TANDBERG Reports First Quarter 2008 Results

Revenue of 178.1 MUSD and Operating Profit of 37.4 MUSD in 1Q08
OSLO & NEW YORK--(Business Wire)--
TANDBERG(R) (OSLO:TAA.OL), today announced unaudited financial
results for the first quarter ended March 31, 2008.

Overview of 1Q08:

-- Revenue of 178.1 MUSD with volume of 15,077 units

-- Operating profit of 37.4 MUSD and pre-tax profit of 34.7 MUSD

-- Cash flow from operations of 23.7 MUSD

FINANCIALS

First quarter revenues were 178.1 MUSD compared with 128.5 MUSD in
the same quarter last year, representing 38.7% year-over-year growth.
Gross margin for the quarter was 65.6%, compared with 67.2% in the
same quarter last year. Selling, general & administrative (SG&A)
expenses for 1Q08 totaled 69.8 MUSD, compared with 51.6 MUSD in the
same quarter last year. Operating profit was 37.4 MUSD compared with
29.2 MUSD in the same quarter last year. Earnings per share (after
tax) were 0.221 USD in 1Q08 compared with 0.195 USD in the same
quarter last year.

The Company generated cash flow from operations of 23.7 MUSD in
the quarter which after a net cash outflow from investments and
financing of 49.1 MUSD, gave a total cash outflow of 25.4 MUSD. As of
March 31, the Company had a cash balance of 59.6 MUSD and an equity
ratio of 66.4%.

OPERATIONS

Reviewing first quarter results, Fredrik Halvorsen, Chief
Executive Officer, stated, "Our customers report that video is moving
from a nice-to-have to an essential tool for transforming their
businesses. In addition, our alliance partners recognize the value of
integrating TANDBERG video into their unified communications
platforms. The Company's solid performance in the first quarter
reflects this increasing importance of video communication for our
customers and our strategic partners.

"In the quarter, TANDBERG delivered interoperability with
Microsoft Office Communications Server 2007, enabling users of
Microsoft Office Communicator 2007 to seamlessly connect face-to-face
with other team members that use TANDBERG room-based video and
telepresence systems. The Company also announced development of the
first high-definition webcam for Microsoft, enabling high-definition
mass adoption of video, and licensed the Microsoft RT Video codec and
Microsoft RT Audio codec. In addition, Nortel and TANDBERG announced
joint delivery of fully-managed telepresence and high-definition (HD)
videoconferencing solutions to enterprises worldwide.

"The Codian acquisition significantly strengthened the total
solution and credibility within the infrastructure space. The
integration of the two organizations has been a success and is
progressing ahead of plan."

MARKETS

In 1Q08, TANDBERG sold 15,077 units compared with 12,866 units in
the same quarter last year, a 17.2% increase. The Company experienced
significant growth of 56% in EMEA, and noted 22% growth in the
Americas.

AMERICAS

Revenue in the Americas during 1Q08 totaled 80.4 MUSD compared
with 65.9 MUSD the same quarter last year. Regional and vertical
diversification enabled a steady performance. Canada performed well,
while Latin America executed below target. Select global accounts
showed countercyclical behavior in the quarter.

The Theatre saw continued traction in value-based selling, and
customers responded favourably to interoperability with Microsoft OCS.
Green initiatives are gaining traction across the Americas' client
base.

The Americas team will continue to focus on selling infrastructure
solutions and to execute on new channel programs. In preparing for
2H08, the Theatre will continue to ramp up the Federal sales and
channel team.

EMEA

Revenue in EMEA during 1Q08 totaled 77.7 MUSD, compared with 49.8
MUSD in the same quarter last year. The Theatre executed well across
all regions, with particularly strong performance in Spain, Benelux
and the Nordic region.

The EMEA Channels team showed steady progress in developing
Systems Integrator and Service Provider partners. A new and more
scalable organization, including a strengthened management team,
provides a good foundation for continued growth.

The Theatre is continuing to build out the team and expand
geographically, and will focus on Channels execution to drive sales of
infrastructure products.

ASIA PACIFIC

Revenue in APAC during 1Q08 totaled 20.0 MUSD, compared with 12.7
MUSD in the same quarter last year. The current performance in APAC
reflects investment in the region. A new set of investment in channels
and organization is needed for growth and sustainability. South Asia
continued its strong performance, concluding the quarter with a
successful technology office opening in India.

STRATEGIC INITIATIVES

TANDBERG is establishing a distinct position as a provider of
high-definition video and telepresence. Within the expanding unified
communications market, IP telephony, service provider and software
players are looking to video as a key new offering for their
customers.

To leverage this market opportunity, TANDBERG has laid out the
following priorities for 2008:

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1) Capture the market expansion by developing global services
capabilities, executing on our channel strategy and investing in
productivity-based selling and marketing;

2) Deepen Strategic Partnerships through advancing the strategies of
VOIP players, continuing to lead in seamless Microsoft
integration, and developing a credible service provider partnering
proposition;

3) Enable True Unified Communications through leadership in scalable,
robust infrastructure, improving ease of use, and developing
telepresence grade network solutions.
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OSLO and NEW YORK, April 17, 2008
The Board of Directors of TANDBERG asa

Jan Chr. Opsahl (sign.) Fredrik Halvorsen (sign.)
Chairman Chief Executive Officer
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WEBCAST/CONFERENCE CALL DETAILS

Today at 5:00 pm Central European Time and 11:00 am Eastern Time,
Fredrik Halvorsen, Chief Executive Officer, will host a live
webcast/conference call from Oslo, Norway. Additionally, a PowerPoint
presentation will accompany the webcast /conference call. To access
the webcast, please visit: https://tandbergevents.webex.com

For those who prefer to dial-in, the conference call can be
accessed at +1.617.614.2715 (international), +1.800.659.2090 (U.S.
callers) and 0808.234.7616 (U.K. callers). The audience passcode for
the call is TANDBERG. An online archive of the broadcast will be
available within one business day.

For further information please contact Elin Nokleby, ph. + 47 98
28 98 04.

Second quarter results will be presented on July 14, 2008 at 5:00
pm CET / 11:00 am ET

FINANCIAL STATEMENTS - BASIS FOR PREPARATION

The enclosed consolidated condensed financial statements have been
prepared in accordance with IAS 34, "Interim Financial Reporting".

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation used in the
preparation of the financial statements are consistent with the
policies used in the annual financial statements for the year ended
December 31, 2007. The enclosed consolidated condensed financial
statements should be read in conjunction with the 2007 annual
financial statements, which include a full description of the Group's
accounting policies.

ABOUT TANDBERG

TANDBERG is a leading provider of telepresence, high-definition
videoconferencing and mobile video products and services. The Company
has dual headquarters in New York and Oslo. TANDBERG designs, develops
and markets systems and software for video, voice and data
communication. The Company provides sales, support and value-added
services in more than 90 countries worldwide. TANDBERG is publicly
traded on the Oslo Stock Exchange under the ticker TAA.OL. Please
visit www.tandberg.com for more information.

TANDBERG is a registered trademark or trademark in the U.S. and
certain other countries. All other trademarks are property of their
respective owners.

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TANDBERG GROUP, JANUARY - MARCH 2008 (IFRS - non audited figures)

PROFIT AND LOSS JAN - MAR JAN - DEC

Figures in USD million 2008 2007 2007
----------------------------------------------------------------------

Operating revenues 178.1 128.5 630.5
Cost of goods sold 61.3 42.2 211.7
Operating expenses 69.8 51.6 245.7
Depreciation 9.6 5.5 27.0
----------------------------------------------------------------------
Operating profit 37.4 29.2 146.1
Net financial items (2.7) 0.2 (4.1)
----------------------------------------------------------------------
Profit before tax 34.7 29.5 142.0
Tax* 9.7 8.3 39.6
----------------------------------------------------------------------
Profit after tax 25.0 21.2 102.4

* Estimated tax for quarterly results is 28%
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QUARTERLY RESULTS 2007 2008
Q1 Q2 Q3 Q4 2007 Q1
----------------------------------------------------------------------

Operating revenues (USD million) 128.5 143.8 165.3 192.9 630.5 178.1
Operating profit (USD million) 29.2 33.3 38.7 44.9 146.1 37.4
Operating margin (%) 22.8 23.2 23.4 23.3 23.2 21.0
Pre-tax profit margin (%) 22.9 22.4 20.0 24.3 22.5 19.5
EPS after tax (USD) 0.195 0.213 0.218 0.297 0.930 0.221
EPS after dilution (USD) 0.193 0.210 0.215 0.294 0.918 0.219
*T

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SEGMENT INFORMATION

JAN - MAR 2008
----------------------------------------------------------------------
Figures in USD Unallocated/
million Americas EMEA APAC Products Eliminations Total
----------------------------------------------------------------------
Operating revenues
Endpoints 56.8 55.2 11.6 - - 123.5
Network 11.4 12.4 5.4 - - 29.1
VAS 12.2 10.2 3.1 - - 25.5
----------------------------------------------------------------------
Total 80.4 77.7 20.0 110.2 (110.2) 178.1
----------------------------------------------------------------------
Operating profit 1.7 10.1 (0.1) 30.7 (5.0) 37.4
----------------------------------------------------------------------

JAN - MAR 2007
----------------------------------------------------------------------
Figures in USD Unallocated/
million Americas EMEA APAC Products Eliminations Total
----------------------------------------------------------------------
Operating revenues
Endpoints 49.3 38.7 8.6 - - 96.6
Network 7.8 5.0 2.2 - - 15.1
VAS 8.7 6.1 1.9 - - 16.7
----------------------------------------------------------------------
Total 65.9 49.8 12.7 87.6 (87.6) 128.5
----------------------------------------------------------------------
Operating profit 3.3 6.0 (0.7) 27.1 (6.4) 29.2
----------------------------------------------------------------------

JAN - DEC 2007
----------------------------------------------------------------------
Figures in USD Unallocated/
million Americas EMEA APAC Products Eliminations Total
----------------------------------------------------------------------
Operating revenues
Endpoints 235.9 177.0 48.4 - - 461.3
Network 43.1 33.2 9.2 - - 85.5
VAS 43.3 31.0 9.4 - - 83.7
----------------------------------------------------------------------
Total 322.3 241.2 67.0 390.8 (390.8) 630.5
----------------------------------------------------------------------
Operating profit 21.0 27.5 1.1 123.1 (26.6) 146.1
----------------------------------------------------------------------
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BALANCE SHEET 31 MAR 31 DEC

Figures in USD million 2008 2007 2007
----------------------------------------------------------------------

ASSETS
Non-current assets
Intangible assets
Goodwill, patents and development 386.2 86.9 385.0
Deferred income tax assets 6.1 11.4 7.1
Tangible assets 20.8 12.4 20.0
Financial assets - - -
Total non-current assets 413.1 110.7 412.1

Current assets
Inventory 52.7 41.3 45.6
Accounts receivable 125.8 85.9 124.0
Other current assets 14.8 10.2 10.2
Cash and bank deposits 59.6 140.3 85.2
Total current assets 252.9 277.8 265.0

TOTAL ASSETS 666.0 388.5 677.1

EQUITY AND LIABILITIES
Equity
Share capital 12.3 13.4 12.3
Treasury shares (0.3) (2.0) -
Share premium 144.0 29.1 142.1
Other equity 286.2 200.0 280.7
Total equity 442.2 240.5 435.1

Non-current liabilities
Non-current liabilities 22.0 1.0 21.7
Total non-current liabilities 22.0 1.0 21.7

Current liabilities
Accounts payable 46.7 32.4 44.0
Tax deductions and duties payable (0.5) (1.6) (0.7)
Taxes payable 22.8 26.5 30.3
Other current liabilities 132.8 89.6 146.7
Total current liabilities 201.8 147.0 220.3

TOTAL EQUITY AND LIABILITIES 666.0 388.5 677.1

CHANGES IN EQUITY JAN - MAR JAN - DEC

Figures in USD million 2008 2007 2007
----------------------------------------------------------------------

Equity as of 1 January 435.1 227.0 227.0
Repurchase of shares (net) (21.5) (9.9) (9.9)
Dividend - - (14.6)
Proceeds from share issue - 0.1 114.1
Profit after tax 25.0 21.2 102.4
Share-based payments 1.0 2.7 9.1
Currency translation differences 2.6 (0.5) 7.0
Equity as of end of period 442.2 240.5 435.1
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CASH FLOW ANALYSIS JAN - MAR

Figures in USD million 2008 2007
----------------------------------------------------------------------

Cash flow from operations
Profit before tax 34.7 29.5
Taxes paid (18.7) (12.8)
Ordinary depreciation/ amortization 3.8 2.0
Amortization of capitalized development 5.8 3.5
Share-based incentive program 1.5 2.7
Change in receivables/ payables/ inventories (6.2) (5.8)
Non-recurring settlement costs - (12.0)
Change in other accounts (0.6) 2.4
Effect of changes in exchange rates 3.4 0.5
-------------
Net cash flow from operations 23.7 9.9

Cash flow from investments
Investments in tangible/ intangible assets (2.5) (3.6)
Capitalized development (7.4) (5.5)
Investments in subsidiaries (17.8) -
-------------
Net cash flow from investments (27.7) (9.1)

Cash flow from financing
Proceeds from share issue - 0.1
Repurchase of shares (21.4) (9.9)
Dividend paid - -
-------------
Net cash flow from financing (21.4) (9.8)

Net change in liquid assets during the period (25.4) (9.1)
Liquid assets opening balance 85.2 149.6
Effect of exchange rate on cash (0.2) (0.1)
Liquid assets at end of period 59.6 140.3
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TANDBERG
Elin Nokleby, + 47 98 28 98 04

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