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Mid-year EBITA of MNOK 117

Kongsberg Gruppen (KONGSBERG) posted operating revenues of MNOK 3 147 (MNOK 3 001) and an EBITA of MNOK 117 (MNOK -13) at mid-year 2005. "That translates into an operating margin of 3.7 per cent. Naturally, we are not satisfied with that. Meanwhile, it is an improvement relative to Q1, and we expect our performance to improve further during the latter half of the year. Otherwise, we had a lot of good news in Q2, including the successful NSM test, a strong influx of new orders at Maritime and splendid results at Kongsberg Protech", states Chief Executive Officer Jan Erik Korssjøen.

"Offshore & Merchant Marine continues to report strong results, posting operating revenues of MNOK 1 486 (MNOK 1 369) and an EBITA of MNOK 114. This is an increase of more than 10 per cent. The segment also booked more new orders than expected in the offshore and shipbuilding markets alike. New orders were up nearly 10 per cent from the same quarter of last year, MNOK 1 813 compared with MNOK 1 656", adds the CEO.

"Defence & Aerospace reported weaker performance than last year. This is a result of delays in new orders and a slump in deliveries during the first half of the year in the defence communications segment. The other segments have improved operations since 2004 and the weapons control system for armoured personnel carriers has exceeded expectations. Like last year, we expect better results for Defence & Aerospace in the latter half of the year", continues Korssjøen. Defence & Aerospace posted operating revenues of MNOK 1 214 (MNOK 1 110) and an EBITA of MNOK -14 at mid-year.

"Yachting & Fishery continues to face challenges related to stiff market competition, and a number of measures are currently being implemented to enhance profitability", says Korssjøen. Yachting & Fishery posted operating revenues of MNOK 447 (MNOK 508), down 12 per cent from mid-year 2004. The EBITA came to MNOK 21 (MNOK 36). "The markets for offshore and shipbuilding both continue to flourish. We enjoy good positions in these markets, providing a sound platform for further growth. The yachting market is distinguished by keen competition. There is still a relatively low investment level in the fishery market. The successful NSM test results and the signing of a transition contract mitigate the risk inherent in the NSM development programme. We expect profitability to improve in the field of weapons control systems. "We strive constantly to enhance profitability. Our current focus on strategic development and cost reductions, combined with a good influx of new orders, means that we expect profits to improve during the latter half of the year", concludes Chief Executive Officer Jan Erik Korssjøen.

For further information, please contact:
Chief Executive Officer Jan Erik Korssjøen telephone: ( 47) 322-89510 - ( 47) 920-60000 Chief Financial Officer Arne Solberg telephone: ( 47) 322-89575 - ( 47) 920-6001