"Net sales in 2008 were SEK 1,975 M (1,671), corresponding to annual growth of 18 percent. SEK 1,885 M was attributable to the Video product area, corresponding to growth of 23 percent within Axis' focus area. The current financial turmoil has in certain cases meant that decisions on security installations have been deferred. The market is difficult to forecast in the near-term and we are currently seeing lower activity on the global network video market. In the long-term, we continue to see great growth potential for network video products. Axis continues to offer innovative competitive products and is well-represented globally through a local presence with a large number of partners" said Ray Mauritsson, CEO, Axis Communications.

The central figures from the report as follows:

• Net sales for the year amounted to SEK 1 975 M (1,671), and to SEK 500 M (479) for the fourth quarter.
• Operating profit for the year totaled SEK 341 M (368), and SEK 49 M (104) for the fourth quarter.
• Profit before tax for the year amounted to SEK 340 M (367), and to SEK 49 M (104) for the fourth quarter.
• Profit after tax for the year totaled SEK 252 M (259), and SEK 45 M (67) for the fourth quarter.
• Earnings per share for the year amounted to SEK 3,64 (3.73), and to SEK 0,65 (0.97) for the fourth quarter.
• The Board of Directors proposes an unchanged ordinary dividend of SEK 1.25 (1.25 ordinary dividend and an extra dividend of 3.25).

The slide presentation is available on: www.axis.com/corporate/investor/interim_report.htm