SALARY COSTS
Salary costs represent total costs associated with the remuneration of personnel employed in the group. These costs consist of direct salaries and holiday pay, bonuses, pension costs and all social security taxes. The costs can be broken down as follows:

The average number of employees during the financial year was 526. At the year-end 539 persons were employed in the group.

Loans to employees as at 31.12.03 amount to NOK 0 million for the parent company and NOK 4.3 million for the group.

SHAREHOLDINGS
The column shows the number of shares owned by members of the Board of Directors and senior employees, controlled by them and related persons.

LOANS AND BENEFITS TO THE GROUP CHIEF EXECUTIVES
Andrew Miller is the CEO and Vice Chairman of the Board and received a fixed salary of USD 750,000 in addition to a bonus of USD 312,500. The President Per Haug Kogstad received NOK 1,255,481 in fixed salary. The CEO has an agreement for the payment of 8 months salary on termination of his employment.

LOANS TO MANAGEMENT
The CEO has a loan of USD 500,000 with TANDBERG Inc. The loan is repayable by 28 February 2006, and is secured by a loan agreement after US standards.

OPTIONS ALLOCATED
The Group management’s total allocated, but not exercised, options under the company’s 2003-2004 share option program.

AUDITOR
Audit fees and audit related services have been expensed with the amount of NOK 2,012,981 for the group and NOK 656,587 for the parent company. Fees to auditor for special engagements have been expensed with the amount of NOK 716,157 for the group and NOK 675,937 for the parent company.

OTHER OPERATING COSTS
Other operating costs consist of all other operating costs with the exception of salaries, depreciation and losses on accounts receivable.

LEASE CONTRACTS FOR PREMISES

TANDBERG Telecom AS signed a new lease for additional areas on Lysaker in October 2003.
Contracts at Lysaker with the same time to maturity are added in the table.