SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For Q1Q2-2003 Results

Nera ASA

Kokstadveien 23, P.O. Box 7090
N-5020 BERGEN
Norway

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x[X] Form 40-F o [ ]

Indicate by check mark whether the registrant by furnishing the information continued in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o[ ] No x [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3- 2(b):

TABLE OF CONTENTS

SIGNATURES Press Release: Second quarter report 2003

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

Nera ASA By: Bjørn Ove Skjeie (sign.) Name: Bjørn Ove Skjeie Title: President and Chief Operating Officer


	Nera ASA



	By:	/s/ Bjørn Ove Skjeie
		Name: Bjørn Ove Skjeie Title: President and Chief Operating Officer

Dated: July 25, 2003

Dated: April 29, 2003

		Nera ASA
		Postal Address P.O. Box 7090, N-5020 BERGEN, Norway,
		Postal Address
PRESS RELEASE, 29 April 2003		Office Address Kokstadvn. 23, BERGEN, Norway, Tel.No. +47 55 22 51 00 Fax.No. +47 55 22 52 99
		P.O. Box 7090, N-5020 BERGEN, Norway,
		Head Office Nera ASA, 5020 BERGEN Register of Business Enterprises NO 944 536 949 MVA
		Office Address
		Kokstadvn. 23, BERGEN, Norway,
		Tel.No. +47 55 22 51 00
PRESS RELEASE, 25 July 2003		Fax.No. +47 55 22 52 99
		Head Office
		Nera ASA, 5020 BERGEN
		Register of Business Enterprises
		NO 944 536 949 MVA

Nera ASA: Results per ~~1st~~2nd quarter 2003

~~Bergen/Norway~~Nera ASA (OSE: NER) shows continued progress through the second quarter. Again, Satellite 29Communications ~~April~~delivers a solid quarterly return while Nera’s other ~~2003~~operations have improved their results. The Nera Group re ports an operating loss of MNOK 11.1 for Q2, an improvement of MNOK 13.5 from the previous quarter. Ongoing cost reduction initiatives are showing positive effects. Nera had a positive cash flow from operations in the second quarter and strengthened its cash reserves considerably. During the 2nd quarter Nera received orders of MNOK 628, which bodes well for the company’s future progress.

~~Nera~~• ~~ASA~~Operating ~~(OSE~~income Q2: ~~NER~~MNOK (11.1), ~~had~~compared ~~operating~~to ~~revenues~~MNOK of(34.3) MNOK ~~540~~ for Q1Q2 2002 • Income before tax Q2: MNOK 2.9, compared to MNOK ~~681~~ (62.9) for Q1Q2 2002. ~~Although~~• ~~the~~Transmission ~~company’s~~Networks ~~turnover~~booked isnew ~~reduced,~~orders ~~the~~for ~~operating income~~MNOK 368 in Q2 and ~~income~~had ~~before~~an ~~tax~~operating ~~have~~loss ~~improved~~of MNOK (25.1) ~~The~~• ~~Nera~~Satellite ~~Group~~Communications ~~reports~~achieved ~~positive pre-tax~~an ~~profit~~operating income of MNOK 225.5 in 2002, compared to ~~a loss of~~ MNOK 3617.0 in ~~2002.~~Q2 ~~Good~~of ~~earnings for~~last ~~Satellite~~year ~~Communications,~~• ~~lower~~Nera’s ~~operating~~balance ~~costs~~sheet and ~~higher~~cash ~~financial~~flow ~~income are~~have ~~the~~improved ~~main~~further ~~reasons~~and ~~for~~at the ~~improvement.~~close ~~In spite~~ of ~~the~~Q2 ~~increase in orders received,~~ the ~~weak~~company ~~transmission~~held ~~market~~cash ~~still~~reserves ~~presents~~of ~~the~~MNOK ~~company~~835 ~~with considerable~~and ~~challenges.~~had ~~Nera~~an ~~retains~~equity ~~its~~ratio ~~goal~~ of ~~regaining~~66 ~~profitability during 2003.~~ percent

• Operating income per Q1: MNOK (24.6) compared to MNOK (42.5) for Q1 2002 • Income before tax per Q1: MNOK 2.0 compared to a loss of 35.7 MNOK for Q1 2002 • Transmission Networks booked new orders for MNOK 318 in Q1, and had an operating loss of MNOK 40.7 • Satellite Communications strengthens its market position and achieved an operating income of MNOK 27.5 in Q1, compared to MNOK 14.4 in Q1 last year • Operating expenses have been reduced by 26 percent and new cost cut initiatives are under implementation • Nera’s balance sheet is still strong, and at the close of Q1 the company had cash reserves of MNOK 757 and an equity ratio of 64 percent


Figures in MNOK	Q2 2003			Q2 2002			Per Q2-03			Per Q2-02			2002

Orders received		628.2			764.9			1219.5			1396.8			2 518.6
Operating revenues		544.5			649.2			1084.2			1330.0			2 444.8
Operating income		(11.1	)		(34.3	)		(35.7	)		(76.8	)		(144.4	)
Income before tax		2.9			(62.9	)		4.9			(98.5	)		(162.2	)
Earnings per share		(0.05	)		(0.33	)		(0.10	)		(0.62	)		(1.19	)

Figures in MNOK	Q1 2003			Q1 2002			2002
Orders received		591.3			631.8			2 518.6
Operating revenues		539.7			680.7			2 444.8
Operating income		(24.6	)		(42.5	)		(144.4	)
Income before tax		2.0			(35.7	)		(162.2	)
Earnings per share		(0.05	)		(0.29	)		(1.19	)

“The positive developments we saw in the first three months of the year have continued in the second quarter. Transmission Networks is approaching operational balance and an increase in orders received for this business area give prospects of growth for the time ahead”, says Bjørn Ove Skjeie, CEO of Nera ASA, and continues: “We are also pleased to note that Satellite Communications continues to deliver strong results in spite of a somewhat lower business volume. We uphold our ambitions of regaining profitability for the Nera Group in the course of 2003 and of achieving business volume at the same level as last year”, says Skjeie.

~~“We note that the effects of the reductions of expenses and good earnings for~~1(2) ~~Satellite Communications has given a marked improvement of results”, says Bjørn~~ Ove Skjeie, CEO of Nera ASA. Skjeie continues: “Orders received per first quarter for Transmission Networks is back at 300+ level, and we still think a volume at 2002 level is realistically attainable for this business area”.

Transmission Networks

InSigns ~~Nera’s~~of ~~Transmission~~emerging ~~Networks~~optimism ~~business,~~in the ~~market~~general istelecom ~~still~~markets ~~characterised~~provide by a ~~low~~basis ~~will~~for new togrowth ~~invest~~ in ~~new~~the ~~mobile~~somewhat ~~network~~longer ~~infrastructure.~~term for Nera’s ~~still~~Transmission ~~sees a~~Networks ~~positive~~business, ~~trend~~although the eagerness to invest in ~~that~~new ~~the~~infrastructure ~~order~~for ~~intake~~mobile communication networks is ~~back~~still onweak. ~~the~~Nevertheless, ~~levels~~orders ~~seen~~received infor ~~the five~~this ~~quarters~~business ~~before~~area Q4continue ~~2002~~to show positive trends. Transmission Networks booked orders for MNOK ~~318~~368 in ~~Q1 2003~~Q2, compared to MNOK ~~235~~318 in Q4Q1. ~~2002~~The ~~and~~order ~~MNOK~~intake ~~309~~is inon level Q1with ~~2002. Among~~ the ~~orders received,~~same ~~South-East~~period ~~Asian~~of ~~and~~last ~~Eastern~~year. ~~European~~Markets ~~markets~~where ~~still~~Nera ~~dominate,~~already ~~but~~has ~~the~~a solid ~~company~~foothold iscontinue ~~pleased~~ to ~~note~~constitute ~~that~~the ~~Latin~~bulk ~~America~~of isorders ~~once again showing a positive development~~received.

~~Operating revenues in~~ Transmission Networks’ operating revenues were MNOK ~~258~~293 ~~per~~in Q1Q2, compared to MNOK 373 ~~378~~ in Q1the same period of last year. The operating loss was MNOK 4025.71, compared to a loss of MNOK 5347.5 infor Q1Q2 ~~2002~~of last year. InEfforts ~~addition~~are ongoing to ~~other~~streamline Transmission ~~cost~~Networks’ ~~cut~~supply ~~initiatives~~chain. Phase 1, entailing a reduction of the ~~ongoing~~workforce ~~streamlining~~by 60 employees, has been completed and will yield full effects from the third quarter on. The current restructuring of ~~Nera~~the ~~Networks~~company’s ~~supply~~operations ~~chain~~in Bergen isand ~~expected~~Boston tonecessitate ~~reduce~~restructuring provisions in the order of MNOK ~~workforce~~40-50. byThese upprovisions are expected to 90be ~~man-years~~booked ~~for~~in ~~this~~Q3 ~~business~~of ~~area~~this year.

Satellite ~~Communication~~Communications

~~Nera~~In ~~continues~~line ~~its~~with ~~positive~~expectations, ~~trend~~the inmarket ~~satellite~~for ~~communication.~~land-mobile Ansatellite ~~unstable~~telephones ~~geo-political~~curbed ~~situation~~after ~~has~~the ~~led~~war toin aIraq. ~~marked~~However, ~~increase~~with ina ~~the~~broad ~~demand~~and ~~for satellite~~solid ~~phones~~portfolio, Satellite ~~and~~Communications ~~has~~continues ~~also~~to ~~increased~~deliver ~~demand~~good inresults. ~~the~~Nera’s ~~land-earth station~~satellite ~~market.~~communication ~~The~~business ~~demand~~booked orders for ~~the~~MNOK ~~Nera~~126 ~~WorldPhone~~in ~~and~~Q2, ~~the~~compared ~~Nera~~to ~~WorldCommunicator~~MNOK ~~was~~289 ~~particularly~~for ~~good in~~ the ~~past~~same ~~quarter.~~period ~~Satellite~~of ~~Communication~~2002, ~~booked~~when orders ~~for~~ ~~MNOK~~received ~~170~~were ~~in Q1. This is~~ at ~~the~~a particularly high level ofdue Q4to ~~2002, but is 40 percent above~~ the Q1BGAN ~~2002 level~~contract.

Satellite ~~Communication~~Communications had operating revenues of MNOK ~~172~~143 infor Q1Q2, compared to MNOK ~~161~~156 infor the ~~beginning~~same period of 2002. ~~Operating~~The operating income was MNOK 2725.5, compared ~~nearly~~to ~~twice that~~MNOK of17 for the same period of last year. The strong ~~result~~operating income ~~gave~~yielded Satellite Communication ana net operating margin of 1618 percent.

Wireless Broadband Access

~~The~~Nera ~~wireless~~is ~~broadband~~established ~~market~~as isa ~~still~~leading supplier in athe ~~phase~~global ofmarket ~~development~~for broadband via satellite. This market, ~~which~~as ~~means that~~well as the ~~number~~market offor ~~projects~~terrestrial wireless broadband, is ~~limited~~still ~~and~~in ~~the~~an ~~volume~~early phase of ~~orders~~development, ~~received~~but isNera continues to win ~~unstable.~~new ~~The~~contracts ~~priority~~in ~~area~~expanding ~~for~~geographical ~~the~~markets. The company’s ~~terrestrial~~recently ~~systems~~booked ~~is expanding~~an ~~geographically.~~order ~~Because~~for ofa ~~the~~complete ~~exceptionally~~satellite-based ~~large~~broadband ~~order~~network ~~intake~~solution infor Q4the ~~2002~~Fiji Islands, ~~the focus~~at ina ~~broadband~~contract ~~via~~value ~~satellite~~of isMNOK ~~currently on delivery efforts~~45. ~~Nera’s~~ Wireless Broadband Access ~~business~~ booked ~~new~~ orders for MNOK 962 in ~~Q1 2003~~Q2, compared to MNOK 3612 infor Q1the same period of 2002.

Wireless Broadband Access had operating revenues of MNOK 3132 in ~~Q1 2003~~Q2, compared to MNOK 2021 infor Q1the same period of 2002. This ~~resulted~~gave in an operating loss of MNOK 11 10.57, compared to a loss of MNOK 166.76 in Q1Q2 2002.

Prospects

“Our goal still stands – to regain profitability in the course of 2003”, underlines Bjørn Ove Skjeie, CEO of Nera ASA. “Attaining it will require a determined implementation of cost cut initiatives in the Transmission Networks business area and a constant focus on improving profitability throughout the company. Meanwhile, we need to keep up our marketing efforts, to secure a business volume of more than MNOK 300 per quarter in Transmission Networks. We also need to further strengthen the market position of our Satellite Communications business”, concludes Skjeie.

For further information, please contact:

Press: Helge Skaar, EVP Information and Public Affairs, +47 55 22 58 20 (~~work~~office), +47 90 14 20 40 (mobile), or hsk@nera.no

Investors: Odd Bjørn Ur, Investor Relations Officer, +47 55 22 55 71 (office), +47 90 14 14 83 (mobile), or obu@nera.no

or www.nera.no

2 (2)

Income ~~Statements~~statement

(Amounts in NOK mill.)	1st quarter		1st quarter		Year
	01.01-30.06		01.01-30.06		Year		2nd quarter		2nd quarter
	2003		2002		2002
(Amounts in NOK mill.)	2003		2002		2002		2003		2002
Orders received		~~591~~1219,35		~~631~~1 396,8		2 518,6		628,2		764,9
Operating revenues		539,7		680,7		2 444,8
Operating revenue		1084,2		1 330,0		2 444,8		544,5		649,2
Operating expenses		-~~494~~982,18		-~~623~~1 235,6		-2 255,1		-488,7		-611,9
Depreciation		-2040,2		-2041,85		-83,5		-20,0		-20,8
Operating income before R&D		25,4		36,3		106,2
Operating income before R&D costs		61,2		52,9		106,2		35,8		16,5
Research and Development		-5096,9		-78129,87		-239,5		-46,9		-50,8
Operating income before restructuring and writedowns		-24,6		-42,5		-133,3
Operating income (loss) before restructuring and writedowns		-35,7		-76,8		-133,3		-11,1		-34,3
Restructuring and writedowns		0,0		0,0		-11,1		0,0		0,0
Operating income		-24,6		-42,5		-144,4
Operating income (loss)		-35,7		-76,8		-144,4		-11,1		-34,3
Income from investments in associated comp.		1,7		-0,4		-23,8
Earnings from investments in associated comp		5,8		-25,8		-23,8		4,1		-25,4
Net financial items		2434,98		74,21		6,0		9,9		-3,2
Income before taxes and minority interest		2,0		-35,7		-162,2
Income (loss) before tax		4,9		-98,5		-162,2		2,9		-62,9
Taxes		0-5,32		1027,86		33,7		-5,5		16,9
Net income (loss)		2-0,23		-2470,9		-128,5		-2,6		-46,0
Minority interest		-812,32		-104,6		-16,5		-3,8		6,0
Net income (loss) after minority interest		-612,15		-3575,5		-145,0		-6,4		-40,0

Balance ~~Sheets~~Sheet

(Amounts in NOK mill.)	3130.0306.03		31.12.02		3130.0306.02
Deferred tax assets		174,0		174,0		~~140~~179,37
Goodwill		1716,65		18,9		2221,53
Property, plant, equipment, IT		~~215~~208,16		222,8		~~257~~242,73
Financial non-current assets		~~150~~151,09		161,5		~~213~~167,47
Non-current assets		~~556~~551,70		577,2		~~633~~611,90
Inventories		~~354~~322,20		382,9		~~493~~459,91
Trade receivables		~~576~~471,16		518,6		~~604~~590,49
Omløpsaksjer Cash and cash equivalents		756,6		795,8		730,8
Other receivables		244,9		285,3		278,7
Current assets		1961,4		1 982,6		2 191,7
Cash and cash equivalents		834,7		795,8		689,2
TOTAL ASSETS		2518,2		2 559,8		2 825,6
Current assets		1 873,2		1 982,6		2 018,0
Shareholder’s equity		1618,8		1 612,6		1 688,8
TOTAL ASSETS		2 424,2		2 559,8		2 629,0
Long-term liabilities		75,4		92,0		80,7
Shareholder’s equity		1605,5		1 612,6		1 595,9
Current liabilities		823,9		855,2		1 056,2
Long-term liabilities		72,9		92,0		78,6
TOTAL EQUITY AND LIABILITIES		2518,1		2 559,8		2 825,6
Current liabilities		745,8		855,2		954,4
Interest bearing current liabilities		3,1		4,8		7,8
TOTAL EQUITY AND LIABILITIES		2 424,2		2 559,8		2 629,0
Interest bearing long-term liabilities		3,9		4,3		7,6
Interest bearing current liabilities		1,8		4,8		4,3
Minority interest of equity		255,8		240,2		167,6
Interest bearing long-term liabilities		3,2		4,3		6,1
Minority interest of equity		251,7		240,2		142,5

Statements of ~~Cash~~cash ~~Flow~~flow

(Amounts in NOK Mill.)	1st quarter		1st quarter		Year
	01.01-30.06		01.01-30.06		Year
	2003		2002		2002
(Amounts in NOK Mill.)	2003		2002		2002
Net income (loss)		2-0,23		-2470,9		-128,56
Depreciation		2040,2		2041,85		83,5
Change in inventories, accounts receivable/payables and other working capital items		5104,60		~~124~~198,64		210,8
Other adjustments to operation activities		-7273,60		-88105,51		-131,2
Net cash provided by (used in) operating activities		~~-44~~70,59		3163,9		34,6
Proceeds from sale of property, plant and equipment		01,72		03,96		7,9
Capital expenditures		-921,58		-1335,71		-61,4
Other investments and sales		2115,43		746,95		110,7
Net cash provided by (used in) investing activities		12-5,63		-415,81		57,2
Proceeds from issuance of shares		—		—		37,7
Changes, treasury stock		—		—-2,8		-2,8
Dividends paid		—-6,0		—		-26,8
Net changes in liabilities		-24,21		-~~185~~190,34		-191,7
Net cash provided by (used in) financing activities		-210,21		-~~185~~193,32		-183,6
Effect of changes in currency exchange rates		-516,16		-1016,45		-11,9
Net change in cash and cash equivalents		~~-39~~38,29		-~~168~~130,67		-103,7
Cash and cash equivalents at beginning of period		795,8		899,5		899,5
Cash and cash equivalents at end of period		~~756~~834,67		~~730~~768,97		795,8

~~First~~Second quarter report 2003

Unaudited

(NERA LOGO)

~~Q1-03~~Q2 2003 REPORT

The Nera Group had operating revenues of MNOK ~~540~~545 ~~for~~in the ~~first~~second quarter of 2003, compared to MNOK ~~681~~649 for the same period in 2002. ~~Despite~~Revenues are on a ~~lower~~level ~~turnover~~with Q1 2003, while the operating ~~income~~ ~~and~~ income ~~before~~ ~~tax~~is ~~has~~further ~~been~~ improved. The company ~~reports~~had aan ~~positive income before tax~~operating loss of MNOK 2 11 in Q2 2003, compared to alosses ~~loss~~ of MNOK 3634 in ~~the~~Q2 ~~first~~2002 ~~quarter~~and ~~2002.~~MNOK 25 ~~Lower~~in ~~operating~~Q1 ~~costs~~2003. Again, ~~good~~ ~~earnings~~Satellite ~~from satellite~~Communications ~~communications~~delivers ~~and~~a ~~high~~solid ~~financial~~quarterly return ~~revenues~~while ~~are~~Nera’s ~~the~~other ~~main~~business ~~reasons~~areas ~~for the~~have ~~improvement~~improved their results. ~~The~~A ~~weak~~positive ~~transmission~~cash ~~market~~flow, ~~will~~strengthened ~~still~~cash ~~present~~reserves and further cost reductions attest to the company’s firm control with ~~challenges~~its operations, in spite of the weak ~~throughout~~state ~~2003~~of several markets. ~~The ambition~~Nera tobooked ~~regain~~orders ~~profitability~~for ~~during~~MNOK ~~the~~628 ~~course~~in Q2 and upholds the ambition of maintaining a business volume in 2003 isat ~~maintained~~approximately the same level as in 2002.

~~Order~~Orders ~~intake~~received and the market situation

The Nera Group booked new orders for MNOK ~~591~~628 in the ~~first~~second quarter of 2003, compared to ~~632~~MNOK 765 in last year’s ~~first~~second quarter. The order intake ~~improved~~increased by ~~somewhat~~MNOK 37 from ~~fourth~~the first quarter of ~~last~~ ~~year, when the company’s order intake was MNOK 575~~2003.

Transmission Networks booked new orders for MNOK ~~318~~368, compared to MNOK ~~309~~361 for the corresponding period of last year, and up from MNOK ~~235~~318 in ~~fourth~~the first quarter of ~~2002~~ 2003. ~~The~~A ~~order~~number ~~intake~~of ~~for this~~medium-sized ~~business~~orders ~~area~~(MNOK is10-40) ~~thus~~from ~~again~~Kazakhstan, Norway, at the ~~average~~Caribbean ~~level~~and ~~for~~ the ~~period~~Philippines ~~since~~have ~~the fourth~~contributed ~~quarter~~to ofraising ~~2001. After a~~the ~~weak~~volume ~~start~~of ,orders ~~the~~received ~~order~~above ~~intake~~that ~~recovered towards the end~~ of the ~~quarter~~previous quarters.

~~The~~While ~~transmission~~the ~~market~~challenging ~~remains~~transmission ~~difficult~~networks ~~and~~market ~~the prevailing sentiment~~ is still ~~reluctance~~ ~~towards~~awaiting ~~investing~~better inwinds, ~~new~~this ~~infrastructure~~confirms ~~for~~the ~~mobile~~positive ~~networks~~potential in ~~Western~~markets ~~Europe~~where ~~and~~ the ~~USA.~~company ~~This contributes~~has ~~to increased~~an ~~competition~~established ~~in the remaining regions and market segments~~position. ~~South~~Nera ~~East~~is ~~Asia~~still ~~and Eastern~~working ~~Europe~~to ~~continue~~close ~~at a~~major ~~high level of activity, while Latin America yields increasing activity~~infrastructure contracts.

The ~~Mobile~~ Satellite ~~Solutions~~Communications business area booked orders for MNOK ~~170~~126 in the ~~first~~second quarter inof 2003, at compared to MNOK 289 in the ~~same~~second ~~level~~quarter asof ~~for~~2002 and MNOK 170 in the ~~corresponding~~first quarter ~~last~~of ~~year,~~2003. ~~but~~The ~~40 percent~~orders ~~above~~ received in Q2 of last year’s included ~~fourth~~the ~~quarter~~BGAN contract for MNOK 135.

~~Mobile~~In ~~Satellite~~line ~~Solutions~~with ~~has~~expectations, ~~experienced~~the avolume ~~quarter~~ of ~~substantial~~orders ~~sales~~received ~~of the~~for ~~land~~this ~~mobile~~business ~~satellite~~area ~~terminals~~is ~~Nera~~down ~~WorldPhone~~somewhat, ~~and~~due ~~Nera~~to ~~WorldCommunicator.~~the ~~This~~end ~~increase~~of ~~comes~~war asin ~~a consequence~~Iraq. The weakening of anthe market ~~unstable~~for ~~geo~~land-~~political~~mobile ~~climate.~~satellite ~~The~~telephones ~~situation~~has ~~boosts~~been ~~the~~offset ~~traffic~~somewhat ~~volume~~by ~~and~~a positive ~~will~~development ~~again~~for ~~provide~~other ~~new~~products, ~~business volume~~i.a. ~~for~~good sales in the land-earth station segment. Nera’s focus is now on market segments other than “crisis communication”, i.a. the maritime market and new technology applications.

The Wireless Broadband Access business area ~~saw~~booked anorders ~~order~~for ~~intake~~MNOK 62, compared to MNOK 12 in the ~~first~~ corresponding quarter of ~~2003~~last ofyear and MNOK 9~~, which~~ isfor athe ~~decline~~first quarter ~~from~~of ~~the~~this ~~very~~year. ~~strong~~The ~~previous~~new ~~quarter,~~orders ~~which~~include ~~included~~a ~~the Shin~~contract ~~Sat~~worth ~~contract~~MNOK 45 for ~~MNOK~~the ~~125.~~development ~~Orders~~of ~~received~~a innew ~~the~~system ~~first~~for ~~quarter~~broadband ofcommunication ~~2002~~via ~~were~~satellite ~~MNOK~~for 36the Fiji Islands.

~~The~~Nera ~~orders~~is ~~received~~now ~~are~~becoming ~~principally~~one inof ~~connection~~the ~~with~~globally ~~terrestrial~~leading suppliers of broadband solutions. ~~Nera~~via ~~continue to direct its market efforts on concentrated geographical areas~~satellite. ~~Meanwhile,~~In the ~~sales~~ ofarea ~~these solutions is increasingly generated through Nera’s own international sales network Outside~~ of ~~Scandinavia~~terrestrial ~~and~~wireless ~~Italy~~broadband, ~~contracts~~projects ~~have~~are ~~been~~now ~~signed~~under inway ~~Eastern Europe, Latin America and South-East Asia. Contracts~~ in ~~this~~all ~~field are typically small, usually between one and two MNOK~~regions.

~~The~~Other ~~broadband-via-satellite~~activities ~~business~~(mainly ~~has~~Electronics ~~mainly~~Contract ~~focused~~Manufacturing ~~the~~and ~~work~~Information Technology in ~~connection~~NeraTel, Singapore) booked orders for MNOK 71 in Q2 of 2003, down ~~with~~MNOK ~~delivering~~30 from Q2 of last year. The corresponding figure for the ~~major~~first quarter ~~contracts~~of ~~that~~2003 ~~were~~was ~~signed~~MNOK in93. As previously communicated, the ~~previous~~current ~~quarter~~market for these activities is relatively weak.

Other activities (mainly Electronics Contract Manufacturing and Information Technology in NeraTel, Singapore) booked orders of MNOK 93 in first quarter, which is MNOK 20 less than in first quarter of 2002. As previously communicated, these activities are currently suffering under a weak market.

Operations

The Nera Group had operating revenues of MNOK 540 in the first quarter, compared to MNOK 681 for the first quarter of 2002, and down from MNOK 614 in fourth quarter 2002. As pointed out in the presentation of the results for fourth quarter 2002, this is in line with the company’s expectations, due to the low order intake for the transmission networks business area in the fourth quarter 2002.

~~Both Transmission Networks and Other Activities had a substantially lower~~Operations ~~business volume, while~~ ~~Satellite Communication and the broadband operations increased their turnover.~~ The Transmission Networks business area had a turnover of MNOK 258, compared to MNOK 378 in the same period last year. The corresponding figure for Satellite Communication was MNOK 172, compared to MNOK 161 last year. The broadband operations had a turnover of MNOK 31, compared to MNOK 20 last year, while Other Activities in NeraTel had a turnover of MNOK 78, compared to 122 MNOK last year.

InThe ~~spite~~Nera ofGroup ~~lower~~had ~~volumes, the company’s~~ operating ~~loss~~revenues ~~has been reduced. This is a consequence~~ of ~~a lowering~~MNOK of545 ~~expenses.~~in ~~Ordinary~~the ~~operating~~second ~~costs~~quarter ~~were MNOK 494~~of 2003, compared to MNOK ~~624~~ 649 in ~~the~~Q2 ~~previous year~~2002. ~~R&D~~The ~~expenses~~operating ~~were~~revenues ~~MNOK~~for ~~50,~~the ~~compared~~second quarter toare ~~MNOK~~on 79a inlevel ~~the~~with ~~previous~~Q1 ~~year~~2003.

~~The~~Transmission ~~reduction~~Networks ofproduced ~~costs is~~ a ~~result~~turnover of ~~efforts~~MNOK to293, ~~cut~~compared ~~expenses~~to inMNOK ~~the~~373 ~~Transmission~~last ~~Networks~~year. ~~business~~Satellite ~~are. These~~Communications ~~efforts~~had ~~have~~a ~~been~~turnover ~~ongoing~~of ~~throughout~~MNOK ~~the~~143, ~~first~~compared ~~quarter~~to MNOK 156 in Q2 2002. ~~New~~The ~~measures~~broadband ~~have been~~operations ~~announced, including~~produced ~~streamlining~~a turnover of ~~the~~MNOK ~~company’s~~32 compared ~~internal~~to ~~supply~~21 ~~chain~~in Q2 of last year, ~~which~~while ~~will~~other activities in NeraTel had a ~~reduce~~turnover ~~the~~of ~~workforce~~MNOK by77, upcompared to ~~90 employees~~MNOK 100 in Q2 of last year.

The operating loss for ~~the~~Q2 ~~first~~2003 ~~quarter~~is ~~was~~reduced to MNOK ~~24.6~~11, ~~compared~~from toMNOK 34 in Q2 2002. There has also been a ~~loss~~positive ofdevelopment in the operating income since Q1 ~~MNOK~~2003, ~~42.5~~confirming ~~last~~that ~~year.~~the ~~The~~effects of the cost cutting initiatives is as ~~operating~~expected. ~~loss~~Ordinary ~~situation~~operating ~~improved~~expenses ~~somewhat~~were ~~since~~MNOK ~~fourth~~489 ~~quarter~~in ~~2002~~Q2 2003, ~~which~~compared to ~~ended~~MNOK at612 ain ~~MNOK~~Q2 282002.8 ~~loss~~R&D costs for Q2 2003 were MNOK 47, compared to MNOK 51 in Q2 2002.

~~The~~Phase ~~Satellite~~1 ~~Communication~~of ~~business~~Transmission ~~area~~Networks’ ~~showed~~project ~~very~~to ~~good~~streamline ~~earnings~~its ~~for~~supply ~~the~~chain has ~~first~~been ~~quarter~~completed, ~~while~~with ~~both~~a reduction of the ~~Transmission~~ ~~Networks~~workforce ~~business~~by ~~are~~60 ~~and~~employees, the ~~broadband~~bulk ~~operations delivered~~of ~~operating~~whom ~~losses.~~are ~~For Transmission~~expected ~~Networks,~~to ~~the~~resign ~~operating~~in ~~loss~~Q3 ~~was~~2003. ~~MNOK~~A ~~40.7,~~second ~~compared~~phase tois ~~MNOK~~planned ~~53.5~~ for completion in the ~~corresponding~~ ~~period~~second inhalf ~~2002~~of 2003. ~~Satellite~~This ~~Communication~~phase ~~had~~entails ana ~~operating~~further ~~profit~~workforce ofreduction ~~MNOK~~by ~~27.5,~~up ~~nearly doubling~~to ~~its~~30 ~~profit~~employees, ofeffective ~~MNOK~~January 142004.4 The restructuring and workforce reductions in ~~the~~Bergen ~~corresponding~~and ~~period~~the restructuring of ~~last~~the ~~year.~~Nera ~~The~~Boston ~~operating~~operations ~~loss~~are ~~for~~currently ~~the broadband~~estimated ~~operations~~to ~~was~~necessitate ~~reduced~~provisions ~~from~~of MNOK ~~16.7~~40-50, all inof Q1which ~~2002,~~are expected to ~~MNOK~~be ~~11.5~~booked as restructuring provisions in Q1 the Q3 2003 accounts.

The restructuring of Nera Boston is a consequence of the company’s decision to move its CompactLink production to NeraTel, Singapore. The move of the Compact Link production is part of the Nera Group’s efforts to streamline its supply chain, and will result in more effective exploitation of production resources and will reduce production expenses for the product and the Nera Group’s total operating expenses. The move will enable a re-allocation of resources in Nera’s North American organisation and will improve its market focus.

Satellite Communications had another sound quarter. The business area produced an operating income of MNOK 26, compared to MNOK 17 in Q2 2002, yielding a net operating margin of 18 percent. The gross operating margin was 40 percent. Transmission Networks had an operating loss of MNOK 25 for the quarter, compared to a loss of MNOK 48 in Q2 2002. Compared to the previous quarter, the gross operating margin improved from 21 percent to 22 percent. The operating loss for the broadband operations was MNOK 11, compared to a loss of MNOK 7 last year. Nera’s other activities produced an operating loss of MNOK 1 in Q2 2003, compared to an operating income of MNOK 3 in Q2 2002.

Financial figures

~~The~~ Nera ~~Group’s~~had a financial income ~~was~~of ~~extraordinarily~~MNOK ~~high~~14 in the ~~first~~ second quarter, atof which MNOK ~~26.8, compared~~10 tois ~~MNOK~~ordinary ~~7.2~~financial ~~last~~income ~~year.~~and ~~The~~MNOK ~~high~~4 ~~financial~~is income isfrom ~~mainly~~associated companies. Last year, Nera had a ~~consequence~~financial loss of MNOK 29. Pre-tax profit for the second ~~sale~~quarter of ~~shares~~2003 inwas ~~TV Mobile~~thus (MNOK 6)3, ~~and~~compared to a ~~currency~~loss ~~gain~~ of MNOK 963 in Q2 2002.

~~Pre-tax~~Including ~~profit~~calculated ~~for~~taxes ~~the~~and ~~first~~minority ~~quarter was MNOK 2~~interests, ~~including~~the anNera ~~income~~Group ofhad ~~MNOK 1.7~~a ~~from associated~~net ~~company.~~loss ~~The~~for ~~result~~Q2 is2003 aof ~~marked~~MNOK ~~improvement~~6, ~~over~~compared ~~last~~to ~~year’s~~a ~~pre-tax~~net loss of MNOK ~~35.7,~~40 asfor ~~well~~Q2 aslast ~~over fourth quarter 2002, which showed an MNOK 30~~year.~~6 loss.~~

Including a calculated net tax income of MNOK 0.3 and minority interests of MNOK -8.3, the net loss for first quarter 2003 is MNOK 6.1, compared to a net loss of MNOK 35.5 in the first quarter 2002.

Balance sheets and liquidity

The company’s financial situation is robust, with, a satisfactory equity ratio and net cash position.

The Nera Group’s balance sheet as at 31 March 2003 was at the same level as at the start of the quarter, and approx. MNOK 300 lower than at the corresponding date in 2002. There are no significant changes in the balance sheet items for this quarter. The company had an equity of MNOK 1619, giving an equity ratio of 64.3 percent.

At the close of the quarter, the Nera Group had cash reserves of MNOK 757, compared to MNOK 796 at the start of the quarter.

Balance sheets and liquidity

The Nera Group produced a positive cash flow from operations of MNOK 115 for the second quarter. At the close of Q2 2003, the company thus had cash reserves of MNOK 835, an increase of MNOK 78 since the close of Q1 2003. Accounts receivable and inventories were reduced. The company’s equity was MNOK 1604, yielding an equity ratio of 66 percent.

The increase in cash reserves and reduction in expenses confirm that Nera’s operations are well under control. The company will maintain a close focus of its working capital development, where there is still potential for improvements. Nera expects some reduction in its cash reserves, i.a. as a consequence of an increased business volume.

Prospects

~~Political~~Although ~~unrest~~the ~~and~~geo-political ~~financial~~climate ~~uncertainty~~is ~~still~~somewhat ~~characterises~~more ~~the~~stable, Nera’s markets are ~~geo-political~~showing ~~situation~~few new impulses for growth. ~~Another~~More ~~factor~~optimistic ofsignals are, however, ~~uncertainty~~emerging isfrom ~~the~~other ~~economic~~telecom ~~effects~~market ofsegments ~~spread~~and ofthese may in the ~~SARS~~somewhat longer ~~virus~~term also prompt a recovery in Nera’s markets.

~~The~~New ~~Transmission~~investments ~~Networks~~in ~~business area expects~~ the ~~market~~transmission ~~to decline further, due to continued reluctance towards new construction of mobile~~ networks ~~globally. The Eastern European~~ markets ~~including Russia and the South-East Asian markets~~ are ~~expected to~~ still ~~provide a good volume of activity~~limited, ~~while~~but ~~certain~~Nera ~~Latin~~expects ~~American~~to ~~markets~~continue ~~seem~~ to ~~improve~~win ~~somewhat.~~contracts ~~Along with a number of single projects~~ in ~~other~~ ~~regions where Nera is well positioned, this leads~~ the company’s ~~management~~ toestablished ~~still consider it to be realistic maintaining the same business volume in this business area as in 2002 a viable possibility~~markets.

~~Nevertheless,~~With the ~~company~~change ~~focuses~~in onthe ~~further~~geo-political ~~cost~~climate, ~~reduction~~Satellite ~~efforts~~Communications ~~aimed~~will find atit more challenging to maintain its volume and margins, which should be ~~bringing~~expected ~~this~~to ~~part~~decline ofsomewhat. Nevertheless, the operating margin for the year ~~operation~~as ina ~~balance~~whole will be considerably above 10 percent.

~~With~~Due ~~regards~~ to ~~Satellite Communication,~~ the ~~geo-political~~increased ~~unrest~~volume ~~may contribute~~of toorders areceived ~~lasting~~for ~~high~~broadband ~~demand, but~~via ~~with the possibility that the market gradually levels out. At the same~~satellite ~~time~~solutions, the ~~company~~Wireless ~~makes~~Broadband ~~a consistent~~Access ~~effort~~business toarea ~~expand~~is ~~the~~expected ~~markets~~to ~~for the company’s maritime~~increase ~~communication~~its ~~solutions~~turnover ~~and~~in ~~for~~the ~~other areas~~remaining quarters of ~~use. All in all,~~ the ~~company~~year. ~~expects~~No amajor ~~relatively~~change ~~stable~~in business volume ~~for~~is ~~Satellite Communication,~~expected ~~but changes~~ in the ~~product~~company’s ~~mix~~other ~~may yield somewhat lower margins in the second half of the year~~activities.

NoNera’s ~~substantial~~ambition ~~changes~~to ~~are~~retain ~~expected~~profitability induring the ~~development~~course of ~~other~~2003 is upheld. The total volume of business ~~areas~~is expected to remain at the 2002 level.

~~The~~Bergen, ~~company’s~~24 ~~ambition~~July ~~to regain profitability during the course of~~ 2003 is ~~upheld .~~

Bergen, 28 April 2003

							Amounts in
Income Statements							NOK million
	1.1.-31.3.2003			1.1.-31.3.2002			Year 2002
Orders received		591,3			631,8			2 518,6
Operating revenue		539,7			680,7			2 444,8
Operating expenses		(494,1	)		(623,6	)		(2 255,1	)
Depreciation		(20,2	)		(20,8	)		(83,5	)
Operating income before R&D costs		25,4			36,3			106,2
Research and development		(50,0	)		(78,8	)		(239,5	)
Operating income (loss) before restructuring and write -downs		(24,6	)		(42,5	)		(133,3	)
Restructuring and write-downs					—			(11,1	)
Operating income (loss)		(24,6	)		(42,5	)		(144,4	)
Earnings from investments in associated companies		1,7			(0,4	)		(23,8	)
Net financial items		24,9			7,2			6,0
Income (loss) before tax		1,9			(35,7	)		(162,2	)
Taxes		0,3			10,8			33,7
Net income (loss)		2,2			(24,9	)		(128,5	)
Minority interest		(8,3	)		(10,6	)		(16,5	)
Net income (loss) after minority interests		(6,1	)		(35,5	)		(145,0	)
Earnings per share, primary (NOK)		(0,05	)		(0,29	)		(1,19	)


		Amounts in
Income statements		NOK million


	01 JAN - 30 JUN			01 JAN - 30 JUN
	2003			2002			Year 2002			Q2 2003			Q2 2002

Orders received		1 219.5			1 396.8			2 518.6			628.2			764.9
Operating revenue		1 084.2			1 330.0			2 444.8			544.5			649.2
Operating expenses		(982.8	)		(1 235.6	)		(2 255.1	)		(488.7	)		(611.9	)
Depreciation		(40.2	)		(41.5	)		(83.5	)		(20.0	)		(20.8	)

Operating income before R&D costs		61.2			52.9			106.2			35.8			16.5

Research and development		(96.9	)		(129.7	)		(239.5	)		(46.9	)		(50.8	)
Operating income (loss) before restructuring and write-downs		(35.7	)		(76.8	)		(133.3	)		(11.1	)		(34.3	)

Restructuring and write-downs		—			—			(11.1	)		—			—

Operating income (loss)		(35.7	)		(76.8	)		(144.4	)		(11.1	)		(34.3	)

Earnings from investments in associated companies		5.8			(25.8	)		(23.8	)		4.1			(25.4	)
Net financial items		34.8			4.1			6.0			9.9			(3.2	)

Income (loss) before tax		4.9			(98.5	)		(162.2	)		2.9			(62.9	)

Taxes		(5.2	)		27.6			33.7			(5.5	)		16.9

Net income (loss)		(0.3	)		(70.9	)		(128.5	)		(2.6	)		(46.0	)

Minority interest		(12.2	)		(4.6	)		(16.5	)		(3.8	)		6.0

Net income (loss) after minority interests		(12.5	)		(75.5	)		(145.0	)		(6.4	)		(40.0	)

Earnings per share, primary (NOK)		(0.10	)		(0.62	)		(1.19	)		(0.05	)		(0.33	)

						Amounts in
Balance Sheets						NOK million
	31.3.2003		31.12.2002			31.3.2002
Deferred tax asset		174,0		174,0			140,3
IT — Software		24,6		23,7			—
Goodwill		17,6		18,9			22,5
Property, plant and equipment		190,5		199,1			257,7
Financial non-current assets		150,0		161,5			213,4
Non-current assets		556,7		577,2			633,9
Inventories		354,3		382,9			493,9
Trade receivables		576,1		518,6			604,4
Other receivables		274,4		285,3			362,5
Cash and cash equivalents		756,6		795,8			730,8
Current assets		1 961,4		1 982,6			2 191,7
TOTAL ASSETS		2 518,1		2 559,8			2 825,6
Shareholders’ equity		1 618,8		1 612,6			1 688,8
Long-term liabilities		75,4		92,0			80,7
Current liabilities		823,9		855,2			1 056,2
TOTAL EQUITY AND LIABILITIES		2 518,1		2 559,8			2 825,6
Interest bearing current liabilities		3,1		4,8			7,8
Interest bearing long-term liabilities		3,9		4,3			7,6
Minority shareholders’ interest		255,8		240,2			167,6
Change in equity :
Equity as of 01.01		1 612,6		1 728,1
							1 728,1
Net income (loss)		2,2		(128,5	)
							(24,9	)
Additional treasury stock				(2,8	)
Additional minority interest				126,4
Dividend				(26,8	)
Other equity changes				(6,6	)
Translation differences		4,0		(77,2	)		(14,4	)
Equity as of end of period		1 618,8		1 612,6			1 688,8


		Amounts in
Balance Sheets		NOK million


	30 JUN 2003			31 DEC 2002			30 JUN 2002

Deferred tax asset		174.0			174.0			179.7
IT — Software		25.2			23.7			—
Goodwill		16.5			18.9			21.3
Property, plant and equipment		183.4			199.1			242.3
Financial non-current assets		151.9			161.5			167.7

Non-current assets		551.0			577.2			611.0

Inventories		322.0			382.9			459.1
Trade receivables		471.6			518.6			590.9
Other receivables		244.9			285.3			278.7
Cash and cash equivalents		834.7			795.8			689.2

Current assets		1 873.2			1 982.6			2 018.0

TOTAL ASSETS		2 424.2			2 559.8			2 629.0

Shareholders’ equity		1 605.5			1 612.6			1 595.9
Long-term liabilities		72.9			92.0			78.6
Current liabilities		745.8			855.2			954.5

TOTAL EQUITY AND LIABILITIES		2 424.2			2 559.8			2 629.0

Interest-bearing current liabilities		1.8			4.8			4.3
Interest-bearing long-term liabilities		3.2			4.3			6.1
Minority shareholders’ interest		251.7			240.2			142.5

Change in equity:
Equity as of 01 JAN		1 612.6			1 728.1			1 728.1
Net income (loss)		(0.3	)		(128.5	)		(70.9	)
Additional treasury stock		—			(2.8	)		—
Additional minority interest		—			126.4			(2.8	)
Dividend		(6.0	)		(26.8	)		—
Other equity changes		—			(6.6	)		—
Translation differences		(0.8	)		(77.2	)		(58.5	)

Equity as of end of period		1 605.5			1 612.6			1 595.9

							Amounts
							in NOK
Statements of cash flows							million
	1.1.-31.3.2003			1.1.-31.3.2002			Year 2002
Net income (loss)		2,2			(24,9	)		(128,5	)
Depreciation		20,2			20,8			83,5
Change in inventories, trade receivables/payables and other working capital		5,6			124,6			210,8
Other operational related adjustments		(72,6	)		(88,5	)		(131,2	)
Net cash provided by (used in) operating activities		(44,5	)		31,9			34,6
Proceeds from sales of property, plant and equipment		0,7			0,9			7,9
Capital expenditures		(9,5	)		(13,7	)		(61,4	)
Other investments and sales		21,4			7,9			110,7
Net cash provided by (used in) investing activities		12,6			(4,8	)		57,2
Proceeds from issuance of shares								37,7
Changes, Treasury stock								(2,8	)
Dividends paid								(26,8	)
Net changes in liabilities		(2,2	)		(185,3	)		(191,7	)
Net cash provided by (used in) financing activities		(2,2	)		(185,3	)		(183,6	)
Effect of changes in currency exchange rates		(5,1	)		(10,4	)		(11,9	)
Net change in cash and cash equivalents		(39,2	)		(168,6	)		(103,7	)
Cash and cash equivalents at beginning of period		795,8			899,5			899,5
Cash and cash equivalents at end of period		756,6			730,9			795,8


		Amounts in
Statement of cash flows		NOK million


	1 JAN - 30 JUN			1 JAN - 30 JUN
	2003			2002			Year 2002

Net income (loss)		(0.3	)		(70.9	)		(128.6	)
Depreciation		40.2			41.5			83.5
Change in inventories, trade receivables/payables and other working capital		104.0			198.4			210.8
Other operation-related adjustments		(73.0	)		(105.1	)		(131.2	)

Net cash provided by (used in) operating activities		70.9			63.9			34.6

Proceeds from sales of property, plant and equipment		1.2			3.6			7.9
Capital expenditures		(21.8	)		(35.1	)		(61.4	)
Other investments and sales		15.3			46.5			110.7

Net cash provided by (used in) investing activities		(5,3	)		15.1			57.2

Proceeds from issuance of shares		—			—			37.7
Changes, treasurystock		—			(2.8	)		(2.8	)
Dividends paid		(6.0	)		—			(26.8	)
Net changes in liabilities		(4.1	)		(190.4	)		(191.7	)
Net cash provided by (used in) financing activities		(10.1	)		(193.2	)		(183.6	)

Effect of changes in currency exchange rates		(16.6	)		(16.5	)		(11.9	)

Net change in cash and cash equivalents		38.9			(130.7	)		(103.7	)

Cash and cash equivalents at beginning of period		795.8			899.5			899.5

Cash and cash equivalents at end of period		834.7			768.7			795.8

											Amounts in NOK
Orders received by Business Area											million
Business Areas	1.1.-31.3.2003				1.1.-31.3.2002				Year 2002
Transmissions Networks		318	53,9	%		309	48,9	%		1 243		49,4	%
Mobile Satellite Communications		170	28,8	%		174	27,6	%		677		26,9	%
Wireless Broadband Access		9	1,6	%		36	5,6	%		215		8,5	%
Others/eliminations		93	15,8	%		113	17,9	%		384		15,3	%
Total		591	100,0	%		632	100,0	%		2 519		100,0	%


		Amounts in NOK
Orders received, by business area		million

Operating revenues by Business Area											Amounts in NOK
	01 JAN - 30 JUN				01 JAN - 30 JUN
											million
Business area	2003				2002				Year 2002					Q2 2003				Q2 2002
Business Areas	1.1.-31.3.2003				1.1.-31.3.2002				Year 2002
Transmission Networks		687	56.3	%		670	48.0	%		1 243		49.3	%		368	58.6	%		361	47.2	%
Transmissions Networks		258	47,8	%		378	55,6	%		1 343		54,9	%
Satellite Communications		296	24.3	%		464	33.2	%		677		26.8	%		126	20.1	%		289	37.8	%
Mobile Satellite Communications		172	31,9	%		161	23,7	%		617		25,2	%
Wireless Broadband Access		72	5.9	%		47	3.4	%		215		8.6	%		62	9.9	%		12	1.6	%
Wireless Broadband Access		31	5,7	%		20	2,9	%		69		2,8	%
Other activities/eliminations		165	13.5	%		216	15.4	%		384		15.3	%		71	11.4	%		103	13.4	%
Others/eliminations		78	14,5	%		122	17,9	%		417		17,1	%
Total		1 220	100.0	%		1 397	100.0	%		2 519		100.0	%		628	100.0	%		765	100.0	%
Total		540	100,0	%		681	100,0	%		2 445		100,0	%

Operating Income (loss) before restr.and write-down by Business
Area							Amounts in NOK
							million
Business Areas	1.1.-31.3.2003			1.1.-31.3.2002			Year 2002
Transmissions Networks		(40,7	)		(53,5	)		(165,2	)
Mobile Satellite Communications		27,5			14,4			68,8
Wireless Broadband Access		(11,5	)		(16,7	)		(52,4	)
Others/eliminations		0,2			13,3			15,5
Total		(24,6	)		(42,5	)		(133,3	)


		Amounts in NOK
Operating revenues, by business area		million


	01 JAN - 30 JUN				01 JAN - 30 JUN
Business area	2003				2002				Year 2002				Q2 2003				Q2 2002

Transmission Networks		551	50.8	%		751	56.5	%		1 343	54.9	%		293	53.9	%		373	57.4	%
Satellite Communications		315	29.1	%		317	23.8	%		617	25.2	%		143	26.2	%		156	24.0	%
Wireless Broadband Access		62	5.7	%		41	3.0	%		69	2.8	%		32	5.8	%		21	3.2	%
Other activities/eliminations		156	14.4	%		221	16.7	%		417	17.1	%		77	14.1	%		100	15.4	%

Total		1 084	100.0	%		1 330	100.0	%		2 445	100.0	%		545	100.0	%		649	100.0	%


		Amounts in NOK
Operating income (loss) before restructuring and write-down, by business area		million


	01 JAN - 30 JUN			01 JAN - 30 JUN
Business area	2003			2002			Year 2002			Q2 2003			Q2 2002

Transmission Networks		(65.8	)		(101.0	)		(165.2	)		(25.1	)		(47.5	)
Satellite Communications		53.0			31.4			68.8			25.5			17.0
Wireless Broadband Access		(22.2	)		(23.3	)		(52.4	)		(10.7	)		(6.6	)
Other activities/eliminations		(0.7	)		16.1			15.5			(0.8	)		2.8

Total		(35.7	)		(76.8	)		(133.3	)		(11.1	)		(34.3	)

Orders received by Geographical Destinations											Amounts in NOK
											million
Geographical Destinations	1.1.-31.3.2003				1.1.-31.3.2002				Year 2002
Norway		90	17,6	%		62	9,8	%		281		11,2	%
Great Britain		22	3,8	%		15	2,4	%		197		7,8	%
Rest of Europe		105	17,7	%		99	15,7	%		442		17,5	%
America		134	22,6	%		178	28,2	%		545		21,6	%
Africa		7	1,1	%		51	8,1	%		114		4,5	%
Asia		212	33,6	%		205	32,5	%		899		35,7	%
Oceania		21	3,6	%		21	3,3	%		41		1,7	%
Total		591	100,0	%		632	100,0	%		2 519		100,0	%


		Amounts in
Operating revenues, by geographical destination		NOK million

Operating revenues by Geographical Destinations											Amounts in NOK
	01 JAN - 30 JUN				01 JAN - 30 JUN
											million
Geogr. destination	2003				2002				Year 2002					Q2 2003				Q2 2002
Geographical Destinations	1.1.-31.3.2003				1.1.-31.3.2002				Year 2002
Norway		195	15.9	%		127	9.0	%		281		11.2	%		105	16.6	%		65	8.6	%
Norway		85	15,8	%		45	6,7	%		276		11,3	%
United Kingdom		34	2.8	%		167	12.0	%		197		7.8	%		12	1.9	%		152	19.9	%
Great Britain		34	6,4	%		21	3,1	%		110		4,5	%
Rest of Europa		254	20.8	%		271	19.4	%		442		17.5	%		149	23.7	%		172	22.5	%
Rest of Europe		114	21,2	%		110	16,1	%		498		20,4	%
Americas		247	20.3	%		282	20.2	%		545		21.6	%		113	18.0	%		104	13.6	%
America		100	18,4	%		186	27,4	%		538		22,0	%
Africa		21	1.7	%		74	5.3	%		114		4.5	%		14	2.4	%		23	3.0	%
Africa		20	3,7	%		33	4,9	%		105		4,3	%
Asia		397	32.6	%		444	31.8	%		899		35.7	%		184	29.3	%		238	31.1	%
Asia		179	33,1	%		274	40,2	%		863		35,3	%
Oceania		72	5.9	%		32	2.3	%		42		1.7	%		51	8.1	%		11	1.3	%
Oceania		8	1,4	%		11	1,7	%		55		2,2	%
Total		1 220	100.0	%		1 397	100.0	%		2 519		100.0	%		628	100.0	%		765	100.0	%
Total		540	100,0	%		681	100,0	%		2 445		100,0	%


		Amounts in
Operating revenues, by geographical destination		NOK million


	01 JAN - 30 JUN				01 JAN - 30 JUN
Geogr. destination	2003				2002				Year 2002				Q2 2003				Q2 2002

Norway		155	14.3	%		107	8.1	%		276	11.3	%		70	12.8	%		62	9.6	%
United Kingdom		58	5.4	%		36	2.7	%		110	4.5	%		24	4.4	%		15	2.3	%
Rest of Europa		215	19.8	%		237	17.8	%		498	20.4	%		101	18.6	%		127	19.6	%
Americas		216	19.9	%		342	25.7	%		538	22.0	%		117	21.5	%		155	23.9	%
Africa		30	2.8	%		56	4.2	%		105	4.3	%		10	1.8	%		22	3.4	%
Asia		392	36.2	%		511	38.4	%		863	35.3	%		213	39.1	%		238	36.7	%
Oceania		18	1.6	%		41	3.1	%		55	2.2	%		10	1.8	%		29	4.5	%

Total		1 084	100.0	%		1 330	100.0	%		2 445	100.0	%		545	100.0	%		649	100.0	%

Presentation ~~1st~~Q2 ~~Quarter~~ 2003 Oslo, 2925 ~~April~~July 2003

Bjorn Ove Skjeie Chief Executive Officer

~~Overview~~Heading ~~Nera~~towards ~~Group~~profitability atPositive ~~break~~pre-~~even~~tax ~~for~~result in Q2 as in Q1 ~~Lower~~Transmission ~~operational~~operations ~~costs~~closer ~~Higher~~to ~~financial~~break ~~revenues~~even Transmission's quarterly order intake ~~back~~further ~~above~~strengthened ~~MNOK 300~~ Satellite Communication ~~showed~~and ~~good~~NeraTel ~~volume~~defends ~~and~~profitability adespite 16challenging ~~percent~~markets ~~operating~~Nera ~~margin~~maintains ~~Nera~~ambition ~~restates~~on ~~the~~a ~~ambition~~2003 ofbusiness ~~regaining~~volume at 2002 level and regain profitability during ~~2003~~the year

Key figures ~~(Amounts in NOK mill.) 1ST QUARTER 1ST QUARTER TOTAL 2003 2002 2002 ORDERS RECEIVED 591 632 2 519 OPERATING REVENUES 540 681 2 445 EBIT -25 -43 -144 PRE-TAX PROFIT 2 -36 -162~~

Quarterly orders received by business area

~~Market~~Good ~~outlook~~volume of medium sized orders Norway (1FLO/IKT) ~~Transmission~~48 ~~Networks~~MNOK ~~market~~Fiji** ~~Still~~45 ~~weak~~MNOK ~~development~~Jamaica in40 ~~mobile~~MNOK ~~networks~~Kazakstan ~~Positive~~32 ~~potential~~MNOK ~~for~~Philippines ~~Nera~~24 inMNOK ~~other~~Italy ~~segments~~17 ~~Still~~MNOK ~~positive~~Thailand ~~development~~16 ~~for~~MNOK ~~Fixed~~Saudi ~~Wireless~~Arabia ~~Access~~15 -MNOK ~~Nera~~Korea* ~~expands~~14 ~~geographical~~MNOK ~~scope~~Morocco 12 MNOK * Satcom ** Broadband

(QUARTERLY ORDERS RECEIVED BY TRANSMISSION NETWORKS BAR GRAPH)

Quarterly orders received by market Transmission Networks

Market outlook (21) ~~Satellite~~Transmission ~~market~~Networks ~~Land-mobile~~ market ~~expected~~Some tomore ~~level~~optimism ~~out~~in ~~gradually~~the ~~Introduction~~general oftelecom ~~new products expected to bring growth to maritime~~ market, ~~Still~~but ~~stable,~~still ~~high~~low ~~activity~~investment level in ~~the~~global ~~gateway~~transmission market ~~New~~Nera ~~areas~~wins oforders ~~use~~in ~~increase~~countries ~~sales~~where ofit ~~satellite~~is ~~phones~~well ~~Satellite~~positioned ~~broadband~~Fixed ~~market~~Wireless ~~seems~~Access ~~digital~~projects ~~by nature - no major contracts expected~~ in Q2all regions

Market outlook (32) ~~Other~~Satellite ~~business~~market ITLand ~~Networks~~mobile ~~stable~~market ~~Still~~weaker ~~weak~~as ~~outlook~~expected ~~for~~Increased ~~Contract~~activity ~~Manufacturing~~expected in other market segments Gateway market proves healthy Significant interest in broadband satellite

~~OPEX~~Rural ~~Development~~communication ^for ~~R&D~~Fiji -Islands ~~sales~~Turn &key ~~admin~~package: HUB and 11 m antenna for connecting selected Fiji Islands to the international data and telephone network Initially 87 remote terminals providing: Voice over IP Broadband for many applications. ~~expenses~~Tele-medicine ^Distance ~~Nera~~learning ~~Group~~Local ^administration ~~Transmission~~Local ~~Networks~~business ~~(Distributed~~e.g. ~~cost~~related ~~Nera~~to ~~Singapore~~tourism ~~not~~and ~~included)~~agriculture

~~Efficiency~~Market ~~improvement~~outlook ~~programs~~(3) ~~2003~~Other ~~Supply~~business ~~chain~~IT ~~improvement under implementation~~Networks: ~~Effect~~Slow -market, upfocusing tobusiness 90Contract ~~man-years Other efficiency EMEA improvement initiatives~~Manufacturing: ~~Effect~~Low, -but 10stable ~~to 20 man-years Further initiatives following conclusions from sourcing studies under implementation~~activity

~~Ambitions~~Efficiency ~~ahead~~improvement ~~Regain~~programs ~~profitability~~Supply ~~during~~chain ~~2003~~project ~~Continued~~in ~~focus~~Bergen onA ~~making~~reduction ~~Transmission~~of ~~business~~60 ~~more~~man ~~efficient~~years ~~Secure~~implemented ~~Transmission~~Phase ~~business~~2: ~~volume~~Reduction ~~above~~of ~~MNOK~~up ~~300~~to ~~per~~30 ~~quarter~~man ~~throughout~~years ~~2003~~in ~~Further~~second ~~strengthen~~half ~~Satellite~~Compact ~~Communication's~~Link ~~market~~production ~~position~~to be moved from Boston to Singapore Restructuring of Boston office to be implemented

(OPERATIONAL TARGET (SHORT TERM) TRANSMISSION NETWORKS GRAPH)

Operational Target (Short Term) Transmission Networks B/E-Target (Quarterly sales = 325 MNOK) Quarterly Sales (MNOK) B/E Target = 325/Q

Focus on the market Increase business volume Focused approach on major, identified transmission projects Be aggressive in satcom markets Develope new distribution channels Reach profitability asap and keep tight cost control Maintain financial strength and strategic flexibilty

Bjorn Olafsson Chief Financial Officer

Financial highlights Q1Q2 ~~financials~~Continued ~~are~~improvement ~~favourably~~in ~~affected~~operational byperformance Substantial operating cashflow through Q2 and very satisfactory cash performance Continued excellent performance in ~~Satellite~~SatCom ~~Communications~~Improved ~~Cost~~Transmission ~~reductions~~results ~~yielding~~Broadband ~~visible~~business ~~results~~at ~~Exceptional~~same ~~net~~level ~~financial~~as ~~result~~Q1 positive Q2 order intake Lower Contract Manufacturing business volume

Income ~~statements~~statement

Book to bill Transmission Networks Q1 - 2000 Q2 - 2000 Q3 - 2000 Q4 - 2000 Q1 - 2001 Q2 - 2001 Q3 - 2001 Q4 - 2001 Q1 - 2002 Q2 - 2002 Q3 - 2002 Q4-2002 Q1-2003 Q2-2003 Orders received/Sales 0.9787 1.7837 1.2585 1.0626 0.9014 0.8364 0.6687 0.6239 0.8175 0.9678 1.42 0.6645431 1.2325581 1.26 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Orders received Sales

OPEX Development R&D + sales & admin. expenses Nera Group Transmission Networks

Operating profit before special charges by business area

(MARGIN DEVELOPMENT TRANSMISSION-SATELLITE BAR GRAPHS)

1997 1998 1999 2000 2001 2002 Q1-03 Q2-03 Gross margin % 33 25 30 30 28 21 21 22 Oper. margin % 2.8 4 8.5 8.9 7.3 -12.3 -15.8 -8.6 North 45.9 46.9 45 43.9 1997 1998 1999 2000 2001 2002 Q1-03 Q2-03 Gross margin % 35 30 33 40 36 35 37 40 Oper. margin % 9.1 2 4.9 13.8 10.8 11.2 16 18 45.9 46.9 45 Margin development Transmission/Satellite Transmission Satellite

Balance ~~Sheets~~Sheet

Net cash position (Cash - interest bearing debt) Q4 - 1995 Q4 - 1996 Q2 - 1997 Q4 - 1997 Q2 - 1998 Q3 - 1998 Q4 - 1998 Q1 - 1999 Q2 - 1999 Q3 - 1999 Q4 - 1999 Q1 - 2000 Q2 - 2000 Q3 - 2000 Q4 - 2000 Q1 - 2001 Q2 - 2001 Q3 - 2001 Q4 - 2001 Q1 - 2002 Q2 - 2002 MNOK Q3 - 2002 Q4 - 2002 Nera Singapore Nera Norway Q1 - 2003 Q2 - 2003

(WORKING CAPITAL - REVENUE-QUARTER BAR GRAPH)

Working ~~capital~~Capital - Revenue/Quarter Q4-1995 Q4-1996 Q2-1997 Q4-1997 Q2-1998 Q3-1998 Q4-1998 Q1-1999 Q2-1999 Q3-1999 Q4-1999 Q1-2000 Q2-2000 Q3-2000 Q4-2000 Q1-2001 Q2-2001 Q3-2001 Q4-2001 Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 ~~East~~Q2-2003 Working capital 510 739 1028 881 773 573 713 666 556 367 431 190 309 322 331 280 595 664 498 412 379 330 336.4 373.9 ~~West 30~~294.65 ~~38.6~~Revenues/Quarter ~~34.6~~683 ~~31.6~~862 764 937 664 724 874 713 680 635 738 615 548 544 843 724 752 643 774 681 649 501 614 540 545 North 45.9 46.9 45 43.9 MNOK Revenue/Quarter Working Capital

(TRADE RECEIVABLES - INVENTORIES - TRADE PAYABLES (DAYS) LINE GRAPH)

Trade receivables/ Inventories/trade payables (days) 1995 1996 1997 1998 1999 2000 2001 2002 Q1-03 Q2-03 Receivables 76 91 102 88 77 111 97 76 96 78 Inventories 82 77 67 51 40 38 67 56 59 53 Payables 41 43 48 48 29 45 53 46 50 46 Days

Statements of cash ~~flows~~flow

Financial key figures

QOutlook &second Ahalf ~~Oslo,~~2003 17Restructuring ~~February~~provisions in Q3 estimated to 40 - 50 MNOK Number of employees will be further reduced Positive development in order back log and book to bill through first half will effect following quarters positively Cash flow and cash balances as of first half can hardly be defended second half Nera maintains its ambition on total business volume 2003 at same level as 2002 and return to operating profit modus during the year

Q & A Oslo, 25 July 2003 Version 8

Appendix

Orders received by business area

Invoicing of order backlog* ~~2nd~~3rd quarter 2003 ~~3rd~~4th quarter 2003 Total NOK mill. 2nd quarter 2004 and later ~~4th~~1st quarter ~~2003~~2004 * Incl. Nera Telecommunications, Singapore

Operating revenue by business area

Quarterly operating revenue by business area

(ORDERS-REVENUE-EBIT DEVELOPMENT TRANSMISSION-SATELLITE)

~~Book~~Q1 to2001 ~~bill~~pro ~~Transmission~~forma ~~Networks~~Q2 2001 pro forma Q3 2001 pro forma Q4 2001 pro forma Q1 -2002 ~~2000~~Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 -2003 ~~2000~~Orders Q3received -511 ~~2000~~583 Q4450 347 309 361 338 235 318 368 Operating revenue 564 627 537 549 378 373 238 354 258 293 Oper. inc. (EBIT) 50.4 49.8 37.9 31.8 -53.5 ~~2000~~-47.5 Q1-43.3 -21 -40.7 -25.1 Q1 2001 Q2pro -forma Q2 2001 Q3pro -forma Q3 2001 Q4pro -forma Q4 2001 Q1pro -forma Q1 2002 Q2 - 2002 Q3 - 2002 Q4- 2002 Q1- 2003 Q2 2003 Orders received~~/Sales~~ ~~0.9787~~239 ~~1.7837~~129 ~~1.2585~~119 ~~1.0626~~142 ~~0.9014~~174 ~~0.8364~~289 ~~0.6687~~109 ~~0.6239~~103 ~~0.8175~~170 ~~0.9678~~126 ~~1.42~~Operating 0revenue 160 150 131 169 161 156 154 146 172 142 Oper.~~6645431~~ 1inc.~~2325581~~ ~~West~~(EBIT) 3016.67 3813.68 3413.63 3121.63 ~~North 45~~14.94 4617 22.95 4515 4327.95 25.5 Orders/revenue/EBIT ~~received~~development ~~Sales~~Transmission/Satellite Transmission Satellite

Q1 2001 pro forma Q2 2001 pro forma Q3 2001 pro forma Q4 2001 pro forma Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Orders received 511 583 450 347 309 361 338 235 318 Operating revenue 564 627 537 549 378 373 238 354 258 Oper. inc. (EBIT) 50.4 49.8 37.9 31.8 -53.5 -47.5 -43.3 -21 -40.7 Q1 2001 pro forma Q2 2001 pro forma Q3 2001 pro forma Q4 2001 pro forma Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Orders received 239 129 119 142 174 289 109 103 170 Operating revenue 160 150 131 169 161 156 154 146 172 Oper. inc. (EBIT) 16.7 13.8 13.3 21.3 14.4 17 22.5 15 27.5 Orders/revenue/EBIT development Transmission/Satellite Transmission Satellite

Quarterly operating revenue by market Transmission Networks

WBA - quarterly "fixed" cost level (R&D + sales and admin.) Q2-2000 Q3-2000 Q4-2000 Q1-2001 Q2-2001 Q3-2001 Q4-2001 Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 East 20 33 43 58 71 51 45 19 16 17 16 14 14 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MNOK

Orders received by market

Orders received by market Asia 3532.96% (3231.48%)* Percentage per region by 3130 ~~March~~June 2003 Africa 1.17% (85.13%)* Americas 2220.63% (2820.2%)* Oceania 35.69% (32.3%)* UK 32.8% (212.40%)* Norway 15.29% (9.90%)* Rest of Europe 1720.78% (1519.74%)* * Figures in brackets are Orders received per 3130.0306.02

Operating revenue by market

(OPERATING MARGINS* + BEFORE R&D, RESEARCH & DEVELOPMENT)

Operating margins* before R&D 1996 1997 1998 1999 2000 2001 2002 Per 3130.0306.2003 East 0.139 0.114 0.09 0.142 0.153 0.062 0.~~069~~043 0.~~047~~056 MNOK 1996 1997 1998 1999 2000 2001 2002 per quarter 2003 per quarter 3-D Column 193 204 200 216 287 347 79 50 51 47 51 59 (6,6%)* (7,8%)* Research & Development ~~347~~ (912.50%)* * Operating income before R& D as % of ~~sales~~operating revenue (1) Adjusted for special charges * R&D as % of ~~sales~~operating revenue (11,3%)* 240 (9.8%)* 97 (98.39%)* (1)

Working capital in % of annualised sales Q4-1995 Q4-1996 Q2-1997 Q4-1997 Q2-1998 Q3-1998 Q4-1998 Q1-1999 Q2-1999 Q3-1999 Q4-1999 Q1-2000 Q2-2000 Q3-2000 Q4-2000 Q1-2001 Q2-2001 Q3-2001 Q4-2001 Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 East 19 31 34 24 29 20 20 23 20 14 15 8 14 15 10 10 20 26 16 15 15 13.5 13.8 17.3 13.5 West North 45.9 46.9 45 43.9 %

Table of Contents

Filing Compare · NERA ASA