ETHICS

KONGSBERG's attitudes to ethics

KONGSBERG's corporate Code of Ethics emphasises that all employees and the Group's Board of Directors are to maintain high ethical standards in the performance of their duties. The Code is first and foremost a tool designed to govern corporate conduct and culture. The text is also distributed to all partners, suppliers and agents, and is appended to all the Group's contracts. We expect contracting parties to maintain the same ethical standards as we set for ourselves.

Revised Code of Ethics

In early 2008, KONGSBERG revised its corporate Code of Ethics. The Group's policy is that the Code will be evaluated and revised, if so required, every second year. We do this to keep up-to-date on general developments in this field. The main changes are related to trafficking, requirements for ethical standards on the part of our suppliers and our focus on greenhouse gas emissions. A new point has also been added regarding the use of agents.

It is important that the work involving ethics and attitudes is carried out on a continuous basis. New in-house programmes to promote our corporate Code of Ethics will be initiated in 2008.

The Ethics Council

The Group has an Ethics Council which held two meetings in 2007. There were no reports of breaches or suspected breaches of the Code in 2007. The Group has special routines for the reporting of breaches of KONGSBERG's corporate Code of Ethics, and has appointed two ombudsmen.

KONGSBERG is opposed to corruption

KONGSBERG is opposed to all forms of corruption. Our attitudes to corruption are clearly expressed in KONGSBERG's corporate Code of Ethics, our adherence to the UN Global Compact and our membership of Transparency International. We actively address anti-corruption issues in our two business areas, both of which operate in markets that are susceptible to corruption.

Risk assessment

In 2008, KONGSBERG will perform risk assessments in several areas other than those in the field of finance, e.g. corporate social responsibility. This will be the first time KONGSBERG conducts such a systematic evaluation.

Anti-corruption programmes

Many of the Group's employees have undergone the Group's ethics programme, which includes a section on corruption. Over the past year, the Group has hired more than 1 000 new employees, at the same time as the corporate Code of Ethics has been revised. This calls for another review of the Code of Ethics and the anti-corruption programmes.

Sanctions

In 2007, there were no reported breaches of the corruption provisions that resulted in the termination of employment. Nor were there any cases in which contracts were not signed or renewed as a result of a breach of the Group's anti-corruption provisions.