Comrod Communication ASAQ2 Presentation

Stavanger, 27th. August 2007

Eirik S. Larsen, CEO

Kari Duestad, CFO

Ole Gunnar Fjelde, EVP and

MD Comrod AS

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Agenda

I. Key points

II. Company overview

III. Q2 Financials

IV. Summary

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Key points Q2

Continued growth in turnover

Important new contracts secured:

New contract on antennas to a major NATO country in May

New contract on masts to the US army in May

New contract with US based radio producer on antennas in June

New contract with US based radio producer on antennas in July

Good market development in all business units, high tendering activity

Preparing for higher production capacities in second half of 2007

Integration process run as planned, positive contribution from all entities

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Agenda

I. Key points

II. Company overview

III. Q2 Financials

IV. Summary

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A previous business division of Hexagon

Public listed company on Oslo Stock Exchange

Headquarter close to Stavanger

Offices and production facilities in Tau, Stavanger, Oslo and St Amand Les Eaux in France.

170 employees, whereof 86 in France

Comrod develops, manufactures and markets masts, antennas, industrial products and power supplies. Approximately 80% of sales is to the defense communication market

Comrod holds leading global market positions within antennas and masts for the defence market

Comrod Communicaton ASA – Company profile

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Masts

The Business Areas

Industrial products Power supply

Product illustration

Products

Revenues and EBITDA 2006

Type of clients

NOKm 27,2 / NOKm -1,1

OEM, defense organizations

Telescopic, sleeve, man-pack, manual and motorized versions

Key customers In defense market, key clients include Thales, DGA and US Army

NOKm 26,2 / NOKm 2,1

Utilities, industrial companies

Insulating products such as insulators, insulating poles and structural composites which are custom designed products

Defense (10% of sales) and utility and energy industry (90 % of sales). Key clients include Siemens and SCNF

NOKm 14,9 / NOKm 2,8

Defense organizations

Battery systems, technology rights acquired from Eltek ASA with exclusive rights in the defense market

In the defense market, key clients include Kongsberg Group and FMV Sweden

Manufacturing France / Norway France Outsourced to plants in Norway, Poland and China

Antennas

NOKm 129,3 / NOKm25,5

OEM, defense organizations, commercial vessels

HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems

Defense (80 % of sales) and maritime industry (20 % of sales). Key clients include ITT, Harris, Thales and Rhode & Schwarz

Norway / France

Source: Comrod Communication

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Product range include HF, VHF, UHF, dual band, GPS, multi-band antennas and antenna systems

Products are manufactured at in-house manufacturing facilities

Key attractive features of products- Superior quality, proven record- Meets the toughest demands - Flexibility

Commercial vesselsNavy

Bowman Vehicle Collection

HF 1.6-30MHz, VHF 30-88MHz, UHF 225-450MHZ

Overview of products

Business Area – Antennas (58% of revenue)

Man-pack VHF 30-88MHz

Handheld VHF 30-88MHz

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Market : Antennas

Comrod has well established leading market positions in most main EU countries and now sells to more than 60 countries

The big new contracts for the US is an important step in becoming a major player also in the US market

Total market is increasing due to new and more advanced radio communication technologies being introduced and applied

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Overview of products

Business Area – Masts (13 % of revenue)

Masts include telescopic, sleeve, man-pack, manual and motorized versions

Products are manufactured at in-house manufacturing facilities

Key attractive features of products- Easy maintenance- Standard as well as tailor made versions- Advanced control for unmanned use

Surveillance

Omaha Beach LOS (land of sight) Advanced control

Unmanned use

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Market : Masts

New contract won in June for deliveries of 30m high tactical masts to the US Army.

Mast segment is increasing due to increasing use of high band width communication where LOS systems are applied

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Include battery chargers and power supplyManufacturing outsourced to companies in Norway, Poland and China

Key attractive features of products- Demanding applications- Tailor made solutions- Both Ni Cad and Li-Ion batteries

Double Man-pack charger

Standard power supply Combined charger and power supply

1 position vehicle charger

Overview of products

Product area – Power supply (16 % of revenue)

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Market: Power Supply

Market openings into the existing sales networks of Comrod and Lerc

High activity on new tenders

Comrod in unique technology position.

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Include insulating products such as insulators, insulating poles for railroad and utilities, offshore products and custom designed structural components.

Products are manufactured at in-house manufacturing facilities

Key attractive features of products- Tailor-made solutions- Niche markets - Extensively tested and quality assured

Offshore applications

Railroad applications Insulators

Foamed pipe

Overview of products

Product area – Industrial products (13 % of revenue)

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Market : Industrial Products

Growth within Offshore Application Products, good margins.

Stable market for Other Insulator Products.

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UMS Norway – Unmanned Systems

Development and sales of UAVs (Unmanned Aerial Vehicles)

First “scaled down” prototype successfully tested from March this year

Full scale prototype to be airborne within this year

5 m wing span

5m fuselage length

Speed: 300 km/h

Flying time: 7 -9 hours

Targeting the rapidly increasing demand for tactical UAVs in the defense and civil markets

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Agenda

I. Key points

II. Company overview

III. Q2 Financials

IV. Summary

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Financial performance Q2

Substantial growth in turnover

Growth in EBIT

EBIT margin down

Good development in the Power supply business area

Good development in the Mast business area

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Q2 financials

Q2 2007 Q2 2006 Q2 2006

ProformaTotal Sales 66 300 27 740 139,0 % 47 831EBITDA 7 580 4 218 79,7 % 6 889EBIT 4 574 3 030 51,0 % 4 090EBIT % 6,9% 10,9% 8,6%

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Segment Information : Turnover per Business Area

AntennasTurnover 31 627 30 964 EBIT 508 2 436 EBIT % 2 % 8 %

MastsTurnover 16 402 4 575 EBIT 2 441 12 EBIT % 15 % 0 %

Industrial Products Turnover 9 263 7 358 EBIT 89 837 EBIT % 1 % 11 %

Power SupplyTurnover 9 025 4 933 EBIT 2 450 805 EBIT % 27 % 16 %

Q2 2007 Q2 2006 - Proforma

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Turnover per segment

31627

16402

9263

9025 Antennas

Masts

Industrial Products

Power Supply

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Cash Flow Statement

(All f igures in 1000 NOK) 30.06.2007 31.12.2006

Profit before tax 4 941 11 732Depreciation and write-downs 6 001 5 686Change in net working capital -1 407 -9 059Net cash flow from operations 9 536 8 360Net cash flow from investment activities 26 889 -122 587Net cash flow from financing activities -20 923 116 733Net change in cash and cash equivalents 15 501 2 506Cash and cash equivalents at start of period 4 184 1 678Cash and cash equivalents at end of period 19 685 4 184

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Balance sheet

30.06.2007 31.12.2006

Total Capital 253 825 271 627

Equity 88 631 18 726

Net interest-bearing liabilities 93 339 183 581

Property, Plant and Equipment 54 996 57 878

Intangible assets 65 907 67 386

Available unused credit facility 10 000 5 000

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Capital structure

91 Mill NOK long term bank loan

10 mill NOK overdraft protection

Lerc: local financing of working capital factoring agreement

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Agenda

I. Key points

II. Company overview

III. Q2 Financials

IV. Summary

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Summary and outlook 2007

New contracts strengthening our position with the major radio producers.

Positive market outlook for all business areas

Integration process in good progress – positive and dedicated efforts from all organizational units

Continued growth expected in 2007 and beyond

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Q&A

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www.comrod.com