Lysaker, 22 April 1999  

Norman shows clear improvement

The Norman Group had net revenues of NOK 44.1 million in the 1^st quarter 1999. This represented an increase of 31% on the 1^st quarter 1998, and 8% on the 4^th quarter 1998 which is traditionally the strongest quarter of the year. The operating loss of NOK 4.9 million and the loss before tax of NOK 1.8 million for the 1^st quarter 1999 were down sharply from the 1^st quarter 1998 when the operating loss was NOK 8.7 million and the loss before tax NOK 10.2 million. Cashflow from operations for the 1^st quarter 1999 was close to breakeven.

The following action has been taken in the 1^st quarter 1999 to secure sustainable revenue growth and improve profitability. Headcount reductions have been made at Norman’s loss-making international subsidiaries and the board of directors are actively driving internal processes to focus attention on Norman’s international distribution strategy, on key accounts customers, on a market-driven product strategy and on detailed cost control. In addition, the Norwegian organisation has been streamlined and Bjørn Fosli has started as the new CEO.

Moving forward, Norman’s objectives for the 2^nd quarter 1999 will be to maintain the momentum of these processes and, more specifically, to build revenue through distribution partners and from Norman’s access control product line. Furthermore, additional focus will be given to increasing revenue and profitability from Norman’s sales subsidiaries in Germany and the US. Continued attention will be given to cost control and to operational cashflow.

Enclosed is a summary of the preliminary financial statements for the 1^st quarter 1999. Figures for 1^st quarter 1998 and 31^st December 1998 have been restated and reclassified in accordance with the new Norwegian Accounting Law effective from 1^st January 1999.

For further information, please contact Svein Ramsay Goli, Chairman of the Board of Norman ASA, tel +47 67 10 97 00 / www.norman.no

Norman ASA is one of the world’s leading companies within the field of computer security. With products for virus control, access control, encryption, network security and data recovery, the company plays an important role in the data industry. Norman’s products have more than 6 million users. Norman 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.

Consolidated income statements

* Results from SHARK BV, ESaSS BV and NDDS AB have been consolidated from 1 March 1998, 1 April 1998 and 1 August 1998 respectively.

Analysis of restructuring costs

Analysis of net financial items

Analysis of research & development costs included in total operating expenses

Consolidated balance sheets

Lysaker, 21 April 1999 The Board of Directors of Norman ASA

Svein Ramsay Goli Chairman