Highlights since Q4 reporting:
· Recession in key markets with reduced and postponed 
defence spending in the communication segment still 
impacting the level of activity.
· Continuing low activity levels during the quarter 
for all Business Units.
· Financial results for Q1 are in line with 
expectations. 
· A number of business opportunities outside 
traditional markets are being explored utilizing 
existing niche technology competence and 
manufacturing capabilities. However, this is unlikely 
to yield a significant short term financial impact. 

The Group is still experiencing a weak revenue 
development during Q1 of 2012. The financial crisis 
in key markets has continued to have a negative 
impact on defence spending within the communication 
segment. As a consequence, this has negatively 
influenced Comrod's order intake and activity levels 
for the quarter.  

In spite of the above, the Group is still 
experiencing positive feedback from specific market 
areas on new and existing products. However, the 
timing for converting this positive feedback into 
firm orders is still uncertain.    

In view of the current situation, numerous actions 
have been taken to strengthen the Business Unit's 
product portfolio and position in the market. 

The Group's overall financial performance during Q1 
is considered weak. 

Revenues for Q1 of 2012 were MNOK 55.5 compared with 
MNOK 84.7 in 2011. Operating profit before 
depreciation (EBITDA) for Q1 2012 was MNOK -0.3 (MNOK 
10.8). 

OUTLOOK
The financial crisis affecting key Comrod markets is 
still resulting in reduced public spending levels for 
some of the Group's key products. This is likely to 
continue to have a negative impact on the Group's 
business activities during the year. The Board is not 
satisfied with the Group's financial performance for 
Q1 2012. However, the Board and Management have acted 
on a number of initiatives aimed at identifying 
alternative revenue streams for the Group utilising 
its key niche technologies and flexible manufacturing 
platforms. The majority of these initiatives are 
within the civil technology segments, and if 
successful are likely to decrease the current strong 
dependence of its established defence products. 
However, these initiatives, if successful, are likely 
to demonstrate a slow and gradual impact on revenue. 
The ongoing follow up of short and medium term 
actions to ensure that the Group's business 
activities are aligned to the current market 
opportunities will still be a continued focus area. 

As outlined above, the Board acknowledges the current 
market instability and expects this to continue 
during 2012. However, the Group has reason to believe 
that the market conditions for its communication 
products are likely to improve slightly compared to 
current activity levels towards the end of 2012.

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 220 employees and had operating revenues of 
NOK 286 million in 2011 and NOK 332 million in 
2010.

For more information, please visit www.comrod.com