INTRODUCTION

The report tells about KONGSBERG's work with corporate social responsibility in 2006. Since the 2005 report, KONGSBERG has acquired the companies Gallium Visual Systems, Fantoft Process Technologies and Sense Intellifield. As for the environmental accounts, only Gallium has been included in the figures. The other companies will be included as from the 2007 report.

All companies in which we have a stake greater than 50 per cent are included in the report.

The Sustainability section of the report is divided into three main chapters: financial management, corporate social responsibility and environmental management. This report is based on the principles outlined in the Global Reporting Initiative (GRI), in accordance with the principle of the triple bottom line. This report takes its point of departure in the G3 guidelines that GRI introduced in October 2006. The guidelines contain many criteria that are beyond the scope of this report. Our ambition is eventually to report on all of the criteria in G3 that are relevant for our operations.

One of the new criteria in G3 is that the company is to report which G3 level it follows. We believe this report complies with the requirements for level B. The report has not been independently verified.

The answers regarding the indicators can be found directly in the running text or in special GRI tables. The section "The Global Reporting Index (GRI)" provides references to the individual GRI indicators and refer to the relevant sections of the report.

GRI Model

The Sustainability Report has in its entirety been reviewed by corporate management and the corporate Board of Directors.