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

Video growth and profitable

development

First half of 2004Ray Mauritsson, CEO

Axis’ two main product areas

Network Video Products Worldwide #1 position Axis’ largest product area,

69% of sales An installed base of more

than 300,000 units

Network Print Servers Worldwide #2 position 27% of Axis’ sales An installed base of more

than 2,000,000 units

Highlights: first half, 2004

Continued growth for Video Improved gross margins Profitability 10 new products launched

Financial performance: first half, 2004

Net sales: SEK 320 M (305) Currency effects had a negative

impact of SEK 19 M Operating profit: SEK 2 M (loss: 4)

Highlights: Q2, 2004

Strong growth within Video, + 36%

Restrained sales for Print New strategic agreements

Sales by quarter

Q2: Continued strong

growth in Video

MSEK

2004

Video

Other

2003

0

20

40

60

80

100

120

140

160

180

Q1 Q2 Q3 Q4 Q1 Q2

EBIT by quarter

-10

-5

0

5

10

15

20

25

30

Q1 -03

Q2 -03

Q3 -03

Q4 -03

Q1 -04

Q2 -04

MkrQ2: Gross margin:

51.7% (52.8) Operating margin:

4.7% (-2.8)

Gross margin by quarter

0

10

20

30

40

50

60

Q1 -03 Q2 -03 Q3 -03 Q4 -03 Q1 -04 Q2 -04

%

Sales: Q2, 2004

69%Print27%

Other 4%

Video

19%

33%48%

Asia

Americas

EMEA

Sales by Product Group Sales by Region

Benefits of network video

Remote access to video from any location

Low start-up and operating costs Flexible and scalable solutions

based on open standards¬ Integration possibilities

A technology shift driving growth

New generation video products

Network Cameras AXIS 210 AXIS 211 AXIS 206M Megapixel Network Camera AXIS 206W Wireless Network Camera AXIS 231D Network Dome CameraNetwork Video Decoder AXIS 292 Video Servers AXIS 241S AXIS 241QSoftware solutions AXIS Camera Station

New generation print servers

Primarily targeted at small businesses and home users

A key addition to Axis’ already broad market offering

Axis OfficeBasic USB Wireless

Strategic agreements

Axis chosen as strategic supplier of network video solutions for Honeywell

Axis begins global IP-Surveillance partnership with Securitas

Outlook 2004

Continued strong growth potential for Video

Further product launches ahead

Restrained development for Print

Goal of profitable growth remains unchanged