Additional installations of Axis networkvideo in US retail chains

March 27, 2006, Axis Communications, the global leader in the network video market, announced today that Axis network video products are being installed by a Midwestern retailer to monitor the company’s entire chain of 210 supercenters. The network video system integrates the video with a point-of-sale system which helps the stores’ management to monitor anomalies in the sales process. The deal is valued at approximately $1 million for Axis.

Spiritech, a security integrator and an Axis partner, designed and installed the system using AXIS 240Q Video Servers. The video servers digitize video feeds from the stores’ existing analog cameras and to integrate the footage with a network video recorder (NVR) and Spiritech’s Revelation Software, which includes the point-of-sale technology.

"The customer recognized the advantages of moving to a digital system" said Whitey Helberg, president and CEO of Spiritech. "However, the company did not want to write off its existing investment in analog technology. The Axis video servers were a cost-effective way for us to upgrade the system"

In addition to point-of-sale monitoring, the network video system helped the supercenters to more efficiently record, store and manage video feeds. With up to 100 analog cameras in each store, the company previously used racks of VCRs to record the footage. Tapes had to be manually changed every eight hours, and the stores had to dedicate large amounts of space to tape storage.

"Axis has seen an increased demand for network video systems in retail environments" said Ray Mauritsson, President of Axis Communications. "The technology integrates easily with many other systems found in retail stores, such as point-of-sale and access control systems, so retailers are able to better manage inventories, loss and fraud"

With the network video system, all of the images are recorded to standard servers, so there are no tapes to change and store. In addition, managers can locate and scan video based on incidents and time and date information, rather than having to manually wind through hours of videotape. The network video rollout is expected to be finalized by September 2006.

About Axis
Axis increases the value of network solutions. The company is an innovative market leader in network video and print servers. Axis’ products and solutions are focused on applications such as security surveillance, remote monitoring and document management. The products are based on in-house developed chip technology, which is also sold to third parties.

Axis was founded in 1984 and is listed on the O-list (Attract 40) of Stockholmsbörsen (XSSE: AXIS). Axis operates globally with offices in 16 countries and in cooperation with distributors, system integrators and OEM partners in 70 countries. Markets outside Sweden account for more than 95% of sales. Information about Axis can be found at www.axis.com.

About Spiritech
Spiritech has been protecting and serving businesses for over 25 years and has become a leader in the security industry. This bright and highly talented team of trained technicians is unmatched in their dedication to adapting to the evolving needs of their clients; clients that range from small and medium-sized business to mega superstores. With the highest and utmost integrity and honesty they have been carving a foothold in the extremely competitive marketplace of corporate security leaving the nearest competitor light-years behind. For more information, please see www.spiritech.net

Contact Information

Margareta Lantz

Investor Relations and Corporate Communications Manager

Axis Communications

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