Positive Q3

Kongsberg Gruppen (KONGSBERG) earned operating revenues of MNOK 4 257 (MNOK 3 290) and an EBIT of MNOK 239 (MNOK 49) as of 30 September. Operating revenues came to MNOK 1 428 (MNOK 1 269) and operating earnings totalled MNOK 149 (MNOK 100) in Q3*. "We have completed the Group`s best Q3 ever in terms of performance, and the prospects are good for 2005 as a whole", states Chief Executive Officer Jan Erik Korssjøen.

Offshore & Merchant Marine has a stable high level of operating revenues and is making progress in a good market. The segment had Q3 operating revenues of MNOK 2 312 (MNOK 2 227) and an EBIT of MNOK 190 (MNOK 170). "The segment also booked new orders valued at MNOK 2 760, up from MNOK 2 509 in 2004. The backlog of orders at 30 September was a record- high MNOK 2 107, which is MNOK 339 higher than last year", continues Chief Executive Officer Jan Erik Korssjøen.

Defence & Aerospace saw a distinct improvement in performance in Q3. Although the defence communications segment still faces challenges as a result of belated new orders, KONGSBERG continues to experience success with its weapons control systems. All other areas are on schedule. The segment reported operating revenues of MNOK 1 878 (MNOK 1 618) and an EBIT of MNOK 56 (MNOK -121) in Q3. At 30 September, the backlog of orders was valued at MNOK 3 289, compared with MNOK 4 040 at the same date in 2004. "As usual, we expect better results for Defence & Aerospace in the latter half of the year", adds Korssjøen.

KONGSBERG sold the part of Simrad that develops, manufactures and sells maritime electronics for yachts and commercial vessels to a Nordic investment fund in September. The business will continue under the name Simrad Yachting. The transfer will take place on a debt-free basis for MNOK 586. The part of Simrad aimed at fisheries and fisheries research will be integrated into the Offshore & Merchant Marine segment.

"The sale of Yachting activities will allow us to focus our strategy for the maritime segment fully and completely on industrial markets", concludes CEO Korssjøen.

----- *All figures have been adjusted by deducting yachting activities from the Yachting & Fishery segment as a result of the sale. The figures contain no gains from the sale.