Milestone Validates Company’s Position as Market Leader in Video Products

CHELMSFORD, Mass. – (October 25, 2007) – Axis Communications announced today it has delivered one million network cameras since the first camera was launched 11 years ago.  Sales figures for the Video product segment increased 40 percent in the first half of 2007, demonstrating increased demand in network video products for various security installations.

“The market for network video products is growing about 40 percent annually,” says Fredrik Nilsson, general manager, Axis Communications. “The enormous interest has helped position us as the technical and market leader and has greatly contributed to the development of the company in recent years. We are proud of our achievement and are thankful for the trust our customers have shown in us.”

Closed-circuit systems are giving way to open systems like Axis’ network systems that can be fully integrated. Companies are also realizing the added benefits of network video such as scalability, remote access and a more cost effective system.

“We are finding companies in a variety of industries are transitioning from analog to digital technology, and our projects are increasing in scope,” says Nilsson. “This is especially true of installations in train stations, schools, stores and airports worldwide.”

Since the launch of the first network camera, the AXIS 200 in 1996, Axis Communications has introduced a large number of network cameras and currently has the market’s broadest product portfolio. The company devotes considerable resources to research and development in order to anticipate customer needs. Last year, Axis invested US $24.4 million and had 160 employees dedicated to R&D initiatives. Today, the company is focusing on solutions such as intelligent video, which offers the possibility to recognize unexpected events or movement.

About Axis Communications
Axis is an IT company offering network video solutions for professional installations. The company is the global market leader in network video, driving the ongoing shift from analog to digital video surveillance. Axis products and solutions focus on security surveillance and remote monitoring, and are based on innovative, open technology platforms.

Axis is a Swedish-based company, operating worldwide with offices in 18 countries and cooperating with partners in more than 70 countries. Founded in 1984, Axis is listed on the OMX Nordic Exchange, Large Cap and Information Technology. For more information about Axis, please visit our website at www.axis.com.