Videoconferencing Industry News

TANDBERG Reports First Quarter 2008 =
Results    

Revenue of 178.1 MUSD and Operating Profit of 37.4 MUSD =
in 1Q08

OSLO and NEW YORK, April 17, 2008 – TANDBERG=AE =
(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%.    

FINANCIAL TABLES
Click for financial tables.

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:

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.

OSLO and NEW YORK, April 17, 2008
The Board of Directors of =
TANDBERG asa

Jan Chr. Opsahl (sign.) 
Chairman =
  

Fredrik Halvorsen (sign.)
Chief Executive =
Officer

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 TABLES
Click for full press release plus financial =
tables.

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.