Highlights since Q2/first half reporting:
· Global recession with reduced and postponed defence 
spending starting to impact on activity levels.
· Acquisition of Wibe Telescopic Mast AB has been 
closed.
· Reduced activity level for BU Norway but still 
delivering satisfactory financial contributions.
·Continued weak development and performance for BU 
France.

During Q3 2011 Comrod Communication acquired 80% of 
the shares of WIBE TM AB in Sweden with an obligation 
to acquire the remaining shares within two years. The 
purchase price for the 80% shareholding of Wibe TM 
was MSEK 12.5. 
WIBE TM brings an extended aluminium mast product 
range to Comrod Group's current composite mast 
offering. This will provide Comrod with a unique 
opportunity to expand its tactical mast offering to 
the global civil and defence markets. This expansion 
is fully in line with Comrod's strategic plan to 
develop and expand the Group through additional high-
value products designed for demanding defence and 
high-end niche civil markets. 
Revenues from Business Unit Sweden for Q3 2011 were 
MNOK 0.8 effective from the month of September. 
EBITDA for the same period was MNOK - 0.3. 
For further information see attached note. 

The Group has experienced a weaker revenue 
development in the first three quarters of 2011. In 
addition to the impact of the unstable situation in 
the Middle East and North Africa the global financial 
crisis with fast reducing public spending in many 
countries has now started to directly impact on short 
term defence spendings. This has negatively impacted 
on Comrod's order intake and activity levels. In 
particular the impact of postponed and reduced US 
defence programmes are starting to hurt Comrod. 

However, in spite of the above the Group is still 
experiencing positive feedback from specific market 
areas with new and existing products. The timing of 
conversion of this positive feedback into tangible 
sales is still uncertain.    

Despite a positive contribution from BU Norway, the 
Group's overall financial performance during Q3 was 
weak. 

Revenues for Q3 2011 were MNOK 59.0 compared with 
MNOK 74.3 in 2010. (Figures for corresponding period 
of 2010 will hereafter be shown in parentheses). 
Revenues for the first three quarters of 2011 
totalled MNOK 217.9 (MNOK 233.2). 

Operating profit before depreciation (EBITDA) for Q3 
2011 was MNOK - 2.9 (MNOK 11.1). EBITDA for the first 
three quarters of 2011 amounted to MNOK 11.9 (MNOK 
35.1).
EBITDA for Q3 2011 includes a total non-recurring 
cost of MNOK 9.0. This includes cost related to the 
acquisition of Wibe Telescopic Masts in Sweden, 
change of CEO and payroll cost of a staff reduction 
plan for BU France. 

OUTLOOK
The fast developing global financial crisis is 
resulting in reduced public spending levels which are 
creating a volatile market situation for some of the 
Group's key products. This is likely to negatively 
impact on the Group's business activities moving into 
Q4 2011 and early 2012. This view is in line with 
what has been previously communicated to the market. 
The Board is not satisfied with the Group's current 
financial performance, but acknowledges that the 
current volatile market is challenging. The 
establishment and follow up of short and medium term 
actions to ensure that the Group's business 
activities are aligned to the current market 
opportunities will be a continued key focus area for 
both the Management and the Board. The short term 
impact of the US defence spending cuts could be 
significant for the Group as the US defence market is 
considered to be approximately 40-50% of the world 
market. However, the communication segment of this 
defence market (which is Comrod's space) is likely to 
be less impacted than other segments.

The Group continues to explore mergers and 
acquisition targets, both in Europe and in other 
strategic regions.  

As outlined above the Board acknowledges the current 
market instability and expects this to continue in 
the fourth quarter of 2011 and early 2012. However, 
the Group has received positive feedback from its 
main customers regarding technical performance of its 
key products and general service levels. 

Recovery Plan
An action plan to regain profitability has been 
initiated and parts are already being implemented. 
This includes both short term cost cutting measures 
and special focus on new revenue opportunities. In 
line with this plan, initial personnel adjustments 
have already been actioned both for BU Norway and BU 
France. Financial impact will be gradually effective 
from 4Q 2011.

For further information please contact: 

Ole Gunnar Fjelde CEO, of Comrod Communication Group, 
mobile phone +47 959 34 541 or ogf@comrod.com
Kari Duestad, CFO, of Comrod Communication Group, 
mobile phone +47 924 63 690  or kd@comrod.com

About Comrod Communication Group:
Comrod Communication ASA is a Norwegian public 
limited company headquartered at Tau outside 
Stavanger in the south-western Norway. The company 
develops and manufactures tactical masts, antennas 
and antenna systems, power supply, battery chargers 
and commercial products. Comrod Communication`s main 
focus is on the defense market. The company has 
around 215 employees and had operating revenues of 
NOK 332 million in 2010 and NOK 344 million in 
2009.

For more information, please visit www.comrod.com