209 661,009

510,918 2,482,612 1,731,184 Total assets 1,024,047 2,828,305 670,755

Equity and debt

EQUITY

Paid in equity

64,397 109,054 109,454 Share capital 15,16 109,454 109,054 64,397

12,880 1,895,555 1,521,465 Share premium 15 1,521,465 1,895,555 12,880

77,277 2,004,609 1,630,919 Total paid in equity 1,630,919 2,004,609 77,277

430,093 474,543 0 Other equity 15 -920,032 552,412 510,484

430,093 474,543 0 Total retained earnings -920,032 552,412 510,484

507,370 2,479,152 1,630,919 Total equity 710,887 2,557,021 587,761

Provisions

0 0 0 Pension obligations 19 51 1,126 683

0 0 0 Other provisions 18 72,022 22,085 0

0 0 0 Total provisions 72,073 23,211 683

Short term debt

7 537 3,123 Accounts payable 138,784 133,280 26,267

3,029 0 685 Tax payable 20 2 485 14,660 19,177

512 284 47 Tax withholdings -12,680 -1,299 4,452

0 2,639 96,410 Other short term debt 17 112,497 101,432 32,415

3,548 3,460 100,265 Total short term debt 241,087 248,073 82,311

3,548 3,460 100,265 Total debt 313,160 271,284 82,994

510,918 2,482,612 1,731,184 Total debt and equity 1,024,047 2,828,305 670,755

Lysaker, 2 March 2001. The Board of Directors of TANDBERG Television ASA

Jan Chr. Opsahl,

Chairman

Dr. Abraham Peled,

Deputy Chairman

Tharald Brøvig Arne A. Jensen Dr. Mike Windram

Helen Karlsen

Employee

Representative

Ralph Høibakk

Alternate Director

Jørgen Bredesen,

President and CEO

Erik Engebretsen,

Executive Director of

TANDBERG Television ASA

Cash Flow Analysis1 JANUARY TO 31 DECEMBER 2000 (NOK 1,000)

TANDBERG Television ASA TANDBERG Television GROUP

1998 1999 2000 Note 2000 1999 1998

Cash flow from operations

17,448 61,777 -833,843 Profit before tax -1,861,850 39,084 80,622

0 -3,029 0 Tax payments in the period -17,957 -19,177 -16,058

0 0 98 Ordinary depreciation 6,7 84,073 30,601 1,960

21 90 662,580 Items classified as investment or financing 1,571,052 4,623 -3,159

7 -92,410 2,586 Movements in stocks, creditors and debitors 32,287 -322,681 6,043

7,790 -3,024 81,819 Change in other accruals 185,107 -71,702 2,303

25,266 -36,596 -86,761 Net cash flow from operations -7,287 -339,252 71,711

Cash flow from investments activities

0 0 -6,498 Purchase of fixed assets 7 -31,444 -1,799 292 -2,362

0 -672,121 -204 Purchase of shares in other companies 0 0 0

0 0 0 Receipts from disposals of other investments 0 0 234

0 -672,121 -6,702 Net cash flow from investment activities -31,444 -1,799,292 -2,128

Cash flow from financing activities

-21 -90 -1 Interest paid -2,966 -4,623 -2,303

267,705 1,927,332 10,641 Proceeds from share issues 10,641 1,927,332 267,705

-472 -1,372 593 0 Group loans 0 0 0

0 -11,468 0 Group contributions 0 0 0

267,212 543,181 10,640 Net cash flow from financing activities 7,675 1,922,709 265,402

292,478 -165,536 -82,823 Net change in liquidity during the year -31,056 -215,835 334,985

164,864 457,342 291,806 Liquid assets at 1 January 374,401 590,236 255,251

457,342 291,806 208,983 Liquid assets at 31 December 343,345 374,401 590,236

Annual Report 20009

Annual Report 2000 10

Note 1 Accounting principlesConsolidation principles

The consolidated accounts include the parent company

TANDBERG Television ASA and companies in which the parent

owns more than 50% of the voting stock. All inter-company

transactions, profits, receivable and payables are eliminated in

the consolidated accounts.

The cost of shares in subsidiaries is eliminated against the equity

of the subsidiary at the date of acquisition or establishment. Any

amount paid in excess of the underlying equity is attributed to the

various assets and liabilities of the subsidiary and any remaining

amount is classified as goodwill. A corresponding policy is

followed when acquiring a business that is not incorporated. The

cost of business acquired includes beyond the purchase price, all

directly related external costs related to the acquisition.

Companies and businesses acquired or started up during the

year are included in the consolidated accounts from the time

TANDBERG Television acquired the control of or started up the

other entity.

Translation of foreign subsidiaries

The profit and loss accounts of foreign subsidiaries are

translated at the average exchange rates for the year. Balance

sheet items for integrated companies are translated at the

historical exchange rates except for monetary items, which are

translated at the exchange rates prevailing on 31 December. The

corresponding translation gains and losses are charged to profit

and loss accounts. For other subsidiaries, all balance sheet items

are translated at the exchange rate prevailing on 31 December.

Translation gains and losses are charged against equity.

Operating revenues

Income from the sale of goods is recognised at the date of

delivery. Income from services is recognised as the service is

provided. Long term manufacturing contracts (projects) are

accounted for according to the percentage of completion

method. Where losses are anticipated on a project, provision is

made for the full amount of any expected loss.

Classification

Current assets and current liabilities include all balance sheet

items expected to be realised within 12 months. An item is

classified as extraordinary if it is material in amount, unusual in

nature and is expected to occur infrequently or irregularly.

Accounts receivable

Accounts receivable from customers are recorded at face value

and written down by the amounts of any expected losses.

Inventories

Inventories of raw materials and components purchased from

third parties are valued at the lower of FIFO cost or net realisable

value. Inventories of work in progress and finished goods are

valued at the cost of production.

Shares

Shares in subsidiaries are valued at the lower of cost and

estimated long-term value.

Machinery and outfittings

Machinery and outfittings are depreciated on a straight-line

basis over 3-5 years.

Leasehold improvements are depreciated over the lifetime

of the lease.

Patents, similar rights and research & development

Patents and similar rights were, until fully written off, amortised

based upon expected revenues to be generated from these

assets over the next 15 years.

Self-generated research and development are expensed as

operating costs as they are incurred.

Foreign currency

Current assets and liabilities denominated in foreign currencies

are valued at the exchange rate applicable at the date of the

balance sheet to the extent not hedged through forward

exchange contracts in which case the forward rate is used.

Employee share purchase schemes

The Group has share option schemes or share saving

programmes that include all employees in EMEA and the

Americas. To the extent the options or shares are issued at less

than the market value, the difference between market and issue

price is charged as a payroll expense.

Social security taxes related to the difference between strike

price and market price at year end are provided for over the

lifetime of the programmes.

Pension arrangements

The Group has a defined benefit plan for its Norwegian and

German employees arranged through an insurance company.

Pension liabilities are recognised in the balance sheet in

accordance with the Norwegian provisional pension accounting

standard. The employees in the other foreign subsidiaries are

covered through defined contribution plans.

Notes to the Financial Statements

Taxes

The tax charge in the profit and loss statement consists both of

taxes payable for the period and the change in deferred taxes.

The change in deferred taxes reflects future taxes payable or

receivable that arise as a result of the year’s activities. Deferred

taxes are included as a fixed asset or long-term liability in the

balance sheet. A deferred tax asset is only recognised to the

extent it is assured beyond reasonable doubt it will be realised.

Cash flow statement

The cash flow statement is prepared according to the provisional

standard issued by the Norwegian Accounting Standards Board.

Note 2 Operating revenuesOperating revenues by region (NOKm):

Region 2000 1999 1998

EMEA* 676.2 382.0 227.2

Americas 312.6 73.0 27.5

APAC** 198.8 28.5 19.9

Total 1,187.6 483.5 274.6

* Europe, Middle East and Africa. ** Asia and the Pacific region

Note 3 Financial market risksTANDBERG Television is exposed to currency risk as it has large

income in EURO, USD, and GBP, with large costs in GBP and NOK.

This results in a net exposure to USD and EURO, with a negative

net exposure to GBP, relative to NOK. Major contracts in other

currencies have to some extent been hedged by currency forward

contracts to reduce the degree of currency risk. As of 31.12.2000,

the group had two outstanding contracts, against EURO (EURm

2,0) and Australian Dollars (AUDm 1,7).

Note 4 Contracts of employmentNo senior employee of the group has a contract of employment

that provides for more than one year's salary as compensation in

the event of leaving employment.

(NOK 1,000) 2000 1999 1998

Salaries 313,766 97,812 31,925

Social security cost 29,405 11,605 4,953

Pension costs 20,505 5,481 1,337

Other payments 39,497 17,434 6,327

Total 403,174 132,332 44,542

Payments to senior employees (1,000)

CEOs Board of Directors

Salary and other compensation GBP 589 NOK 755

Pension Costs GBP 8 NOK 0

Total GBP 597 NOK 755

The CEO salary includes payments relating to the transition

between the former and new CEO. The Chairman of the Board has

60,000, and the CEO has 100,000 share options in the company.

A loan of NOK 1.408.000, at a 5% annual interest rate, was given

to the CEO during the year 2000. The loan was fully repaid in

February 2001. No other loans or guarantees have been given to

the chairman of the board, directors or related parties.

The executive director of TANDBERG Television ASA had a total

salary of NOKm 1.1, 215,000 stock options, and is a member of

the company’s pension plan agreement. The cost for 2000 was

NOK 74.447.

Auditor

The auditor’s fee for 2000 has been charged to expense with NOK

440,000 for the parent company while other fees to the auditor

amounted to NOK 282,000.

Estimated audit fees for the Group amounted to NOK 1,146,000

and NOK 4,105,738 for other services.

Note 5 Earnings per shareEarnings per share is calculated on the basis of profit for the

year, divided by the time weighted average number of shares

issued, calculated on a daily basis.

2000 1999 1998

Profit for the year (NOK 1.000) -1,866,947 25,003 57,834

Average number of shares 54,663,803 37,884,485 31,661,343

Earnings per share -34,14 0,66 1,83

Average number of shares fully diluted 55,240,053 38,027,993 31,704,724

Earnings per share, fully diluted* n.a.** 0,66 1,82

* Dilution effects include share options issued in 1998, 1999 and 2000. See note 15.

** In the presentation of earnings per share, any dilution effect which increases earnings per share shall not be presented according to Norwegian generally accepted accountingstandards.

Note 6 Intangible assetsNOK 1,000 Goodwill Patents and Trademark Total

similar rights

Acquisition cost at 1 January 535,450 1,050,287 420 1,586,157

Additions during the year 0 0 0 0

Disposals during the year 0 0 0 0

Acquisition cost at 535,450 1,050,287 420 1,587,15731 December

Accumulated depreciation 6,851 4,900 388 12,139at 1 January

Depreciation for the year 9,943 6,900 32 15,598

Write downs during the year 518,656 1,038,487 0 1,557,143

Written off on disposal 0 0 0 0

Accumulated depreciation 535,450 1,050,287 420 1,586,157at 31 December 2000

Book value at 31 December 2000 0 0 0 0

Annual Report 200011

Annual Report 2000 12

As a result of negative cash flows in 2000 and expected future

cash flows for the foreseeable future related to the operations

purchased from Ordinto Investments Limited on 14 October

1999, the Board of Directors decided to write off intangible

assets and goodwill with effect from second quarter of 2000.

Impairment reviews have been conducted at year end in order to

assess the value of the intangible assets. The review indicated no

basis for a reversal of the write-off. The goodwill, patents and

similar rights were related to this acquisition.

Depreciation rates are disclosed in Note 1.

Note 7 Machinery and outfittingsNOK 1,000 Machinery and outfittings

Acquisition cost at 1 January 237,297

Additions during the year 31,944

Disposals during the year 0

Acquisition cost at 31 December 269,241

Accumulated depreciation at 1 January 38,989

Depreciation for the year 67,198

Write downs during the year 8,447

Written off on disposal 0

Accumulated depreciation at 31 December 114,634

Book value at 31 December, 2000 154,607

As a result of negative cash flows in 2000 and expected future

cash flows for the foreseeable future related to the operations

purchased from Ordinto Investments Limited on 14 October

1999, the Board of Directors decided to write down certain fixed

assets with effect from second quarter of 2000.

Depreciation rates are disclosed in Note 1.

Note 8 Shares in subsidiariesShare Nominal No. of Owner- Book valuecapital value shares ship (NOK)

TANDBERG Television Systems AS (Lysaker, Norway)

NOK 111,350,000 NOK 10 11,135,000 100 % 210,667,000

TANDBERG Television Ltd. (Southampton, UK)

GBP 43,146,863 GBP 1 43,146,863 100 % 01

TANDBERG Television Inc. (Orlando, USA)

USD 2,347,677 USD 1 2,347,677 100 % 17,666,629

TANDBERG Television Pty Ltd. (East Sydney, Australia)

AUD 90,188 AUD 1 90,188 100 % 460,740

TANDBERG Television Ltd. (Hong Kong)

HKD 2,437,885 HKD 1 2,437,885 100 % 2,490,100

TANDBERG Television GmbH (Ismaning, Germany)

DEM 48,896 DEM 48,896 1 100 % 203,750

Total 231,488,219

1 The shares have been fully written off in 2000 from the original costs of NOKm 551.

Note 9 Group loansLong term loans from parent company to group companies were

at December 31, 2000 amounting to:

Company NOK Local currency Interest rate(1,000) (1000)

TANDBERG Television Systems AS 1,038,896 NOK 1,038,896 Nibor + 1%

TANDBERG Television Ltd. 503,642 GBP 38,724 Libor + 1% 1

TANDBERG Television Inc. 29,472 USD 3,727 Libor + 1%

TANDBERG Television Ltd. 2,768 AUD 2,646 Libor + 1%

TANDBERG Television Pty. Ltd. 1,024 HKD 198 Libor + 1%

1The loan is subordinated and interest is only accruing to the

extent TANDBERG Television Ltd. shows a net profit for the year.

No interest has been charged for 2000. A provision of NOKm 341

has been made against this loan.

Note 10 Shares in other companiesShare Nominal No. of shares Interest Book valuecapital value (NOK)

Norteam AS 500,000 1,000 75 15% 75,000

Note 11 Inventories(NOK 1,000) 2000 1999 1998

Raw materials and components 93,844 93,787 10

Work in progress 17,435 24,774 3,605

Finished goods 38,123 61,298 2,056

Total 149,401 179,859 5,671

Note 12 Advances to suppliersThe group has made an advance payment of NOKm 30 to

Hadeland Produkter AS, a sub-contractor to the company. The

advance is secured on the inventories of Hadeland Produkter AS.

TANDBERG Television has placed orders at Hadeland Produkter

AS for an amount of NOKm 73 at year end. The Group has made a

provision of NOKm 4 against possible obsolescence.

Note 13 Accounts receivableA provision for losses on account receivables from customers of

NOK 16,805,000 has been made in the consolidated accounts.

The provision in the consolidated accounts in the previous year

was NOK 13,650,000. Included in accounts receivables are

accrued income related to long term projects amounting to

NOKm 29,3.

Note 14 Liquid assetsLiquid assets include restricted deposits for taxes withheld from

employees of NOK 2,941,405 (NOK 2,584,761 in 1999) in the

consolidated figures and NOK 91,943 (NOK 153,566 in 1999) in

the parent company accounts. Certain companies in the group

have a joint bank account and the companies participating in this

arrangement are jointly and severally liable for the accounts.

At the General Meeting on 16 April 1998, the Board was

authorised to issue up to 600,000 shares each of NOK 2,

- nominal value at a price to be decided by the Board. The

authorisation may be exercised until December 31 2001.

At the Extraordinary General Meeting on 8 October 1999 the

Board was authorised to issue up to 2,000,000 shares each of

NOK 2 - nominal value at a price of between NOK 2 - and

NOK 300 - per share. The authorisation may be exercised until

8 October 2001. It will, at the annual shareholders meeting in

2001, be proposed prolonged to 2003 on unchanged terms.

At the Ordinary General Meeting 27 April 2000, the Board was

authorised to issue up to 6,000,000 shares each of NOK 2

- nominal value at approximately market price for the purpose of

equity issues or non-cash contributions. The authorisation may

be exercised until the Annual General Meeting in 2001.

At the Ordinary General Meeting 27 April 2000, the Board was

authorised to issue up to 300,000 shares each of NOK 2

- nominal value at a price decided by the Board for the benefit

of employee options. The authorisation may be exercised until

26 April 2002.

At the Extraordinary General Meeting on 4 December 2000 the

Board was authorised to issue up to 500,000 shares each of

NOK 2 - nominal value at a price decided by the Board for the

benefit of employees abroad. The authorisation may be exercised

until the Annual General Meeting in 2002. It will, at the Annual

General Meeting in 2002, be proposed to be prolonged to 2003

on unchanged terms.

Options granted

The Board resolved in 1998 to exercise the authority granted to it

by the Annual General Meeting held on 16 April 1998 by issuing

options over 535,000 shares to senior employees at an initial

exercise price of NOK 52 per share, increasing thereafter by 1%

per month. The balance of the share option plan up to 600,000

shares was issued at NOK 72 in 1999. The share option

agreement is valid for three years, and up to one third of the

options may be exercised each year.

Note 15 Equity and ownership structure (NOK 1,000)

TANDBERG Television ASA

Share capital Share premium reserve Other equity Total

Equity as of 31 December 1999 109,054 1,895,555 474,543 2,479,152

Share issue 28 March, 2000 400 10,241 10,641

Net Profit for the year -384,331 -474,543 -858,874

Equity as of 31 December 2000 109,454 1,521,465 0 1,630,919

TANDBERG Television Group

Total Equity

Equity as of 31 December 1999 2,557,021

Share issue 10,641

Currency translation adjustment 10,172

Net Profit for the year -1,866,947

Equity as of 31 December 2000 710,887

At 31 December 2000 TANDBERG Television had a share capital of 109,454,496 made up of 54,727,248 shares at NOK 2 par value.

Authorisations to the Board of Directors

Authorisation date 16.04.98 17.06.97 08.10.99 27.04.00 27.04.00 04.12.00 Total

Valid until 31.12.01 30.06.01 08.10.01 26.04.02 26.04.01 GM 2002 0

Purpose Option schemes For key employees Option schemes Option schemes Equity issue Share-save program

Balance 01 January 2000 600,000 350,000 2,000,000 2,950,000

New authorisations 300,000 6,000,000 500,000 6,800,000

Allocation of Board authorisations

Allocated as of 01 January 2000 600,000 0 0 600,000

New directed offering 200,000 200,000

New options granted 2,000,000 86,000 2,086,000

Non-allocated 31 December 2000 0 150,000 0 214,000 6,000,000 500,000 6,864,000

Annual Report 200013

Annual Report 2000 14

The Board resolved in the year 2000 to give the Administration

and the Chairman of the Board the authority to issue options

over 2,000,000 shares to employees at an initial exercise price of

NOK 57.50 per share. The share option agreement is valid for

three years, and up to one third of the options may be exercised

each year after the year end results.

At board meetings held in the autumn 2000, the Board resolved in

total to allocate 86,000, out of the authorisation given on April 27

2000 for 300,000 shares, at an initial exercise price of NOK 57.50.

Share saving program

The Board resolved on 10 October 2000 to make 500,000 shares

available for a share saving program for employees outside of

Norway.

Note 16 20 Largest shareholdersAs of 31 December 2000, TANDBERG Television had 4,038

shareholders. 61.48% of its shares where owned by non-

Norwegian investors. A list of the 20 largest shareholders is set

out on page 19.

Note 17 Other short term liabilitiesNOK 1,000 31.12.00 31.12.99

Advances from customers 12,436 13,441

Provision for product warranties 67,644 32,761

Accruals 32,417 55,230

Total other short term liabilities 112,497 101,432

Note 18 Restructuring provisionsNOK 1,000 01.01.00 Charged to Utilised 31.12.00

profit and loss

Restructuring provision 22,085 63,467 13,530 72,022

Due to decreasing profitability in the first half of 2000, a detailed

review of the entire group was performed by the Board and

management. Immediate actions were taken, and as a result the

UK-based production facilities will be outsourced during the first

half of 2001. See note 24 for further details. The restructuring

process has resulted in a writedown of inventory of NOKm 79,

writedown of fixed assets of NOKm 8.7 during the year and other

restructuring provisions of NOKm 72 as of 31.12.00.

Note 19 Pension arrangements (NOK 1,000)The group has defined benefit plans for its Norwegian and

German employees through schemes with insurance companies.

Estimated values are used in determining the value of the

pension fund and the accrued pension liability. The group has

defined contribution plans for its US, UK, Australian and Chinese

employees.

For the Norwegian operation the estimates are based on the

following assumptions as at 31 December 2000:

Discount rate 6.0%

Expected return 7.0%

Earnings growth 3.0%

Increase in Social Security contribution (G) 3.0%

Annual pension growth 2.5%

Pension Expense - Norwegian Plan 2000 1999 1998

Current value of pension liability accrued in the year 2,160 1,861 1,208

Interest on accrued pension liability 491 419 287

Expected return on pension fund (615) (487) (324)

Allocated effect of deviations from estimates 0 0 0

Administration expenses 0 0 0

Booked employers' social security taxation 287 253 166

Pension expense - Norwegian Plan 2,325 2,045 1,337

Pension expenses other plans 18,180 3,456 0

Total pension costs 20,505 5,481 1,337

Pension fund and pension liabilities 31.12.00 31.12.99 31.12.98

Estimated accrued liability (10,848) (8,261) (6,273)

Estimated value of pension fund 10,828 7,409 5,653

Effect of estimate changes not yet booked 0 (134) (24)

Book value of net pension fund asset

(pension liability) (20) (986) (596)

Calculated employers' social security taxation (3) (139) (87)

Calculated pension fund asset (pension

liability) in the balance sheet - Norwegian Plan (23) (1,126) (683)

Calculated pension fund asset (pensionliability) in the balance sheet - German Plan (28) n.a. n.a.

Total calculated pension liability - Group (51) (1,126) (683)

Note 20 Taxation(NOK 1,000) TANDBERG Television ASA TANDBERG Television Group

Allocation of tax on income 2000 1999 1998 2000 1999 1998

Taxes payable, Norway 685 0 3,029 3,982 13,874 19,177

Taxes payable, overseas 0 0 0 1,800 408 -

Change in timing differences, Norway -685 0 0 -18,185 -2,762 1,746

Change in timing differences, overseas 0 0 0 17,500 -14,765 -

Tax effect on equity transactions 25,031 17,327 1,863 0 17,327 1,863

Tax expense 25,031 17,327 4,892 5,097 14,081 22,786

TANDBERG Television ASA TANDBERG Television Group

Timing differences 2000 1999 1998 2000 1999 1998

Short term items -32,604 0 0 -293,943 -53,350 -2,999

Long term items -917,378 -24,302 -24,302 -952,649 -25,436 -17,199

Losses carried forward 0 0 0 -104,161 -32,206 0

Total -949,982 -24,302 -24,302 -1,350,753 -110,992 -20,198

Calculated deferred tax -265,995 -6,805 -6,805 -400,271 -32,699 -5,655

Deferred tax recorded in balance sheet -7,489 -6,805 -6,805 -33,424 -32,699 -5,655

Average tax rate 28 % 28 % 28 % 30 % 29 % 28 %

Deferred tax assets in the Group are related to positive timing

differences in TANDBERG Television ASA and TANDBERG

Television Systems AS.

Profit and loss and the balance sheet for 1998 are recomputed in

order to capitalise deferred tax assets.

Reconciliation of taxes on income

TANDBERG Television ASA TANDBERG Television Group

2000 1999 2000 1999

Pre-tax profit -833,843 61,806 -1,861,849 38,635

Permanent differences 7 75 570,683 14,418

Group contribution 0 0 0 0

Bases for tax calculation -833,836 61,881 -1,291,166 53,053

Taxation -25,032 17,327 5,097 14,081

Tax rate 3 % 28 % 0 % 27 %

The tax rate for the Group deviates from 28% due to different tax

rates in UK, USA, China and Australia, in addition to valuation of

deferred tax assets as of 31.12.00.

Tax rate for TANDBERG Television ASA is 3% due to deferred tax

treatment. The principle is disclosed in Note 1.

Losses carried forward (NOK 1,000) as of December 31, 2000

UK

Losses carried forward 104,161

Losses carried forward in UK can be carried forward indefinitely.

There are no losses in other countries that may be carried

forward.

Annual Report 200015

Annual Report 2000 16

Note 21 Shares owned by members of theBoard of Directors, CEO and the AuditorJan Chr. Opsahl 171,240

Dr. Abraham Peled 0

Tharald Brøvig 2,230,800

Arne A. Jensen 20,000

Dr. Mike Windram 0

Helen Karlsen 4,052

Ralph Høibakk 42,748

Jørgen Bredesen 120,000

Erik Engebretsen 0

Auditor 0

The number of shares reported includes any shares held by

children under the age of 18 of the named individual or by

companies controlled by the individual.

Note 22 Guarantee liabilities/other liabilities

Liability (NOK 1,000) Rental due 2000 Annual increase Remaining term

Property lease: Lysaker 8,539 90% of index 3.5 years

Property lease: Stoneham 8,150 19 years

Property lease: Strategic Park 9,863 10 years

Car leases 1,211 1 to 4 years

TANDBERG Television Systems AS entered into a 5 year extended

property lease at Lysaker running from 01.04.2000.

TANDBERG Television ASA has guaranteed lease payments by its

subsidiary of NOK 2,992,000.

The group has given other financial guarantees amounting to

NOKm 33.

As at 31 December, 2000 the group has no secured debt.

TANDBERG Television ASA has given a letter of intent to give

financial support to its subsidiary in UK to the extent required

for it to continue as a going concern for the next 18 months.

Note 23 Commitments and contingenciesProvisions have been made to cover the expected outcome of

proceedings to the extent that negative outcomes are likely and

reliable estimates can be made. While acknowledging the

uncertainties of any litigation, management believes that these

matters will be resolved without a material effect on the financial

position or results of operations.

Note 24 Subsequent eventsTANDBERG Television signed a letter of intent on the 31.10.00

with ACW Technology to transfer its UK-based manufacturing

activities. The final contract was signed 21 February 2001. The

transfer programme will be completed during first half of 2001.

As part of the deal, ACW will sublease the 68,000 sq. feet

manufacturing facilities of TANDBERG Television at Hedge End,

Hampshire, UK and TANDBERG Television’s manufacturing

employees will transfer to ACW. Provisions have been made to

cover the expected costs associated with the transfer

programme.

As a part of the restructuring of the Group, the Board decided on

the 22 February 2001 to merge TANDBERG Television Systems AS

into TANDBERG Television ASA with effect from January 1, 2001.

Annual Report 200017

Annual Report 200019

Sharesand Shareholders

Shareholder policy and financial goals

The digital television market is a high growth sector with an

inherent degree of risk, as this growth may fluctuate. Equity/risk

financing is therefore a prerequisite for TANDBERG Television’s

successful long-term development. Such financing demands

higher return, and it is therefore TANDBERG Television’s goal to

increase shareholder value over time, measured by the

development of the share price, by being among the best

performing technology companies within its industry.

TANDBERG Television will create the conditions for share price

increase on the long term, by growing the company’s earnings per

share, which is to be achieved through organic value creation and

through acquisitions. For the next three-year period, the overall

goal is to organically grow revenues, and thereby boost earnings

per share, in the range of 20-30% on an annual basis, and during

this period reach a 15% pre-tax margin.

For TANDBERG Television’s share price to continually reflect the

company’s growth potential, TANDBERG Television is committed to

having an effective investor relations function, especially since the

company operates in an industry unfamiliar to most investors. As a

service function to the investment community, investor relations

will aim to continually supply information for market participants,

on an equal basis, to form the basis for knowledgeable investment

decisions.

Shares and share capital

At the start of the year, TANDBERG Television had 54,527,248

shares. During 2000, there was one directed offering of 200,000

shares, and at year end 54,727,248 outstanding shares. At the

end of the year there were 2,686,000 outstanding options within

the company, and a fully diluted outstanding number of shares of

57,413,248.

Investor relations contact

Martin P. Hoff, Finance Director

Tel. +47 67 116 200 E-mail. martin.hoff@tandbergtv.com

Graphs

1. First half 2000: Development of share price vs. Oslo Stock Exchange Technology Index

2. Second half 2000 to date: Development of share price vs. Oslo Stock Exchange Technology index

150

130

110

90

70

50

30

31 Dec

7 Jan14

Jan21 J

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28 Jan

4 Feb

11 Fe

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18 Fe

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25 Feb

3 Mar

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24 Mar

31 Mar

7 Apr

14 A

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21 Apr

28 Apr

5 May

12 M

ay

19 M

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26 May

2 Jun

9 Jun

16 Ju

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23 Jun

30 Jun

TANDBERG Television share price

OSE Technology Index, rebased

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100

80

60

40

20

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3 Jul

17 Ju

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31 Jul

14 A

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28 Aug

11 S

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TANDBERG Television share price

OSE Technology Index, rebased

1. 2.

Annual Report 2000 20

Largest shareholders

Shareholders as of 31.12.2000

Name of Shareholder Shares Percentage (%)

Ordinto Investments 10,210,569 18.66

Chase Manhattan (nom) 3,441,544 6.29

State Street Bank and Client (nom) 2,404,747 4.39

KLP Forsikring 2,294,200 4.19

Gezina 2,230,800 4.08

Chase Manhattan (nom) 1,699,710 3.11

Phildrew Nominees 1,420,028 2.59

Boston Safe Dep (nom) 1,319,030 2.41

Credit Suisse 1,195,488 2.18

Storebrand Livsforsikring 910,100 1.66

Fidelity Funds 837,600 1.53

Vereins Und Westbank (nom) 830,900 1.52

Avanse Forvaltning 815,300 1.49

Goldman Sachs (nom) 781,594 1.43

Gjensidige NOR 771,800 1.41

Vital Forsikring 756,200 1.38

Skandia Grønt Norden 750,000 1.37

Bankers Trust Company (nom) 749,510 1.37

Fidelity Funds 688,700 1.26

Fidelity Funds 553,600 1.01

Sum, top 20 34,661,420 63.33

Remaining 20,065,828 36.67

Total 54,727,248 100.00

21 Annual Report 2000

Business Overview -Building Core Business

TANDBERG Television’s core business is focused on delivering professional solutions to

the global media industry. The company’s track record of technology innovation, coupled

with its proven systems integration and global support capabilities places it in a strong

position in both the Direct To Home television markets and the Contribution and

Distribution sectors.

Annual Report 2000 22

Driven by the need to make best use of precious bandwidth and large-scale

infrastructure investment, digital broadcasting to the home (DTH) is now

enabling the introduction of new services to the living room like home

shopping and banking, enhanced video services such as video-on-demand

or high definition TV and interactive entertainment.

Direct to Home

TANDBERG Television works withleading DTH satellite broadcastersaround the world, including:

• BSkyB• Orbicom• SKY digital• SKY PerfecTV • STAR

For consumers it means a better viewing

experience with more choice, more channels and

a new world of interactive information and

entertainment accessible from their television

sets. For content providers it enables increased

routes to market and an opportunity to innovate.

For broadcasters it means achieving business

economies unavailable with analogue, and creates

new revenue generating services, as well as a

chance to differentiate in service and content.

TANDBERG Television has a strong position in the

DTH sector as one of the leading providers of

digital compression infrastructure to the global

broadcast industry. TANDBERG Television, and its

network of business partners, work closely with

satellite, terrestrial and cable broadcasters to

provide the systems and expertise that help them

deliver their business plans and introduce new

revenue generating services to the consumer.

The company continues its open systems policy

with active participation in standards

organisations, industry groups and

interoperability tests. Through close co-operation

with strategic partners including conditional

access, management and return path vendors,

TANDBERG Television is working to provide

broadcasters with open interoperable solutions

that optimise bandwidth utilisation, decrease

operational costs and provide interactive services.

Integrated DTH solutions

At the heart of TANDBERG Television’s solutions

for the DTH market is the company’s evolution

5000 broadcast system. This range of products,

designed for the management and transmission

of digital TV signals across satellite, cable or

terrestrial networks, includes open solutions for

encoding, multiplexing, modulation, statistical

multiplexing and control software. It meets

customers’ demands for high performance open

systems that are very flexible.

Alongside evolution 5000, TANDBERG Television

produces a range of solutions that meet the

specific needs of customers in the satellite, cable

and terrestrial DTH markets.

Having designed, built and commissioned the

digital infrastructure behind 17 out of the 23

major DTH-Satellite systems world-wide, it is from

this market segment that TANDBERG Television

first gained its experience and proven ability to

deliver large scale complex projects. While only a

few opportunities for new installations remain,

the next few years will see steady repeat business

from the existing customer base as product

performance and feature improvements allow

satellite broadcasters increased service offerings

and tangible cost saving benefits. In addition to

some of the longest established digital operators

increasing channel counts, satellite broadcasters

continue to spearhead the innovation in

interactive service offerings, presenting

corresponding system upgrade and expansion

opportunities for TANDBERG Television.

Satellite

Annual Report 200023

Direct to Home

Cable television’s move from analogue to digital

broadcasting offers a whole new world of

opportunities, both for the cable operators and for

the end-user. With a two-way broadband network,

and the necessary digital technology, cable

subscribers can benefit from improved TV quality, a

wider selection of programmes, video-on-demand,

pay per view, telephony, Internet, gaming and

e-commerce, all directly on the TV. These new

services will provide the cable operators the prospect

of generating additional profit as well as giving them

a competitive edge against other information service

providers via satellite, terrestrial and telecom.

2000 was a successful year for TANDBERG Television

in the digital cable market segment. The signing of a

reseller agreement for return path products with

Cisco late in the year now allows TANDBERG

Television to offer complete 2-way interactive

solutions to the cable industry, supporting additional

revenue opportunities for entertainment

broadcasting, interactivity, web browsing and

telephony across the networks. Given these revenue

generation opportunities for cable operators, a

growing world-wide prospect exists for TANDBERG

Television to utilise its systems design experience

and integration skills, while working with its business

partners, as the cable segment transitions to digital.

TANDBERG Television solutions

Digital cable promises to offer cable operators an

impressive choice of new suppliers and solutions - so

choosing the right partner becomes more important

than ever. The main technology providers in digital

cable will be the companies who understand the

digital world from experience, and are able to offer a

total solution to their customers, including system

design and integration of the necessary third party

products and solutions.

A typical cable TV network consists of a Central Head-

End, with distributed Regional Head-Ends. The

Central Head-End is traditionally the satellite uplink,

the terrestrial compression centre or the main Cable

Head-End. This is where the video and audio is

compressed before multiplexing the services into

transport streams. Signal scrambling (conditional

access) is applied prior to distribution in order to

prevent unauthorised reception of the signals. The

distribution network can be a satellite, terrestrial or

telecom network. In the Regional Cable Head-Ends,

the signals are received, processed/decoded before

redistribution into the cable network in digital or

analogue format.

TANDBERG Television can support complete

solutions for Digital Cable Head-Ends, offering a wide

range of high-quality products such as: encoders,

multiplexers, transport stream descramblers, telecom

adapters, modulators, decoders, monitoring

equipment, system management and network

control. The company’s technology is based upon

open standards, which makes it possible for it to

integrate third party products and solutions, such as

conditional access systems, service information

management, broadband routers and video servers,

into its systems, providing a complete digital Cable

Head-End platform. A modular design ensures easy

system expansion to meet future customer’s

business and technology requirements.

In addition, TANDBERG Television has been one of

the major suppliers of Digital Turn-around solutions

for national Cable Head-Ends in Europe, based on its

ability to provide customised solutions with proven

technology.

Cable TV

Annual Report 2000 24

In November 2000, Switzerland’s largest cable

operator, ntl-owned Cablecom AG, selected

TANDBERG Television to provide a turnkey

solution for the roll out of its SWISSFUN

broadband TV network. Cablecom was in the

process of building a state-of-the-art digital cable

TV network, to offer enhanced services to viewers,

but needed interoperable broadcast management

systems to build the backbone of the network.

TANDBERG Television was chosen to provide

systems from its evolution 5000 range, including

compression and multiplexing equipment that

was subsequently deployed to deliver the

SWISSFUN network to more than 1.4 million

homes across Switzerland. As well as supplying

the solution, TANDBERG Television also provided

the systems integration and support services for

both its own equipment, and interoperable

products from third party vendors.

TANDBERG Television works with leading cable operatorsaround the world, including:

• CableCom• Cable and Wireless • INC • Madritel • Matav • Mediakabel • TeleDanmark

“To achieve this project we needed a partner that could offer us advanced solutions combined

with competitive costs and an open approach to working with other vendors. The solution from

TANDBERG Television does just that, and allows us to provide a reliable digital service to Swiss

cable subscribers, thus offering our viewers a wider choice of home entertainment, such as

interactivity, email and home banking.”

Erich Blunier, Technical Director of Cablecom.

01 Case study:

Turnkey solutions for Cablecom

Suisse

Annual Report 200025

Direct to Home

Analogue terrestrial broadcasting is the world’s

most common television delivery mechanism to

the home and subsequently the transition to

digital broadcasting on these networks offers

significant opportunity for TANDBERG Television.

Both the European based DVB-T and the US

initiative through ATSC Digital Terrestrial

broadcasting deal with the digital delivery of

content (video, audio and data) to viewers homes.

At the home it is received using a conventional

terrestrial antenna and either a Digital TV with an

integrated decoder or a Set-Top-Box decoder

connected to an existing, or new TV.

Serving both DVB-T and ATSC terrestrial

broadcasters and network operators, TANDBERG

Television is the recognised leader in this market.

The company employs engineers who are credited

with having invented the foundation compression

and transmission technologies for digital

terrestrial TV (DTTV) and has gained significant

market share around the world. The company

continues to play a major role in the development

of both the DVB-T and ATSC standards.

The largest activity in digital terrestrial TV (DTTV)

during 2000 has been in the Asia Pacific region,

and especially Australia where TANDBERG

Television has enjoyed significant success, as the

innovators in this region implement infrastructure

to support their service launches. Following first

service launches at the end of 1998, the European

market is steadily growing with several

implementations to launch in 2001, and a number

of trial systems likely to expand into commercial

launches. The Americas and several other ATSC

market opportunities have been delayed due to

debates on reception performance. A resolution to

these debates will restart these markets in 2001.

A combination of both new implementations and

second phase repeat business offers the greatest

opportunities to TANDBERG Television in 2001.

The driver for digital transition can come from a

number of directions. Public service broadcasters

are looking to expand their offerings, commercial

free-to-air broadcasters are seeking new channel

opportunities, while pay-TV providers see

terrestrial as an alternative mechanism -

especially in areas with little cable and satellite

coverage. In areas of high cable penetration, DTTV

is being investigated for the delivery of portable

and mobile reception of video or data services.

The biggest challenge facing DTTV implementers

is the creation of a business case and service mix

attractive enough for consumers to spend money

on Set-Top-Box (STB) reception equipment,

especially in exclusively free-to-air cases where

there is no pay-TV operator to fund the cost of

consumer STBs. In these cases integrated digital

televisions, at little additional cost, are seen as

the solution. While Europe continues to look at a

service mix of free-to-air and pay-TV, America and

Asia are looking towards the superior quality high

definition TV as the way forward.

Whatever the outcome of the service mix decisions,

TANDBERG Television as the leading supplier of

flexible DTTV solutions, is well positioned and

most capable of meeting all national and regional

broadcasting architecture needs.

Digital Terrestrial TV

Annual Report 2000 26

Gold

TANDBERG Television works withleading DTTV operators around theworld, including:

• Australian BroadcastingCorporation (ABC)

• BBC• Network Nine• Network Ten• ntl• OnDigital• Sinclair Broadcasting• Tribune Broadcasting

The world’s athletes weren’t the only people to

grasp gold in Australia during 2000. TANDBERG

Television added to its digital terrestrial trophy

cabinet with significant wins, valued at over

NOKm 195 in the year 2000, with 4 Australian

capital city broadcasters. As Australian television

prepared for the January 2001 launch of digital

terrestrial TV, ABC, Network Nine, Network Ten and

SBS chose TANDBERG Television’s technology,

solutions, systems integration and support expertise

to be deployed in four of the five Australian

capital city free to air television networks.

TANDBERG Television’s solutions and expertise

will play an important role in bringing a new era of

digital television to Australian living rooms and in

helping its partners introduce new revenue

generating services. The systems comprise both

network multiplex management and emission

equipment for Australia’s eight major cities -

Adelaide, Brisbane, Canberra, Darwin, Hobart,

Melbourne, Perth and Sydney. For viewers,

digital terrestrial TV will mean wider choice and a

higher quality TV offering, as new services are

introduced such as interactivity, email and

enhanced channel services

The major test came in January 2001, when the

four networks went live. TANDBERG Television

solutions delivered Australia’s first digital TV

signals, without a single problem.

Australia

“As a major commercial television broadcaster in Australia, committed to the introduction of

digital television, we wanted more than just a product supplier. We were looking for a true

technology partner and an organisation that totally understands digital terrestrial

broadcasting. TANDBERG Television is able to offer us proven high definition and standard

definition compression, transmission and broadcast management solutions, supported by

the expertise of engineers, closely involved with the development of DTT.”

Gerry Thorley, General Manager of Network Operations at Network Ten Pty Limited.

02 Case study:

Going for gold in Australia

Annual Report 200027

Contribution and Distribution

Fixed contribution and distribution (C&D) is where content is

transferred between studios or affiliates to various locations

before it finally reaches the home, either through digital head-

ends or decoded back to analogue formats.

Fixed contribution deals with point-to-point, high quality content

transfer between studios where the material is edited, mixed and

repackaged with, for example, language adjustments, addition of

local news and weather and ad-insertion, for onwards distribution.

Within this sub-segment, customer focus remains, as ever, on

picture quality.

The distribution sector deals with the bulk transmission of

finished programme material from a TV studio or a programme

packager. The quantity of channels being distributed typically

demands cost effective and efficient use of bandwidth, while at

the same time requiring that quality be maintained.

The growth of the digital TV market and the proliferation of

channels and content has led to C&D systems becoming ever

more complex, creating an increasing need for end-to-end

solutions, in preference to merely a collection of black boxes

provided by numerous vendors. TANDBERG Television has been

able to demonstrate an in-depth understanding of these complex

systems and has been well placed to provide tailored solutions

that fulfil customer revenue potentials and provide added value

services such as data delivery to maximise bandwidth utilisation.

The migration from analogue to digital is an area in which

TANDBERG Television has strong credentials. Access to customer

reference sites has played a key role in winning crucial bids.

Investment in technical pre-sales support has enabled

TANDBERG Television to assist those making this transition from

analogue to digital networks. While a comprehensive range of

post-sales support services enables customers to keep their

mission critical transmissions on-air.

TANDBERG Television solutions

TANDBERG Television offers the world's leading range of

compression encoders to provide flexibility, security and optimum

picture quality for all contribution and distribution applications.

Through support of statistical multiplexing the evolution 5000

range of encoders ensures efficient use of bandwidth. Coupled with

a user-friendly system control, flexible conditional access, versatile

programme scheduling and a wide range of professional and

commercial integrated receiver/decoders, TANDBERG Television

remains at the forefront within the fixed C&D market segment.

Satellite C&D is distance transparent and can provide immediate

access to the entire world without the need for complex

terrestrial infrastructure. The advance of telecoms technologies

such as Asynchronous Transfer Mode (ATM) has, however,

recently enhanced interest by broadcasters who can see the

business benefits of having flexible, on-demand bandwidth

accessible through switched telecoms networks.

TANDBERG Television has been investing heavily in advanced

satellite and ATM technologies and a number of key product

launches are to be made to the market during 2001. The global

transition from ATM to Internet Protocol (IP) networks over the

coming months will gather pace, providing TANDBERG Television

with further opportunities primarily in Europe and the USA but

also during 2002 in the Far East. It is the ability to meet both

satellite and telecoms transmission requirements, that ideally

positions TANDBERG Television to offer the best solutions to

meet broadcasters' individual needs.

The backbone of the broadcast market is the contribution and distribution segment.

TANDBERG Television has been at the forefront of this market segment winning many

prestigious system sales and contracts in both the fixed contribution and distribution

and the mobile contribution markets.

Fixed Contribution and Distribution

Annual Report 2000 28

TANDBERG Television works with leading contribution anddistribution organisations around the world, including:

• BT Broadcast Services• FOX Sports Net• Network Ten Ltd• PanAmSat Corporation• Pramer S.C.A.• Telesat Canada

FOX Sports Net selected TANDBERG Television to

provide various digital broadcast system elements

for integration into a national ATM-based content

contribution and distribution network in March

2000. Using ATM technology for connecting

multiple locations and multiplexing different

connections over a single link is becoming an

appealing, cost effective solution for digital

broadcasters. TANDBERG Television has worked

with broadcasters around the globe providing

them with the necessary encoding, decoding,

interface, switching and control tools and signing

FOX Sports Net has proved a significant win.

The FOX Video Network (FVN) will enable regional

production and operational facilities around the

US to transmit and receive regional sports

content. The control of the network, including

encoders, decoders and all broadcast components

will be handled at the FOX Video Network -

Network Operations Center in Los Angeles.

“FOX Sports Net selected TANDBERG Television to provide a turnkey encoding, decoding,

ATM interfacing and control system for this network because of its experience in the digital

broadcast industry and our extensive experience with TANDBERG Television’s MPEG-2 encoding

and decoding systems. TANDBERG Television was able to bring to the table all the right pieces

we needed to build a customer controlled ATM based video network, and with a very quick

turnaround.”

Robert Dutcher, former Director of National Technical Operations for FOX Sports Net.

America

03 Case study:

ATM Network for FOX Sports Net

Photo courtesy of CommunicationsEngineering, Inc (CEI)

Annual Report 200029

Contribution and Distribution

MobileContribution

The mobile contribution market is aimed almost

exclusively at getting live, digital pictures from

unique events back to a network or platform that

can distribute the acquired material to a larger

number of reception sites. Therefore, by default,

the largest markets that use mobile contribution

systems are news, sports and special events.

TANDBERG Television was the first company to

bring Digital Satellite News Gathering (DSNG)

solutions to market in 1995 and has been market

leader by some considerable distance since the

first units were sold. With the digitisation of

broadcasting, TANDBERG Television has found a

willing market for its mobile contribution products

and enjoyed return business from its original

analogue customers who are aiming to produce

digital content directly from their outside

broadcast events. Furthermore, the news and

sports markets have been growing steadily as

more and more channels become available to the

digital television consumer. Demand for live news

and sports coverage shows no sign of slowing

down and demand for TANDBERG Television’s

mobile contribution encoders (MCEs) has risen

accordingly. Furthermore, in recent years as the

thirst for live news coverage from ever more exotic

locations has increased, TANDBERG Television has

responded to this demand by bringing down the

size of its MCEs, whilst at the same time

increasing the functionality. This is particularly

important given the market’s increasing use of

aircraft transportable DSNGs (or “fly aways”).

TANDBERG Television has also invented a solution

that has revolutionised terrestrial microwave

based transmissions (commonly known as

“links”). This technology is known as D-ENG

(Digital Electronic News Gathering) and is based

on the original R&D work carried out by

TANDBERG Television to create modulation

schemes for digital terrestrial TV. The core

advantage of this system is that it has removed

the need for “line of sight transmissions”.

Currently, the industry standard method of

sending live pictures from one point to another

involves exacting parameters. These include

criteria such as the transmitter point must be able

to “see” the receiver. Anything blocking the

transmission path such as a building, mountain or

atmospherics inevitably cause interference and

the subsequent loss of transmission.

TANDBERG Television has virtually eliminated the

historical problems associated with live links and

the results have successfully demonstrated that

pictures can even be transmitted whilst on the

move, with no break up. Upon being launched to

the market during 2000, D-ENG received a

number of technical innovation awards from well-

respected industry bodies and magazines. IBC

2000 featured the E6100 helicopter based D-ENG

as its opening product to launch the exhibition.

Innovation is key in the mobile contribution

segment as broadcasters and newsgatherers

battle to be first with the news and to provide

compelling outside broadcast and live

programming. TANDBERG Television’s commitment

to technical innovation and market leading

solutions shows every sign of enabling the

company to increase its market share even further.

TANDBERG Television’s Digital Electronic News

Gathering (D-ENG) solution achieved a world first

in September 2000, by broadcasting live pictures

over a distance of over 600km from a Lufthansa

Airbus cruising at 8,000m at a speed of 840km/h.

AVS, a German broadcast specialist, deployed the

ENG systems with the cooperation of Lufthansa

Technik engineers, using TANDBERG Television’s

transmission and receiving solutions alongside

AVS’ own microwave transmission equipment.

During a test flight from Hamburg to Frankfurt, a

camera crew onboard the aircraft filmed VIP

passengers as it made its flight across Germany.

Both the video and audio received were of high

quality, with no picture ghosting and multi-

pathing - issues most commonly associated with

mobile broadcasting.

Enabling airlines to broadcast live reports from

airborne flights opens up a whole new world of

broadcasting opportunities. For example, airlines

can broadcast live reports while on the move,

which would be very valuable from a security

perspective and in the event of a disturbance on

board would enable ground support staff to know

exactly what is happening, as it happens. Service

enhancing and income generating devices, such

as videophones, can be introduced for passenger

and crew use and in-flight entertainment can be

enhanced with live news and events transmitted

from the ground. Moreover, TV programme

makers can include live footage from the air into

their programmes, ideal for fly-on-the wall

‘DocuSoaps’ and great for airborne news reports

and interviews.

TANDBERG Television works withleading mobile contributioncompanies around the world,including:

• Asia Pacific Broadcast Union (ABU)• BBC• CBC• Deutsche Telekom• European Broadcast Union (EBU)• FOX• NBC

“TANDBERG Television’s D-ENG technology has already been proven with moving

vehicles such as cars, buses, trams, boats, helicopters, and from motorbikes

travelling through long tunnels. Now, the addition of delivering live materials from

the sky confirms that this is the most robust way of delivering high quality footage

on the move.”

Reinhard Kuhn, Managing Director of AVS.

04 Case study:

TANDBERG Television takes to the skies

Germany

Annual Report 2000 30

Annual Report 200031

Delivering the digital future

There is no doubt that the turn of the new millennium also saw

the beginnings of a transformation to the content delivery

industry. AOL’s acquisition of Time-Warner indicated the future

direction of Internet service operators and was a timely reminder

of the essential symbiotic connection between content and

delivery. Many broadcasters invested heavily in the Internet, and

new infrastructure was rolled out to deliver both broadcast and

Internet content with the accessibility of the Internet and the

reliability and performance of broadcasting. Alongside this, more

digital television systems were rolled out than ever before. For

both TANDBERG Television and our customers, 2000 was a year

for developing new opportunities within a complex, dynamic

market place.

While the growth of digital broadcast platforms, such as cable,

satellite and terrestrial has increased the scope of TV, the

television set is no longer the only mass-market receiver of

broadcast content. New routes to the consumer, such as IP and

broadband, coupled with devices such as the PC and PDA

(personal digital assistant), have widened the opportunities for

content delivery, while at the same time adding new degrees

of complexity to the transmission of video, audio and data.

Clearly, more digital platforms, channels and a wider spread of

devices means increased demand for content. And competition

between those platforms, channels and devices leads to

increased demand for highly differentiated content; for example

live and timely content for news and event coverage, and

differentiated service offerings such as interactivity. In terms

of broadcast systems demand, this translates to increased

gathering of content, increased exchange and re-use of content,

and increased complexity of delivery solutions to meet the new

interactive service requirements. In addition, advances in

infrastructure technology have led to whole new delivery paths

over which valuable content and services can be offered.

The bottom line opportunity for TANDBERG Television is in the

growing requirement for professional solutions to enable the

collection and delivery of content across multiple platforms to

multiple devices. As new infrastructure is built to distribute

content and deliver new services such as interactive TV, there is a

technology demand for highly cost effective, integrated solutions

that can seamlessly handle the complexities of multi-platform

delivery. Moreover, the need to create once, distribute

everywhere (CODE) has created a market for solutions which

bridge the broadcast and broadband worlds.

During 2000, we leveraged our technology and R&D skills to set

the pace with a number of key technology innovations. Three

key highlights included:

• The launch of the world’s first broadcast distribution system

using IP networks. These systems have already been deployed

in some of the world’s first trials and we have worked with

organisations, such as Telenor, to demonstrate the reality of

IP broadcast services;

• The continuing deployment of our world leading Radio

Frequency (RF) technology expertise, already used in digital

terrestrial TV systems around the world, to produce innovative

solutions for Digital Electronic News Gathering and explore

new opportunities in broadband wireless access markets;

• The development of new innovations to add-value in our

traditional MPEG-2 broadcast segments, with new applications

for increasing bandwidth efficiency and managing large-scale

broadcast systems.

Broadcasters and content providers alike have recognised that in

order to maintain the upper hand in this new multi-platform

world, they need to establish strong technology partnerships and

to use delivery innovation to their best advantage. We believe

that TANDBERG Television is well placed to continue to meet the

needs of our traditional broadcast customers, as well as deliver

attractive solutions for the emerging new media markets.

Looking Forward

Annual Report 2000

Our strong broadcast experience and scalable broadcast systems

expertise fits solidly within the convergence between the IP and

broadcast industries, enabling the delivery of digital content.

Our experience of building sophisticated solutions for the most

challenging digital delivery mechanisms to date - those used

for Television - provides us with a great advantage in providing

solutions for interactivity and the emerging multi-platform

environment of IP/broadband markets.

Our core strategy of offering customer choice through open and

versatile solutions has paid off and positioned us as one of the

preferred suppliers in all our operating segments. In addition, our

capability as innovators has meant that we are the first port of call

for solutions to the challenges of the new market environment.

Across our core business segments we continue our commitment

to total solution provision, which we have extended through the

formation of a number of significant alliances, with companies such

as Cisco, Logic Innovations and SkyStream. Looking forward we

aim to continue the in-roads we have made into broadband and

wireless markets whilst expanding our systems capability. The

new products we are launching in 2001 will keep us at the forefront

of technical innovation and strengthen our focus on end-to-end

system solutions. We anticipate building new relationships,

which increase our solutions offering and extend our global

market presence.

Underlying this will be our continued commitment to new

technology development and to our award winning R&D

operation. We have the advantage of employing some of the

brightest brains in digital broadcasting and media delivery in

the world. We will continue to invest in this knowledge capital

to create cutting-edge solutions to enable the new media age,

just as we have transformed the world of broadcasting over

the past ten years.

Jeremy Thorp, Chief Technology Officer

32

TANDBERG Television ASA and

TANDBERG Television Systems AS

Philip Pedersens vei 20PO Box 3321326 LysakerNorway

Tel. + 47 67 116 200Fax. + 47 67 116 201

TANDBERG Television Ltd

Strategic ParkComines WayHedge EndSouthampton SO30 4DAUnited Kingdom

Tel. + 44 2380 484 000Fax. + 44 2380 484 203

TANDBERG Television Inc

12633 Challenger ParkwaySuite 250OrlandoFL 32826USA

Tel. + 1 407 380 7055Fax. + 1 407 380 6691

TANDBERG Television Ltd

901-903 Tower 11 Lippo Centre89 QueenswayAdmiraltyHong Kong

Tel. + 852 2899 7000Fax. + 852 2899 7100

TANDBERG Television Pty Ltd

Level 6Westfield Tower100 William StreetEast SydneyNSW 2011Australia

Tel. + 61 2 9356 8599Fax. + 61 2 9356 8566

TANDBERG Television GmbH

Freisinger Strasse No 185737 IsmaningGermany

Tel. + 49 89 96 999870 Fax. + 49 89 96 999888

For further investor information,please contact

email: investor@tandbergtv.com

Web site: www.tandbergtv.com

TANDBERGTelevision