The Hungarian arbitration tribunal declines KONGSBERG claim for compensation
Reference is made to previous financial reports, including the Annual Report for 2010, note 19, regarding the dispute between KONGSBERG and the Hungarian Ministry of Defence. In 2003, KONGSBERG concluded a contract with the Hungarian armed forces for the delivery of military radios. Since the Hungarian armed forces had less need for radios, the contract was updated in 2007, and the parties agreed that compensation should be negotiated by the end of 2009. The negotiation failed, and KONGSBERG filed an arbitration action against the Hungarian Ministry of Defence in 2010 claiming compensation. The court in Budapest has concluded against KONGSBERG. KONGSBERG has during the project made provisions. KONGSBERG will book a loss of approx. MNOK 60 in Q3 2011.