Norman continues to improve

The Norman Group had net invoiced sales of NOK 50.3 million in the 2^nd quarter 1999. This represented an increase of 24% on the 2^nd quarter 1998 (which included one-off sales of NOK 4.5 million), and an increase of 8% on the 1^st quarter 1999. The operating loss of NOK 0.8 million for the 2^nd quarter 1999 was a marked improvement from the 1^st quarter 1999 when the operating loss was NOK 4.9 million. Cashflow from operations for the 2^nd quarter 1999 was NOK 6.1 million, before working capital adjustments.

Focus in the 2^nd quarter 1999 has been given to stabilising income from Norman’s international subsidiaries. This has given encouraging results, especially in Germany and the US. Norway has continued its impressive sales growth from the 1^st quarter. Efforts to increase sales in existing markets and to establish Norman in new markets via partners has resulted in distribution agreements with Ingram Micro Inc and Merkantildata for Norway and with Wickhill plc for the UK and Germany.

Norman continues to develop leading-edge products of high international quality. Norman Virus Control has been awarded another "100%-test" from Virus Bulletin and is the product with the most "100%-test" awards over time. Norman Access Control was awarded a maximum 5-stars and "best buy" approval in a recent test in Secure Computing magazine. These tests, in internationally recognised publications, provide a firm foundation for future revenue growth.

During the 2^nd quarter 1999, Ibas has launched its new "Erasure Concept" for the secure deletion of hard disk data. The market has responded positively to this concept and the first contracts have recently been signed.

Objectives for the coming quarters are to continue to build revenue from distribution partners, and recruit new partners especially in those European countries, and eventually in markets outside Europe, where Norman is not currently represented. Furthermore, focus will be given to increasing revenue from the Norman Access Control products. Continued attention will be given to cost control and to operational cashflow.

Norman will also continue its targeted investments in research and development to safeguard its leading technological position.

The board of directors and management are of the opinion that the Group will continue its positive trend into the second half-year.

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Enclosed is a summary of the preliminary financial statements for the 2^nd quarter 1999. Figures for 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 or Bjørn Fosli, President and CEO of Norman ASA, tel +47 67109700/ 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 12 million users. Norman has approximately 220 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.

Lysaker, 11^th August 1999 The Board of Directors of Norman ASA

Svein Ramsay Goli Chairman