Norman, the Norwegian data security company, continued its profitable growth in this year’s second quarter. Net revenues increased by 11 per cent to NOK 62.9 million, up from 56.7 million in the second quarter last year. Profitability increased even more, and the company posted pre tax profits of NOK 8.7 million for the quarter, compared to 5.6 million in the same period last year.

Norman ended the quarter at an EBITDA of NOK 9.5 million, corresponding to an EBITDA margin of 15 per cent. The numbers for last year’s second quarter were NOK 6.3 million and an EBITDA margin of 11 per cent.

For the first half of the year revenues grew by 12 per cent to NOK 126.4 million. Pre tax profits for the first half year ended at NOK 18.0 million, compared to 13.8 million in the first half of last year, an improvement of 30 per cent.

Norman’s products and services, in particular the Norman SandBox technology, experienced positive developments and feedback from the market in the second quarter. The threats against data security are growing and even becoming more sophisticated. Norman continued its strong growth in Europe outside Norway. The company is pleased to see that the short and long term measures implemented in Norway are showing results. Norman is in the process of implementing a new basis for its North American operations with a presence in California.

The first half of 2006 was marked by three focus areas for Norman: 

• More targeted R&D, as well as allocating more resources to this field. 
• Initiatives aimed at creating a more focused sales organization in Norway. 
• Further expanding the company’s OEM strategy; licensing of Norman technology to other companies.

In all of the above areas, Norman has experienced a positive development in the first as well as the second quarter. The company is in the process of expanding the applications derived from its unique SandBox technology also to other areas than virus protection. The potential in these areas is regarded as very promising.

Norman’s financial position continues to be strong. The company has no interest bearing debt and enjoys a positive cash flow. During first half of 2006, Norman generated NOK 25.5 million in cash from its operations. In the same period the company purchased own shares amounting to NOK 40 million. Total cash at the end of June 2006 was NOK 64.5 million.

The company had 185 employees at the end of the first half 2006.

Norman expects a continuing growth rate and good profitability also in the remaining quarters of 2006. The first half of the year included considerable efforts and investments in the areas mentioned above, and these are expected to yield improved results towards the end of the year. Norman still sees considerable potential within the company’s traditional area, virus protection. In addition, Norman expects the initiatives in the OEM area and also new products and services based on the SandBox technology, to contribute even further to the company’s growth and profitability.

Enclosed is a summary of the interim financial statements for the second quarter 2006.

For further information, please contact Chairman of the board Svein Ramsay Goli (+47 9075 6757) or CEO Trygve Aasland (+ 47 6710 9717 or +47 4153 9717).