Axis implements action program to ensure profitability

Axis Communications will implement an action program during the second quarter of 2001 to secure that profitability is achieved during this year. The savings are based on what is currently considered necessary and are also aimed at offsetting any possible effects of the economic slowdown that could affect Axis' sales in the US and Europe.

"Axis remains firmly committed to profitability during the second half of 2001. Through proactive efforts we want to prevent a slowdown in the economy from affecting our financial goals. The size of the measures that will be taken are based on what we are able to assess in the present situation. By cutting costs by more than 15 percent on an annual basis, we also aim to secure continued positive development of cash flow,' says Peter Ragnarsson, President and CEO of Axis Communications.

The action program includes a reduction in personnel by about 15 percent and a decrease in the number of consultants. The cutbacks affect all areas of operations within Axis.

The restructuring costs arising from this program are estimated at SEK 20 million and will be charged in the second quarter of 2001.

For further information, please contact:

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

Peter Ragnarsson, President and CEO, Axis Communications
Phone: + 46 46 272 18 00
E-mail: peter.ragnarsson@axis.com

About Axis
The Axis Communications Group, with the parent company Axis AB is a leader in network connectivity and emerging wireless Internet-based services. The company is at the forefront of developing network appliance solutions that enable people and organizations to get easy and immediate access to devices and services. Axis is one of the global leaders in several key thin server and network device markets, such as printer, storage and video connectivity, and is doing pioneering work in the rapidly expanding markets of wireless and mobile communications.
Founded in 1984, Axis employs more than 500 people worldwide, including the 59 percent owned subsidiary, Netch Technologies. Axis is headquartered in Lund, Sweden and has a total of 28 offices throughout North America, Asia and Europe.
Information about Axis can be found at http://www.axis.com

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