TANDBERG Television delivered revenues of MNOK 476.1 in 3Q05, up 21% compared to MNOK 392.6 in 3Q04 and up 4% sequentially. The gross margin was 56.3%, up from 51.4% in the same quarter in 2004, and up from 55.0% in 2Q05, due to improvements in product mix and solid margins in our traditional technologies. The company delivered operating profits of MNOK 94.7, up 71% from MNOK 55.6 in 3Q04 and up 26% sequentially. Pre-tax profit was MNOK 102.7, up from MNOK 55.5 in the same period in the previous year.

The cash balance at the end of the quarter was MNOK 914.2 and included net cash income from operations of MNOK 28.1 up from MNOK 17.8 in the same period in 2004. The company raised a net MNOK 573.6 from a share issue in the quarter. Total assets for the group were MNOK 2,513.3, with an equity ratio of 83% at 30 September 2005. Total shares outstanding at the end of the quarter were 74,267,926.

All comparable numbers above are adjusted for implementation of IFRS and include the results of N2 Broadband from 1 January 2004. Reconciliation to previously disclosed financials is provided in the appendix to this report.

Market and Products

3Q05 was focused on delivery as TANDBERG Television leveraged its technological leadership, global presence and organizational efficiencies to achieve a further record performance. The results of the company's strategic investments in the North American market became apparent as the region outperformed EMEA as the largest revenue generator and delivered 43% of group revenues for the quarter. The company announced its second order from the world's largest satellite DTH operator, DIRECTV, valued at $7.5m for MPEG-4 AVC HD compression systems, signaling the television service provider's acceleration of its HD satellite roll-out to meet growing consumer demand. TANDBERG Television's extended its IPTV leadership position with three significant orders bringing its total telco TV deployments to over 50 operators worldwide. These orders included a $5m advanced compression IPTV contract from a North American customer, the latest in a series of deployments that provide the flexibility for our customer to run AVC or VC-1 compression. The company also announced an MPEG-2/MPEG-4 AVC IPTV deployment for Dutch telco KPN and TV over DSL contract in China during the quarter. In Australia and New Zealand, TANDBERG Television announced a trio of traditional MPEG-2 system orders from Nine Network, Network Ten and Prime Television for digital TV upgrades, ENG deployment and HDTV roll-outs. The company enjoyed a strong margin performance in the quarter with an improvement from 55.0% to 56.3% sequentially. This positive result was due to an attractive mix of higher margin sales, and an improved margin performance in our MPEG-2 business as we continue to work with our suppliers to reduce costs.

TANDBERG Television was prominently visible throughout the recent IBC event in September with numerous speaking engagements, including CEO Eric Cooney's keynote presentation on the next generation drivers for digital content delivery. This major international exhibition is the broadcasting industry's second half benchmark and with attendance up 5% to over 43,000, it was clear that the broadcasters, operators and content owners were all out in force looking for technology that would give them the cutting edge in the pursuit of subscriber revenue and loyalty. HD encoding and VOD solutions, in which TANDBERG Television is the clear market leader, were a particular area of customer focus, providing improved confidence on the market's outlook. Finally, the company was recognized with four prestigious awards during the quarter for its state-of-the-art HD advanced encoding products as well as its on-demand software solutions. These awards included two from Cable & Satellite International, one from the International Association of Broadcast Manufacturers and one from the China Radio, Film and Television Company.

During IBC, TANDBERG Television showed market leading technologies that improve the quality, choice and economics of digital TV and enable HDTV, On-Demand and IPTV, in all cases demonstrating actually deployed solutions. This first-to-market lead and best-in-class technology is making TANDBERG Television the provider of choice in the increasingly complex business of television and enabling the company to maintain product margins.

Outlook

The Board is pleased with the company's successful execution of its strategic plan to date. The Board was encouraged by a quarter of top-line growth, solid gross margins and record profitability. The company's investments in the North American market have begun to produce good results across key telco, satellite and cable operators. With a strong technology portfolio and successful operational execution the Board believes the company is well placed to benefit from continued market expansion.

Basis of Preparation

The interim consolidated, financial statements have been prepared in accordance IAS 34, Interim Financial Reporting, and are covered by IFRS 1, First-time Adoption of IFRS, because they are part of the period covered by the Group's first IFRS financial statements for the year ending 31 December 2005. They have been prepared in accordance with those International Financial Reporting Standards (IFRS) and IFRIC interpretations issued and effective at the time of preparing these statements.

Up until 31 December 2004, the consolidated financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and generally accepted accounting principles of Norway (NGAAP). NGAAP differs in certain respects from IFRS. When preparing the Group's 2005 consolidated financial statements, management will amend certain accounting, and consolidation methods applied in the NGAAP financial statements to comply with IFRS. The comparative figures in respect of 2004 are restated to reflect these adjustments.

Reconciliations and descriptions of the effects of the transition from NGAAP to IFRS on the Group's equity and its net profit are provided in the notes to this release and in our press release issued on 30 March 2005.

Currency Conversion

An increasing proportion of TANDBERG Television's business is conducted in currencies other than the Norwegian kroner, especially in US $'s. This has caused the Board to perform a review to ascertain that the US $ is the optimum currency in which to present the company's financial results under IFRS reporting regulations. The Board will finalise its decision at a Board meeting in December and will report back to the Oslo Stock Exchange at that time.

Lysaker, Norway 17th October 2005

The Board of Directors of TANDBERG Television ASA

Jan Chr. Opsahl, Chairman Eric Cooney, CEO