Net Insight AB: YEAR-END REPORT 2011

Net Insight AB [publ] Corporate Reg. No 556533-4397

Fourth Quarter 2011

· Net Sales of SEK 80.3 million (88.1) a decrease of 8.9% compared to the same period previous year. In comparable currencies the decrease was 7.6%.

· Operating earnings of SEK 16.1 million (15.7), corresponding to an operating margin of 20.0% (17.8).

· Earnings per share of SEK 0.06 (0.05).

· Total cash flow of SEK 0.8 million (31.6).

January - December 2011

· Net sales of SEK 294.5 million (287.7) corresponding to a growth of 2.4% compared to the same period previous year. The growth rate in comparable currencies amounts to 7.8%.

· Operating earnings of SEK 42.8 million (43.1), corresponding to an operating margin of 14.5 % (15.0).

· Earnings per share of SEK 0.13 (0.26), decrease is related to a positive one time effect in 2010.

· Total cash flow of SEK -39.6 million (83.9), the cash flow in 2010 included a SEK 60 million positive one time effect.

Net Insight AB discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on February 17, 2012 at 08.30 am CET.

STEADY FINANCIAL PERFORMANCE

FOURTH QUARTER

The fourth quarter was our second best quarter from a revenue perspective so far but 8.9 % lower than the same quarter in the previous year Revenues reached 80.3 MSEK and in comparison, the currency effects were insignificant. The gross margin strengthened to 62 % (59). The operating margin increased to 20 % (17.9) as the operating earnings reached 16.1 MSEK (15.7). In summary, the financial result in the fourth quarter was slightly ahead of the same period previous year. There were several factors affecting the fourth quarter revenues. On the one hand there was a significant decline in the business in Western Europe and lower volumes than expected in Digital Terrestrial Television networks (DTT). The decline is mainly due to timing factors rather than a lasting decline. On the other hand revenues were up in the Americas and APAC. The business area Broadcast and Media Network (BMN) continues to grow and represented 94 % of our business in Q4 (82). It can be noted that there is a significant number of DTT projects ahead.

FULL YEAR 2011

Revenues 2011 reached 294.5 MSEK (287.7), a growth of 2.4 % compared to previous year. In comparable currencies the growth amounted to 7.8 %. The gross margin remained high at 61.9 % (62.7) and the operating earnings were 42.8 MSEK (43.1) producing an operating margin of 14.5 % (15).

Despite lower growth than anticipated, we have expanded geographically, won new customers and broadened our product portfolio. We now count 150 operators in over 50 countries. An important part of our growth strategy is our indirect sales which reached 56% (38) of our total revenues. We also continued to win business with telecom operators as well as cable TV operators that are very key customer groups for Net Insight going forward.

The media and broadcast market is undergoing major changes driven by the digitization of media and the migration to IP. This changes the way we produce, distribute and consume video. The production of video is changing towards IT based workflows and is real-time critical requiring media networks with high quality and low delay. The consumption of video over broadband (over-the-top) has massively increased in the last year and gradually consumers will demand live and higher quality content delivered over-the-top. We have during the year clarified our unique value proposition in an industry migrating to IP, strengthening Net Insight's position as a future player in video transport. For certain we will leverage these trends and the changes in the market place based on our position as a recognized provider ensuring high quality real-time sensitive video transport.

Stockholm, February 17, 2012

Corporate Reg. No. 556533-4397

Net Insight delivers the world's most efficient and scalable transport solution for Broadcast and IP Media, Digital Terrestrial TV, Mobile TV and IPTV/CATV networks.

Net Insight products truly deliver 100 percent Quality of Service with three times improvement in utilization of bandwidth for a converged transport infrastructure. Net Insights Nimbra(TM) platform is the industry solution for video, voice and data, reducing operational costs by 50 percent and enhancing competitiveness in delivery of existing and new media services.

More than 150 world class customers run mission critical video services over Net Insight products in over 50 countries. Net Insight is quoted on the NASDAQ OMX, Stockholm.

For more information, visit www.netinsight.net