Videoconferencing Industry News

Revenue of 192.9 MUSD and Operating Profit of 44.9 MUSD =
in 4Q07

OSLO and NEW YORK, January 31, 2008 – =
TANDBERG=AE (OSLO: TAA.OL), today announced unaudited financial results =
for the fourth quarter ended December 31, 2007.

Overview of 4Q07:

Revenue of 192.9 MUSD with volume of 16,787 units
Operating profit of 44.9 MUSD and pre-tax profit of 46.9 MUSD
Cash flow from operations of 49.9 MUSD driven by continued strong =
working capital management

FINANCIALS
Fourth quarter revenues were 192.9 =
MUSD compared with 130.8 MUSD in the same quarter last year, =
representing 47.5% year-over-year growth.  Gross margin for the =
quarter was 66.2%, compared with 66.6% in the same quarter last year. =
Selling, general & administrative (SG&A) expenses for 4Q07 totaled 74.2 =
MUSD, compared with 50.8 MUSD in the same quarter last year. Operating =
profit was 44.9 MUSD compared with 31.5 MUSD in the same quarter last =
year.  Earnings per share (after tax) were 0.297 USD in 4Q07 =
compared with 0.214 USD in the same quarter last year. 

For the full year, revenue totaled 630.5 MUSD in 2007 compared with =
419.7 MUSD in 2006, or 50.2% growth.  Operating profit was 146.1 =
MUSD for 2007 and 81.8 MUSD for 2006.  The Company generated cash =
flow from operations of 49.9 MUSD in the quarter which after a net cash =
outflow from investments and financing of 15.0 MUSD, gave a total cash =
inflow of 34.9 MUSD.  As of December 31, the Company had a cash =
balance of 85.2 MUSD and an equity ratio of 63.6%. 

FINANCIAL TABLES
 Click for financial tables.

OPERATIONS
Reviewing fourth quarter results, =
Fredrik Halvorsen, Chief Executive Officer, stated, “Video is becoming a =
natural, integral part of communication for leading organizations.  =
TANDBERG’s solid growth in the fourth quarter reflects the increasing =
adoption of video.  With the industry’s broadest range of =
endpoints, the Company executed well in meeting customer demands for =
high definition video and telepresence.

“With the demand for video growing within organizations, the need for =
scalable infrastructure and integration with other technology platforms =
is growing.  TANDBERG recently announced a highly scalable new =
gateway, the first new product resulting from the September acquisition =
of Codian. In addition, TANDBERG enhanced its total solution offering =
with an upgrade to its Content Server that makes recording video for =
anytime viewing even simpler.

“Cementing its industry leadership, TANDBERG continues to invest in =
technology, sales and marketing.”

MARKETS
In =
4Q07, TANDBERG sold 16,787 units compared with 12,744 units in the same =
quarter last year, a 32% increase.  In 2007, 58,563 units were sold =
compared with 40,118 in 2006, a 46% increase.

The Company delivered solid performance across all Theatres.  In =
a changing global economy, strong geographic and vertical market =
diversification allowed the company to execute well.

AMERICAS
Revenue in the Americas Theatre during =
4Q07 totaled 86.7 MUSD compared with 68.9 MUSD the same quarter last =
year.

The Americas experienced regional variances in sales execution.  =
While some large enterprise customers, particularly on the East Coast, =
were distracted by a more turbulent environment, strong performance =
continued in the Federal, state and local government, and Pacific =
Northwest regions.

The Americas is well-diversified across 11 regions including Canada, =
Central and Latin America, and matrixed against Enterprise, Federal, =
state and local government, education and medical verticals. 

Customers in the Theatre have responded favourably to the new Codian =
solutions.  Furthermore, with full Codian sales integration since =
January, cross-training for sales teams and channels has been =
intensified.

EMEA
Revenue in EMEA during 4Q07 totaled 85.5 =
MUSD, compared with 51.5 MUSD in the same quarter last year.  The =
Theatre executed very well in 4Q.  Softness in the UK was more than =
offset by strong performance in Northern and Southern Europe. 

The EMEA team saw solid development with Systems Integrators and =
Service Providers, including global agreements signed with British =
Telecom and HP.  The expanded infrastructure solution has been well =
received.  Continued value selling and traction with large accounts =
contributed to the strong performance in the quarter.  To maintain =
momentum, the EMEA Theatre will further build out the team, expand =
geographically and increase focus on service sales.  Full =
integration of Codian sales teams commenced in January.

ASIA PACIFIC
Revenue in APAC during 4Q07 totaled =
20.7 MUSD, compared with 10.4 MUSD in the same quarter last year.  =
Theatre performance was on track for the quarter.  While several =
large opportunities in North Asia closed in the quarter, continued =
investment in infrastructure and channels is required for =
sustainability.  Singapore and Australia continued to perform =
well.

STRATEGIC INITIATIVES
TANDBERG is establishing a =
distinct position as a provider of high-definition video and =
telepresence within the unified communications space.

The first new product developed by the Codian team was recently =
introduced, just four months after the acquisition was completed.  =
The TANDBERG Codian Gateway connects ISDN to IP and enables 1000 =
concurrent video calls.  It is the highest capacity high-definition =
ISDN gateway in the market, and in a single chassis.

To capture the converged IP communication opportunity, TANDBERG =
continued to invest in R&D, sales and marketing.

TANDBERG has been recognized for its industry leadership and =
innovation over the last year.  The Company was the recipient of =
the 2008 Frost & Sullivan Global Video Conferencing Company of the Year =
Award for its excellence in product innovation as well as market =
execution that has accelerated the adoption of video conferencing.  =
The TANDBERG Video Communication Server, a key component of the =
Company’s SIP strategy, received the Internet Telephony Product of the =
Year Award 2007.  And VC Insight’s Most Innovative =
Videoconferencing Technology of the Year 2007 was awarded to TANDBERG =
for Codian ClearVision, multipoint technology for superior and =
consistent visual clarity.

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 +1.617.614.4912 (international), +1.800.591.6948 (U.S. callers) and =
0808 2347616 (U.K. callers). The audience passcode for the call is =
TANDBERG.  An online archive of the broadcast will be available =
within one business day.

OSLO and NEW YORK, January 31, 2008
The Board of Directors of =
TANDBERG asa

Jan Chr. Opsahl =
(sign.)      
Chairman   

Fredrik Halvorsen (sign.)
Chief Executive Officer

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

Audited 2007 financials will be available February 14, 2008.  =
First quarter results will be released on April 17, 2008. =


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, 2006. The enclosed =
consolidated condensed financial statements should be read in =
conjunction with the 2006 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.