Axis announces cost savings program

Axis Communications will initiate a cost savings program in the fourth quarter of 2003. The purpose of the program is both to balance the negative effects of a weak overall economy and to secure means for future growth as well as Axis' financial goals.

The last two years Axis has experienced growth within the Video segment, but at the same time total sales has been burdened by a weak market for the company's more traditional IT products. The slow economy has led to a continuous focus on cost control, which among other things has led to a decrease in numbers of consultants in the first half of 2003.

"Even if there are signs of slow recovery on several markets, we still see a lot of restraints in IT investments," said Ray Mauritsson, CEO of Axis. "With this in mind we have now decided to go ahead with further cut backs to secure a stable and positive long-term development."

The objective is to ensure savings of about 15 MSEK on an annual basis. Decision has been made to initiate negotiations with unions since the savings program might include staff reductions of about 10 percent of Axis' employees in Lund. The cost cuttings are estimated to be effective in 2004.

About Axis
Axis increases the value of network solutions. The company is an innovative market leader in network video and print servers. Axis' products and solutions are focused on applications such as security, surveillance, remote monitoring and document management. The products are based on in-house developed chip technology, which is also sold to third parties.

Axis was founded in 1984 and is listed on the Stockholmsbörsen (XSSE: AXIS). Axis operates globally with offices in 14 countries and in cooperation with distributors, system integrators and OEM partners in 70 countries. Markets outside Sweden account for more than 95% of sales. Information about Axis can be found at www.axis.com .

For further information, please contact:
Ray Mauritsson, CEO, Axis AB
Phone: + 46 46 272 18 34, E-mail: ray.mauritsson@axis.com

Anne Rhenman, Director Investor Relations and Corporate Communications, Axis Communications
Phone: + 46 708 90 18 29, E-mail: anne.rhenman@axis.com

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