Norman ASA, the Norwegian data security company, increased its total revenue by 13 per cent to NOK 63.5 million in the first quarter, up from NOK 56.2 million in the same period last year. Pre tax profit ended at NOK 9.3 million, compared to NOK 8.2 million in the first quarter of 2005.

Norman achieved an EBITDA of NOK 10.0 million in the first quarter, representing an EBITDA margin of 16 per cent. In last year’s first quarter, the EBITDA was NOK 8.9 million. Earnings per share for the first quarter were NOK 0.59, up from NOK 0.52.

Norman’s revenue growth is primarily generated in Europe outside of Norway. The growth in these markets was 21 per cent in the first quarter and they are now representing 73 per cent of total turnover, while the Norwegian market in the first quarter accounted for 22 per cent. Following a negative sales development in Norway over the last couple of years, the situation in the Norwegian market now seems to have stabilized. The quarter ended with a 2 per cent increase in Norway sales, compared to the first quarter of last year. The North American market, which represents only 5 per cent of Norman’s revenues, saw a decline in the quarter.

The threats facing computer users are growing. The emergence of new computer viruses is continuing and the virus attacks are becoming more rapid and sophisticated. At the same time several vulnerabilities in Microsoft operating systems were discovered in the quarter. Norman currently identifies more than 1.200 new viruses every day. Also, the number of new threats like spyware and phishing (identity theft) on the Internet are increasing rapidly.

Norman continues to further improve its R&D and sales efforts. As planned, resources spent on R&D have increased in the first quarter and the company has capitalized NOK 1.9 million in development costs related to development of new products. A number of new products and product updates are expected in the second half of 2006. The sales organization in Norway is in the process of being reorganized and a new country manager is hired and will start 2 May 2006.

OEM agreements (Original Equipment Manufacturer), whereby companies enter into license agreements to benefit from Norman’s unique SandBox technology, are part of Norman’s main strategy. In order to improve its position in this segment, Norman is extending its US operations to California.

Norman’s financial position continues to be strong. The company has no interest bearing debt and enjoys a positive cash flow. During first quarter 2006, Norman generated NOK 17.3 million in cash from its operations. The company purchased own shares amounting to NOK 13.5 million during the quarter and total cash at the end of March 2006 was NOK 85 million.

The company had 186 employees at the end of the first quarter.

Norman expects to maintain growth and profitability also in the second quarter. Much like the first quarter, also the next quarter will be marked by renewed R&D efforts and strengthening of the organization. With new products being launched and a more targeted OEM approach from the third quarter onwards, Norman expects continued growth throughout the year.

Enclosed is a summary of the interim financial statements for the first 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).