YEAR-END REPORT 2008 Net Insight AB (publ), Corporate Reg. No. 556533-4397 Full year 2008 * Net sales increased by 20% to SEK 274.3 million (228.8). * Operating earnings increased to SEK 37.9 million (32.6). * Gross margin at 72.4 % (70.8). * License, support and leasing revenue increased to SEK 90.9 million (49.9). * Total cash flow amounted to SEK 23.5 million (50.6). * Net income increased to SEK 67.9 million (34.0), including a deferred tax asset. On a comparable basis, excluding the deferred tax asset and one time other operating revenue, the net income increased by 68%. * Net profit margin was 24.8% (14.8). * Earnings per share amounted to SEK 0.18 (0.09). Fourth quarter 2008 * Net sales increased by 14% to SEK 70.2 million (61.6). * Operating earnings amounted to SEK 9.8 million (17.7) * Gross margin at 74.7% (71.4). * Total cash flow amounted to SEK 18.8 million (33.9). * Capitalization of tax losses carried forward by SEK 103 million resulting in a deferred tax asset of SEK 27.1 million. * Net income amounted to SEK 37.5 million (18.3) including a deferred tax asset of SEK 27.1 million. * Earnings per share amounted to SEK 0.10 (0.05). 2008 was a good year for Net Insight with several new customers in all of our core markets. We won new projects for digital terrestrial TV and mobile TV distribution networks, delivered our Nimbra platform for large media contribution projects and added new telecom operators to our customer base which also create further opportunities for IPTV/CATV business. At the same time our established customer base of globally recognized companies continued to generate a substantial volume of repeat business. As a result, we are able to report a record year with growing sales, healthy profitability and positive cash flow. Despite the general world economic downturn we can also report a solid performance in the fourth quarter. The underlying growth of media centric networks and the demand for cost efficient and high performance media networks spur the strong development of our business. In Asia, our business has been growing substantially during the year. Our Nimbra platform was delivered and installed under the contract with BOB (Beijing Olympic Broadcasting) for the Beijing Olympics, which was the world's largest and most mission critical TV event ever. This was a very important project for Net Insight and our network solution generated strong market interest. Digital TV is on the rise in China, the world's largest TV market. This has created new business for Net Insight and we have received our first orders for TV distribution networks in China. Our partner network further supported the momentum in Asia. Our strong broadcast and media customer base in North America has continued to expand their media transport networks during the year. Our market position in the region was further strengthened when mediaXstream selected Net Insight for a large multiservice transport network and when a large North American telecom operator built a Nimbra based network to serve a large global media group. In Europe several of our existing customers have not only extended their networks but also added new services such as mobile TV, radio contribution etc. We continued to win new contracts for DTT (Digital Terrestrial TV) distribution networks in Europe and also entered a new market in the dynamic Middle East region. Our world-class customers show confidence in the Nimbra platform, we are told and we are confident that we have the right products and know-how to capitalize on the growing media transport demands in the communications industry. There is a world economic downturn, which may also affect our part of the industry. However, with our progress in 2008, our efficient product portfolio, strong balance sheet, solid customer base and highly dedicated employees, Net Insight is well positioned, which is very encouraging for the future. The full report can be downloaded below. Stockholm 20 February 2009 Fredrik Trägårdh Chief Executive Officer For more information, please contact: Fredrik Trägårdh, CEO Net Insight AB Tel.: +46 (0) 8-685 04 00, email: fredrik.tragardh@netinsight.net Lars Kevsjö, CFO Net Insight AB Tel.: +46 (0) 8-685 04 00, email: lars.kevsjo@netinsight.net Net Insight AB Net Insight AB (publ)Box 42093 126 14 Stockholm Tel +46 (0) 8 685 04 00 www.netinsight.net Corporate Reg. No. 556533-4397