EARNINGS PER SHARE
A total of 3,191,029 options are issued as at 31.12.03. When calculating diluted earnings per share, the share capital to be paid-in relating to these options are taken into consideration. The capital to be paid-in is estimated to NOK 89.8 million and converted to number of shares at the average share price for 2003 of NOK 39.89, which translates into 2,251,007 shares. The difference of 940,022 shares is added to the weighted number of shares in the calculation of diluted earnings per share.

INTANGIBLE AND TANGIBLE FIXED ASSETS

Machinery, fixtures and cars are depreciated on a straight line basis over an economic life for new assets of between 3 and 5 years.

INTANGIBLE FIXED ASSETS

Goodwill from the purchase of TANDBERG Inc is written off over 20 years. The depreciation period of 20 years is based on the fact that the acquisitions have provided TANDBERG asa with a market position in the USA which is expected to be capable of exploitation for more than 20 years.

Goodwill in TANDBERG Telecom originates from the acquisition of Delante and Internet Technology which was merged into TANDBERG Telecom in 2002. This goodwill is written off over an economic lifetime estimated to 10 years. The know-how from these two acquisitions is expected to be exploited for at least 10 years.

In 2002 TANDBERG purchased a number of patents from Ezenia for a total value of NOK 36.9 million. The patents are depreciated over the remaining lifetime. The lifetime varies from 13 to 16 years.

SHARES IN SUBSIDIARIES

All transactions between the companies in the Group are carried through at arm’s length.