Lysaker, 6 May 1998  

The Norman Group had net revenues of NOK 33.7 million in the 1^st quarter 1998, an increase of 43% on the 1^st quarter 1997 and marginally below the seasonally high 4^th quarter 1997 net revenues of NOK 35.4 million. The 1^st quarter 1998 operating loss of NOK 8.7 million was in line with expectations and a significant improvement on the operating loss of NOK 17.6 million in the 1^st quarter 1997. The Board is satisfied that the large increase in 1^st quarter 1998 net revenues will be the basis for continuing growth throughout the year and a positive result for 1998.

Explaining the 1^st quarter 1998 operating loss in more detail, Managing Director, Gunnel B. Wullstein highlighted its three main components. A loss from normal operations of NOK 2.6 million, a non-recurring loss of NOK 3.6 million from the US-based R&D and sales operations where a final restructuring is expected to be completed by the end of the 2^nd quarter 1998, and the specific 1^st quarter costs of NOK 2.5 million relating to the CeBiT trade fair in March. All of these costs were as expected and will not adversely impact on company’s ability to achieve positive result for the year as a whole.

During the 1^st quarter 1998, Norman has completed the acquisition of the following companies; SHARK BV, a leading Dutch distributor of virus control products with a 20% local market share; ESaSS BV, the Dutch R&D company and distributor of the ThunderByte virus control software; and Norman AG, the Swiss distribution company in which Norman already had a 30% stake. These acquisitions confirm Norman’s stated aim of strengthening its position in the European market through increased market share and aggressive expansion of its distribution network. The full effect of these acquisitions will commence in the 2^nd quarter 1998.

New products have been developed and released, and continue to achieve excellent test results. These include Norman Virus Control for Microsoft Exchange and the Norman Security Authentication Server for Smart Card; products with considerable revenue-generating potential.

Enclosed is a summary of the preliminary financial statements for the 1^st quarter 1998.

For further information, please contact Gunnel B. Wullstein, Managing Director, Norman Data Defense Systems Holding ASA, tel +47 67 58 99 30 / www.norman.no/

Norman Data Defense Systems is one of the world’s leading companies within the field of computer security. With products for risk analysis, virus control, access control, encryption, back-up, firewalls and data recovery, the company plays an important role in the data industry. Norman’s products have more than 6 million users. Norman Data Defense Systems has approximately 200 employees and is represented by subsidiaries and strategic alliances in USA, Europe, Asia and Australia. The company is headquarted at Lysaker outside Oslo, Norway.

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Consolidated income statement for the 3 months ended 31 March 1998

(NOK 1 000)	1Q98	1Q97		1997
	unaudited	unaudited		audited
Net revenues	33,703	23,504		112,289
Cost of net revenues	4,044	3,205		12,669
Personnel costs	20,484	16,889		70,741
Other operating & admin expenses	15,451	18,764		68,438
Depreciation & amortisation	2,539	1,974		7,933
Bad debt expenses	-94	238		730
Total operating expenses	42,424	41,070		160,510
Operating result	-8,721	-17,566		-48,221
Share of result in affiliated companies	-2,083	-2,714		-11,447
Net financial items	562	1,598		-14,076
Result before tax	-10,242	-18,682		-73,744
Tax	448	-		1,507
Minority interest	220	-50		394
Result for the period	-10,910	-18,632		-75,645

Analysis of net financial items

(NOK 1 000)	1Q98	1Q97		1997
Profit/(loss) on sale of investments	487	894		-6,784
Other financial income	151	3,523		5,525
Expenses relating to stock exchange listing	-	2,583		8,891
Other financial expenses	76	236		3,926
Net financial items	562	1,598		-14,076

Analysis of research & development costs included in total operating expenses

(NOK 1 000)	1Q98	1Q97		1997
Research & development costs	5,120	9,101		37,142
Total operating expenses	42,424	41,070		160,510

Please note that fully consolidated income statement and balance sheet was not prepared as at 31 March 1997; a period prior to the company’s listing on the Oslo Stock Exchange. The income statement for the 3 months to 31 March 1997 set out above was prepared for and published within the Oslo stock exchange listing prospectus.

Consolidated balance sheet as at 31 March 1998

(NOK 1 000)	31 Mar 98		31 Dec 97
	unaudited

audited

Current assets Cash

16,841

20,920

Shares and other investments

9,240

11,302

Accounts receivable

16,374

19,873

Other short term receivables

14,398

7,950

Inventory

3,179

2,976

60,032

63,021

Long term assets Shares in affiliated companies

34,602

36,300

Other shares

14,285

14,413

Other long term receivables

1,943

5,914

Tangible fixed assets

22,526

20,481

Goodwill

39,068

9,556

Other intangible assets

7,665

1,085

120,089

87,749

180,121

150,770

Current liabilities Accounts payable

10,343

5,250

Provisions for expenses

6,917

7,285

Taxes payable

1,085

1,131

Deferred income - current

17,023

12,199

Other current liabilities

16,992

11,815

52,360

37,680

Long term liabilities Deferred income - long term

386

100

Other long term liabilities

1,888

1,438

2,274

1,538

Minority interest

2,718

2,043

Equity Share capital

86,905

80,000

Other reserves

35,864

29,509

122,769

109,509

180,121

150,770

 

Lysaker, 6 May 1998

The Board of Directors of Norman Data Defense Systems Holding ASA

J. Arthur Olafsen Gunnel Berdal Wullstein Chairman             Managing Director