SECURITIESTable ANDof EXCHANGE COMMISSION Washington, DC 20549 Contents

PursuantTable 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. Contents

•Table Operating income per Q2: MNOK (76.8), against pro forma MNOK 10.3 in Q2 2001 • Income before tax per Q2: MNOK (98.5), against pro forma MNOK 58.2 in Q2 2001 • Transmission Networks booked new orders for MNOK 670 and had an operating income of MNOK (101) • Satellite Communications increased incoming orders as a result of the BGAN contract with Inmarsat and maintains its leading market position in the Inmarsat system • The wireless broadband market is developing slowly, but Nera continues to win new contracts. Meanwhile the level of costs for the Wireless Broadband Access business area has been reduced considerably. • Nera’s balance sheets has been reduced substantially as a result of a decline in accounts receivable and inventory, while the cash flow from operations was slightly positive for the first six months of the year.Contents

TransmissionTable Networks had operating revenues of MNOK 751 for the first six months of the year, against MNOK 1 191 per Q2 last year. The operating income for the first half of the year was MNOK (101), against MNOK 136.3 Contents

AboutTable Nera: of Contents

TheTable Nera Group had operating revenues for the first six months of 2002 of MNOK 1 330. During the same period last year Nera produced a pro forma operating income (incl. NeraTel, Singapore) of MNOK 2 021. Only minor changes have been registered in the market situation during the second quarter. The company is influenced by low investment levels and surplus capacity in the transmission market. As a consequence, Nera experienced low utilisation of capacity and pressure on gross margins. The positive development within Satellite Communications continues, and NeraTel, Singapore achieved satisfactory business volumes and operating profit for the first six months of this year. The Nera Group achieved an operating result of MNOK (76.8) in the first half of 2002, compared to pro forma MNOK 10.3 for the same period of last year. Contents

TheTable market for satellite communications is stable. During the second quarter Nera has received several new orders for earth stations, among others, from China. Although the Inmarsat system meets with increasing competition from other systems, Inmarsat still upholds a leading position, especially within high-speed data transmission. In spite of considerable competitive disadvantage due to the exchange rate development, Nera Satcom still retains its leading position within the Inmarsat system. Contents

SinceTable the decline in the telecommunications market started the Nera Group has intensified its efforts toward reducing costs and increasing efficiency. At the end of the second quarter, the company management announced increased efforts with the goal of reaching a considerably lower break-even level in the course of 2003. In total, the identified initiatives were valued at MNOK 130. Included among the identified initiatives currently under implementation is a stop in all production activities in Luton, UK. Furthermore, R&D activities will be refocused, with more emphasis on customer projects and initiatives to strengthen margins. Currently under implementation are reductions in sales and administration costs. One step in this process is the closing of Nera Finans and its operations in Dublin, Ireland, and the delisting from Nasdaq. Also under implementation is a simplification of sections of the marketing Contents

NetTable financial items for the first six months amounted to MNOK (21.7), compared to pro forma MNOK 47.8 in 2001. The financial items are negatively affected by an MNOK 30 write-down of NeraTel’s ownership in TVMobile in Singapore. In addition, financial items have been charged with a loss on exchange as a result of the exchange rate developments. Nera suffered a net loss after tax of MNOK (70.9) compared to a pro forma profit of MNOK 52.7 last year. Minority interests constituted MNOK (4.6). Thus, Nera suffered a net loss after minority interests of MNOK (75.5) compared to a pro forma profit of MNOK 52.7 last year. Contents

3Table (of 4 ) Contents

OrdersTable receivedof by Business Area * Pro forma includes Nera Telecommunications, SingaporeContents

BookTable toof Bill Transmission Networks Q1 - 2000 Q2 - 2000 Q3 - 2000 Q4 - 2000 Q1 - 2001 Q2 - 2001 Q3 - 2001 Q4 - 2001 Q1 - 2002 Q2 - 2002 Orders received/Sales 0.9787 1.7837 1.2585 1.0626 0.9014 0.8364 0.6687 0.6239 0.8175 0.9678 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Orders received SalesContents

MarketTable View Weaker end user growth and debt problems for international operators and system integrators create a very challenging overall market situation Low investment level and margin pressure continues in transmission market No signs of substantial 3G investments Healthy market in the satellite communications niche Wireless broadband market continues to emergeContents

HighlightsTable - Cost Reductions S&A cost-level reduced 15% (as per 30.06) YonY R&D cost-level reduced 25% (as per 30.06) YonY Achieved through refocus on core programs and increased external financing New cost reduction programme implemented in June 130 MNOK in additional cost reductions (Margin improvements, S&A, R&D) Processes for restructuring of manufacturing and sales organisation initiatedContents

GoingTable forwardof Defend cash position Regain profitability Win the transmission market Maintain position in mobile satellite communication Improve position in wireless broadband marketContents

FinancialTable Itemsof Income statement and profitability Operating income and margins Balance sheet Working capital and Cash flow IPO in Singapore - Nera ElectronicsContents

OperatingTable profitof before special charges by Business Areas * Pro forma includes Nera Telecommunications, SingaporeContents

WBATable -of 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 East 20 33 43 58 71 51 45 19 16 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MNOKContents

StatementsTable of Cash FlowsContents

WorkingTable Capital in % of annualised sales 4Q-1995 4Q-1996 2Q-1997 4Q-1997 2Q-1998 3Q-1998 4Q-1998 1Q-1999 2Q-1999 3Q-1999 4Q-1999 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 East 19 31 34 24 29 20 20 23 20 14 15 8 14 15 10 10 20 26 16 15 15 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 %Contents

NetTable Cashof Position (Cash - interest bearing debt) 4Q - 1995 4Q - 1996 2Q - 1997 4Q - 1997 2Q - 1998 3Q - 1998 4Q - 1998 1Q - 1999 2Q - 1999 3Q - 1999 4Q - 1999 1Q - 2000 2Q - 2000 3Q - 2000 4Q - 2000 1Q - 2001 2Q - 2001 3Q - 2001 4Q - 2001 1Q - 2002 2Q - 2002 MNOKContents

FinancialTable Keyof FiguresContents

AppendixTable of Contents

SalesTable Revenueof by Business Areas * Pro forma includes Nera Telecommunications, SingaporeContents

QuarterlyTable Ordersof Received by Business AreaContents

OrdersTable Receivedof by Market * Pro forma includes Nera Telecommunications, SingaporeContents

OperatingTable margins* before R&D 1996 1997 1998 1999 2000 2001 Per 30.06 2001 Per 30.06 2002 East 0.139 0.114 0.09 0.142 0.153 0.062 0.102 0.04 MNOK 1996 1997 1998 1999 2000 2001 per quarter 2002 per quarter 3-D Column 193 204 200 216 287 92 79 99 51 78 78 (6,6%)* (7,8%)* (6,9%)* Research & Development 347 (12,0%)* * Operating income before R&D as % of sales revenue (1) Adjusted for special charges * R&D as % of sales revenue (11,3%)* (9.8%)*Contents

~~FORM~~SECURITIES ~~6-K~~AND EXCHANGE COMMISSION Washington, DC 20549

~~Report~~FORM ~~of Foreign Issuer~~6-K

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

~~For~~Pursuant Q2to Rule 13a-~~2002~~16 ~~Results~~or 15d-16 of the Securities Exchange Act of 1934

~~Nera ASA Kokstadveien 23, P.O. Box 7090 N~~ For Q3-~~5020~~2002 ~~BERGEN~~Results ~~Norway~~

~~Indicate~~Nera ~~by check mark whether the registrant files or will file annual~~ASA ~~reports~~Kokstadveien ~~under~~23, ~~cover~~P.O. ofBox ~~Form 20~~7090 N-F5020 ~~or Form 40-F.~~BERGEN Norway

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

~~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~~20-~~2(b)~~F ~~under~~X ~~the~~Form ~~Securities Exchange Act of 1934.~~ 40-F

~~Yes~~ Indicate by Nocheck 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.

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

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

~~SIGNATURES~~TABLE ~~Income~~OF ~~Statements Balance Sheets Statements of Cash Flows Presentation of Results~~CONTENTS

SIGNATURES PRESS RELEASE, October 30, 2002 Income Statements Balance Sheets Statements of Cash Flow Nera ASA: Interim report Q3 2002

SIGNATURES

~~PRESS~~ Pursuant ~~RELEASE~~to the requirements of the Securities Exchange Act of 1934, ~~August~~the 19registrant has duly caused this report to be signed on its behalf by the undersigned, ~~2002~~thereunto duly authorised.

Nera ASA By: ~~Results~~Bjørn ~~first~~Ove ~~half~~Skjeie ~~year~~(sign.) ~~2002~~ Name: Bjørn Ove Skjeie Title: President and Chief Operating Officer

~~Nera ASA (OSE~~Dated: ~~NER) had a negative operating income for the first half of 2002. The Transmission Networks market is still characterised by a low volume of investment and general overcapacity. However~~October 30, the development within Satellite Communications is positive, and Nera Tel, Singapore also shows a satisfactory business volume and a positive operating profit for the period. Nera is preparing for a continued weak market throughout 2003. The company expects an operating loss for the remainder of 2002 ~~at the same level as for the first six~~ ~~months of the year.~~

(LOGO)

Figures in MNOK	1st half 2002			1st half 2001		Q2-02			Q2-01			2001
	Nera ASA
				(pro forma)					(pro forma)
	Postal Address P.O. Box 7090, N-5020 BERGEN, Norway,
Orders received		1397			1873		765			916			2277
PRESS RELEASE, October 30, 2002	Office Address Kokstadvn. 23, BERGEN, Norway, Tel.No. +47 55 22 51 00 Fax.No. +47 55 22 52 99
Operating revenues		1330			2021		649			1021			2893
	Head Office Nera ASA, 5020 BERGEN Register of Business Enterprises NO 944 536 949 MVA
Operating income		(76.8	)		10.3		(34.3	)		(6.4	)		(432	)
Income before tax		(98.5	)		58.2		(62.8	)		18.3			(448	)
Earnings per share, NOK		(0.61	)		0.43		(0.32	)		0.29			(3.02	)

~~• The~~ Nera ~~Group’s~~ASA: ~~results~~Third ~~bear~~quarter ~~the~~2002 ~~mark of a tough market. Besides working~~results ~~extremely hard to win new contracts, we focus on making the most out of every~~ ~~penny. In that perspective, we are pleased to have upheld a steady volume of new~~ ~~orders, while constantly reducing the Group’s general level of costs, says Bjorn Ove Skjeie, CEO of Nera ASA.~~

~~• With~~Nera ~~regards~~ASA (OSE: NER) had after the first nine months operating revenues of MNOK 1,830 compared to, ~~markets~~pro forma (including NeraTel, weSingapore), ~~have~~MNOK ~~reason~~2,828 ~~for~~in ~~optimism~~the same period last year. The company’s business volume in ~~South~~the ~~East~~third ~~Asia~~quarter was somewhat lower than in previous quarters, ~~where~~in part due to seasonal fluctuations weand ~~have~~in ~~won~~part ato ~~number~~the ofproblems ~~contracts~~breaking-in new products. ~~The~~Nera ~~development~~gained a positive cash-flow within ~~Satellite~~the third quarter from the parent company in Norway as well as ~~Communications~~from isassociated ~~also~~companies ~~good,~~internationally. ~~and~~The cost cutting is progressing as planned. Nera ~~keeps~~management ~~winning~~expects ~~new~~a ~~contracts~~gradual ~~and~~improvement ~~market~~of results, so that the ~~share~~Group inwill ~~this~~achieve ~~business~~positive ~~area~~operating revenues in 2003, ~~says~~provided ~~Skjeie~~a turnover at the level of the current business volume.

~~Weak~~• ~~transmissions~~Operating income per Q3: MNOK (115,7) against pro forma MNOK 4,1 in the same period last year • Income before tax per Q3: MNOK (131,7) against pro forma MNOK (140,8) by Q2 2001 • Transmission Networks booked new orders for MNOK 1 008 in the first nine months of the year and had an operating income of MNOK (144,3) in the same period • Satellite communication continues to provide good results in a market characterised by increased competition. • The wireless broadband market is growing and Nera’s market position has had a positive development. • Nera’s balance has been improved in the period. The company had by the end of the third quarter a cash reserve of MNOK 774 and an equity ratio of 64,4 percent

The Group’s transmissions activities still show a low volume. Transmission Networks booked new orders for MNOK 670 in the first half of 2002, compared to MNOK 1 093 in 2001. A low level of investments and overcapacity leads to fierce competition over projects. The South East Asian markets are still positive, and activities in Eastern and Central Europe give grounds for optimism.


Figures in MNOK	Per Q3-02			Per Q3-01			Q3-02			Q3-01			2001
				(pro forma)						(pro forma)

Orders received		1,943			2,564			546			690			2,277









Operating revenues		1,830			2,828			500			807			2,893









Operating income		(116	)		4			(39	)		(6	)		(168	)









Income before tax		(132	)		(141	)		(33	)		(199	)		(448	)









Earnings per share, NOK		(0,86	)		(1,29	)		(0,25	)		(1,72	)		(3,02	)

(LOGO)

1• Our ~~(2)~~third quarter revenues were weak and lower than expected. The reason is in part seasonal fluctuation related to the holiday season, but can also be attributed to an up scaling of the production capacity due to the launch of Interlink earlier this year. On the bright side, our profitability improvement program is developing according to plan. We are cutting costs aggressively, and continuously implementing new initiatives, comments CEO Bjørn Ove Skjeie, and continues.

~~for~~• For the ~~same~~first ~~period~~nine ~~last~~months ~~year.~~sales-and ~~Tough~~administration ~~market~~costs ~~competition~~were ~~has~~down ~~led~~20 percent compared to ~~considerable pressure~~the oncorresponding ~~gross~~period ~~margins~~last year, ~~and~~while ~~Nera~~the ~~will~~R&D ~~persistently~~costs ~~monitor~~were ~~the~~30 percent ~~level~~lower. ofAdditional ~~costs for~~effects ~~this~~of ~~part~~efforts ofalready ~~the~~implemented ~~organisation~~are expected in ~~the~~Q4 ~~time~~and ~~ahead~~into 2003, says Skjeie.

~~Satellite~~• We ~~Communications~~are ~~strengthens~~also ~~market~~satisfied ~~lead~~with Nera being able to strengthen the balance sheet and with a positive operating cash-flow securing the company’s financial flexibility through third quarter, says Skjeie.

~~Satellite~~Transmission ~~Communications booked orders for MNOK 464 in the first half of 2002,~~networks ~~against MNOK 367 last year — an increase of 19 percent. The increase can largely~~ ~~be attributed to the BGAN contract, which Nera SatCom signed with Inmarsat in~~ April. Satellite Communication’s market is stable, and the company has received several orders for new earth stations in Q2. The Inmarsat system meets with notable and increasing competition from other systems, but still holds its leading position, especially with regards to high speed data transmission.

~~Satellite~~The ~~Communications~~market ~~had~~for ~~operating~~the ~~revenues~~company’s oftransmission ~~MNOK~~activities ~~317~~are instill ~~the~~subject ~~first~~to ~~six~~a low ~~months~~level of ~~2002~~investments in new infrastructure for cellular networks, ~~against~~but ~~MNOK~~the ~~309~~order intake ~~last~~has ~~year~~stabilised and is in the third quarter at the same level as the four preceding quarters. ~~The~~Transmission ~~operating~~networks ~~income~~had ~~was~~an order intake of MNOK ~~31.4~~1,008 during the first nine months of 2002 compared to a ~~slight~~pro ~~improvement~~forma ~~from~~MNOK ~~2001~~1,543 ~~which~~MNOK ~~yielded~~in 2001. anDespite ~~operating~~a ~~margin~~low level of ~~9.9 percent.~~investments, Nera is ~~pleased~~still ~~with~~receiving ~~the~~orders ~~improvement~~from established inclients ~~operating~~Scandinavia, ~~margin~~Eastern-Europe, ~~from~~Africa, Southeast-Asia and the ~~previous~~Caribbean’s ~~quarter~~are ~~and~~all isareas ~~content~~where ~~that~~Nera has been awarded transmission contracts in the ~~business~~last ~~area~~quarter, ~~continues~~while toWestern ~~deliver~~Europe ~~good~~and South America are still difficult ~~results~~markets.

~~Wireless~~Operating ~~Broadband~~revenues ~~Access~~within ~~receives~~Transmission networks amounted to MNOK 989 per 3 quarter against pro forma MNOK 1,728 in the same period last year. The operating income for the first ~~DVB-RCS~~nine ~~orders~~months of 2002 was MNOK (144,3) compared to MNOK 138,1 in the corresponding period last year. The negative result and a continued weak market development cause a running evaluation of the business’ level of costs.

Wireless Broadband Access has seen a positive development and booked orders for MNOK 47 in the first six months of 2002, against MNOK 9 for the same period last year. The demand for wireless broadband solutions is on the increase, especially in Norway, and since the close of the second quarter Nera Broadband Satellite ~~has~~ ~~booked its first commercial order for DVB-RCS equipment.~~communications

~~Wireless~~In ~~Broadband~~the ~~Access~~market ~~had~~for ~~operating~~Satellite ~~revenues~~communications, increased competition and the entry of ~~MNOK~~other ~~41,~~competitors anare ~~improvement~~noticed. ofIt is particularly within speech equipment ~~MNOK~~the 20competition ~~compared~~is tonoticeable. On the ~~first~~data ~~six~~area, ~~months~~the position of ~~2001~~Inmarsat has been strengthened, subsequently strengthening Nera Satellite communications. The business ~~operating~~area ~~income~~had ~~was~~an order intake of MNOK ~~(23.3)~~ 573 per third quarter, ~~against~~compared to MNOK ~~(148) for~~486 in the same period oflast ~~2001~~year.

~~Prospects~~Satellite ~~ahead~~communications had an operating income of MNOK 470 per 3 quarter, MNOK 30 higher than the same period last year. The operating result for the first nine months of this year amounted to MNOK 53,8, compared to MNOK 43,9 in the same period in 2001. Satellite communications continue to improve their margins, and have for the first nine months of 2002 an operating margin of 11,4 percent. Nera is satisfied with this development taking into account the current market situation.

~~• With~~Wireless ~~lower~~Broadband ~~market growth and considerable debt, a low investment volume will~~Access ~~characterise the telecommunication industry for several quarters ahead. The~~ ~~situation will particularly affect investments in new communication networks.~~ ~~Hence we do not expect any considerable increase in activities neither for the remainder of 2002 nor for first part of 2003, says Nera CEO Bjorn Ove Skjeie.~~

~~• However,~~The itbroadband business is ~~our~~experiencing ~~ambition~~a topositive ~~win~~development a market ~~shares~~that still inis ~~the~~of ~~time~~marginal ~~ahead.~~extent ~~Nera~~and has an ~~established~~as ~~customer~~at ~~base,~~the ~~strong~~end ~~partners,~~of ~~good~~the ~~products~~3 ~~and~~quarter aan ~~financial~~order ~~strength~~intake ~~which~~of ~~gives~~MNOK us63 ~~opportunities~~in tocomparison ~~improve~~with ~~our~~MNOK ~~market~~9 ~~position~~in ~~during~~the ~~this difficult~~same period ~~for~~last year. In the ~~transmission~~Mediterranean ~~market~~as well as in Scandinavia new wireless broadband network contracts are being entered into, ~~comments~~and ~~Skjeie~~at the same time the interest for Nera’s solution for Broadband Satellite is increasing among other markets in Asia.

~~For~~Wireless ~~Satellite~~Broadband ~~Communications,~~Access wehad ~~anticipate~~operating arevenues ~~stable~~of ~~market.~~MNOK ~~Currently~~53 ~~under~~during ~~way~~the first ~~are~~nine ~~new~~months ~~product~~of ~~modifications~~2002. ~~which~~This ~~should~~represents ~~open~~an upimprovement ~~new~~of ~~customer~~MNOK ~~segments~~22 ~~and~~compared to the ~~thus~~same ~~provide~~period ~~operations~~last ~~with~~year. aThe ~~further~~operating ~~boost~~income was MNOK (35,7) ~~says~~against ~~Skjeie~~MNOK (210,3) in the same period last year.

In2 ~~spite of the positive signs, we expect an operating loss for the remainder of~~(3) ~~2002 at the same level as for the first six months of the year, comments Nera~~ ~~CEO Bjorn Ove Skjeie and emphasises that one of the the main focuses of the Nera~~ ~~management is to uphold the Group’s strong cash position.~~

(LOGO)

~~Nera~~Looking ~~is a world-leading global supplier, developing, manufacturing and selling~~forward ~~fixed, wireless and satellite communication equipment and systems. The company~~ ~~designs, develops, manufactures and market point-to-point and~~ point-to-multipoint radio link equipment. Satellite terminals and land earth stations for mobile and fixed satellite communications. Nera is a major supplier to INMARSAT. The Company is listed on the Oslo Stock Exchange. Nera ASA has an associated company, Nera Telecommunications Ltd., listed in the Singapore Exchange Ltd. (ticker: Nera Tel).

~~For~~• The ~~further~~situation ~~information~~for the world’s telecom industry remains unchanged, ~~contact:~~and the global economy is still marked by major uncertainties. A continued strong Norwegian currency has had a negative impact on Nera’s current results as well as its long-term competitive ability, comments Neras CEO Bjørn Ove Skjeie.

~~Chief~~• Our ~~Information~~overall ~~Officer~~market-view ~~Helge~~is ~~Skaar~~that we expect a low level of mobile infrastructure investments carrying through to 2003, ~~+47~~mainly 55due 22to 58many operator’s 20debt ~~(office)~~situation. However, ~~+47~~quite 90a 14few 20projects 40are coming up in ~~(mobile)~~emerging markets where Nera traditionally has a good foothold and where our high capacity solutions are well suited. Going forward, orthis ~~hsk@nera~~might result in an improved order situation, even though the overall market situation doesn’t change, says Bjørn Ove Skjeie.no

Or• We goanticipate that when summarizing 2002, the second half will be very similar to: ~~www~~the first six months.~~nera~~ Combined with the profitability improvement programs initiated and under planning, Nera aims at breaking even during 2003.no We will still focus very much on keeping a low burn rate until profitability is achieved and we will work hard to strengthen our market position, says Bjørn Ove Skjeie.

2For ~~(2)~~further information:

~~Income~~Informasjonsdirektør ~~Statements~~Helge Skaar, +47 55 22 58 20 (work), +47 90 14 20 40 (cell phone), or hsk@nera.no

(Amounts in NOK mill.)	01.01-30.06		01.01-30.06		YEAR		2ND QUARTER		2ND QUARTER
	2002		2001		2001		2002		2001
			Proforma*						Proforma*
Orders received		1396,8		1873,2		2277,7		764,9		915,5
Sales revenue		1330,0		2021,2		2893,3		649,2		1 021,1
Operating expenses		-1235,6		-1767,3		-2626,6		-611,9		-901,2
Depreciation		-41,5		-52,6		-87,9		-20,8		-27,3
Operating income before R&D		52,9		201,3		178,8		16,5		92,5
Research and Development		-129,7		-191,0		-346,9		-50,9		-98,9
Operating income before restruct and writedowns		-76,8		10,3		-168,1		-34,3		-6,4
Restruct. and writedowns		0		0,0		-264,0		0,0		0,0
Operating income		-76,8		10,3		-432,1		-34,3		-6,4
Income from investments in associated comp		-25,8		0,2		30,2		-25,4		0,7
Writedown of project financing		0,0		0,0		-106,1		0,0		0,0
Net financial items		4,1		47,6		59,8		-3,1		24,0
Income before taxes and minority interest		-98,5		58,2		-448,3		-62,8		18,3
Taxes		27,6		-5,4		81,3		16,8		8,4
Net income (loss)		-70,9		52,7		-367,0		-46,0		26,7
Minority interest		-4,6		0,0		-3,8		6,0		9,7
Net income (loss) after minority interest		-75,5		52,7		-370,7		-40,0		36,4

or
www.nera.no

* Proforma includes Nera Telecommunications, SingaporeEnclosures

~~Balance~~3 ~~Sheets~~(3)

(Amounts in NOK mill.)	31.06.02		31.12.01
Deferred tax assets		179,7		113,5
Goodwill		21,3		23,7
Property, plant, equipment		242,3		268,1
Financial non-current assets		167,7		219,9
Non-current assets		611,0		625,2
Inventories		459,2		534,7
Trade receivables		590,9		781,6
Other receivables		278,7		375,2
Cash and cash equivalents		689,2		899,5
Current assets		2018,0		2591,0
TOTAL ASSETS		2629,0		3216,2
Shareholder’s equity		1596,0		1728,1
Long-term liabilities		78,6		101,8
Current liabilities		954,4		1386,3
TOTAL EQUITY AND LIABILITIES		2629,0		3216,2
Interest bearing current liabilities		4,3		192,3
Interest bearing long-term liabilities		6,1		8,4
Minority interest of equity		142,5		157,1

~~Statements~~Income ~~of Cash Flows~~Statements

(Amounts in NOK Mill.)	01.01-30.06		01.01-30.06		YEAR
(Amounts in NOK mill.)	01.01-30.09		01.01-30.09		Year		3rd quarter		3rd quarter
	2002		2001		2001
			2001						2001
Net income (loss)		-70,9		20,0		-367,0
	2002		Proforma*		2001		2002		Proforma*
Depreciation		41,5		44,0		87,9
Orders received		1 943,2		2 563,5		2 277,4		546,4		690,3
Writedowns on goodwill and other non-current assets		0,0		0,0		236,4
Operating revenue		1 830,4		2 828,2		2 893,3		500,5		807,0
Change in inventories, account receivables/payables and other working capital items		186,4		-263,3		-77,9
Operating expenses		-1 703,5		-2 473,4		-2 626,6		-468,0		-706,2
Other adjustments to operation activities		-143,2		-55,1		-205,9
Depreciation		-61,7		-81,5		-87,9		-20,2		-28,9
Net cash provided by (used in) operating activities		13,8		-254,3		-326,5
Operating income (loss) before R&D		65,2		273,3		178,8		12,3		71,9
Proceeds from sale of property, plant and equipment		3,6		0,1		1,0
Research and Development		-180,9		-269,2		-346,9		-51,2		-78,1
Capital expenditures		-35,1		-80,4		-129,1
Operating income (loss) before
Other investments and sales		-1,7		-13,2		135,1
restructuring and writedowns		-115,7		4,1		-168,1		-38,9		-6,2
Net cash provided by (used in) investing activities		-33,2		-93,5		7,0
Restructuring and writedowns		0,0		-188,5		-264,0		0,0		-188,5
Proceeds from issuance of shares		0,0		5,3		5,2
Operating income (loss)		-115,7		-184,4		-432,1		-38,9		-194,7
Changes, own shares		-2,8		0,0		-26,8
Income from investments in associated comp		-26,9		0,6		30,2		-1,1		0,4
Dividends paid				-27,1		-27,1
Writedown of project financing		0,0		0,0		-106,1		0,0		0,0
Net change in debt		-190,3		-49,2		-59,6
Net financial items		10,9		43,0		59,7		6,8		-4,7
Net cash provided by (used in) financing activities		-193,2		-71,0		-108,3
Income before taxes and minority interest		-131,7		-140,8		-448,3		-33,2		-199,0
Effect of changes in currency exchange rates		2,3		-9,5		7,0
Taxes		32,9		-19,0		81,3		5,3		-13,5
Net change in cash and cash equivalents		-210,3		-428,4		-420,8
Net income (loss)		-98,8		-159,8		-367,0		-27,8		-212,5
Cash and cash equivalents at the beginning of the period		899,5		1320,3		1320,3
Minority interest		-6,4		0,0		-3,7		-1,8		0,0
Cash and cash equivalents at the end of the period		689,2		891,9		899,5
Net income (loss) after minority interest		-105,2		-159,8		-370,7		-29,6		-212,5

~~Nera~~* ~~ASA:~~Proforma ~~Results~~includes ~~first~~Nera ~~half-year~~Telecommunications, ~~2002~~Singapore

~~Nera’s~~Balance ~~management foresees a continued weak market throughout 2002 and is also~~Sheets ~~planning for 2003 with the expectation of a weak market. The company expects an~~ ~~operating loss for the remainder of 2002 at the same level as for the first six~~ ~~months of the year.~~

The transmission market changed little during the second quarter. A low level of investments in infrastructure and surplus capacity led to fierce competition over projects. South East Asia is still a bright spot, and the development and activities in Eastern and Central Europe have been positive. Nera’s strong market position in South East Asia has led to new contracts in Thailand, Malaysia, the Philippines and Indonesia.


(Amounts in NOK mill.)	30.09.02		31.12.01

Deferred tax assets		195,9		113,5




Goodwill		20,1		23,7




Property, plant, equipment		233,5		268,1




Financial non-current assets		149,1		219,9

Non-current assets		598,5		625,2

Inventories		429,0		534,7




Trade receivables		503,6		781,6




Other receivables		235,1		375,2




Cash and cash equivalents		774,0		899,5

Current assets		1 941,7		2 591,0

TOTAL ASSETS		2 540,2		3 216,2

Shareholder’s equity		1 640,1		1 728,1




Long-term liabilities		61,3		101,8




Current liabilities		838,8		1 386,3

TOTAL EQUITY AND LIABILITIES		2 540,2		3 216,2






Interest bearing current liabilities		1,3		192,3




Interest bearing long-term liabilities		5,4		8,4




Minority interest of equity		246,0		157,1

~~During~~Statements ~~Q2, Nera Satcom signed a contract with Inmarsat for the development~~ of ~~a terminal~~Cash ~~for the satellite system’s new generation of satellites (Inmarsat-4),~~Flow ~~also known as the BGAN project. The terminal will weigh in at 800 grams and~~ ~~transmit data at speeds of up to 422 kb/s. The contract with Inmarsat stipulates~~ ~~an Inmarsat investment of MNOK 135 into a program through which Nera will develop, design and manufacture the new terminal, which will be ready by the end of 2004.~~

The business volume within the broadband market is still low, but the company has noted a positive development. Nera Broadband Satellite has received its first commercial new orders for DVB-RCS equipment. Nera’s broadband business area has attained a leading position in the market for wireless broadband solutions and has as of today delivered solutions to 13 different projects. There is an increasing interest for Nera’s broadband solutions in other countries.


(Amounts in NOK Mill.)	01.01-30.09		01.01-30.09		Year
	2002		2001		2001

Net income (loss)		-98,8		-201,3		-367,0




Depreciation		61,7		68,0		87,9




Writedowns on goodwill and other non-current assets		0,0		110,8		236,4




Change in inventories, account receivables/payables




and other working capital items		228,3		-343,6		-77,9




Other adjustments to operation activities		-170,4		-41,0		-205,9

Net cash provided by (used in) operating activities		20,8		-407,1		-326,5

Proceeds from sale of property, plant and equipment		5,2		0,7		1,0




Capital expenditures		-48,0		-107,4		-129,1




Other investments and sales		72,7		-11,9		135,1

Net cash provided by (used in) investing activities		29,9		-118,6		7,0

Proceeds from issuance of shares		39,9		5,3		5,2




Changes, treasury stock		-2,9		-26,8		-26,8




Dividends paid		-30,5		-27,1		-27,1




Net changes in liabilities		-194,0		-42,1		-59,6

Net cash provided by (used in) financing activities		-187,5		-90,7		-108,3

Effect of changes in currency exchange rates		11,3		-8,4		6,9

Net change in cash and cash equivalents		-125,5		-624,8		-420,8

Cash and cash equivalents at beginning of period		899,5		1 320,3		1 320,3

Cash and cash equivalents at end of period		774,0		695,5		899,5

(LOGO)

1Nera (ASA: 4Interim )report Q3 2002

~~organisation~~By the end of Q3 of 2002, ~~through~~Nera had accumulated operating revenue of MNOK 1,830, compared to pro forma (i.e. including NeraTel, Singapore) MNOK 2,828 as at 30 September 2001. The company’s business volume in Q3 was somewhat lower than in the ~~downsizing~~previous quarters, partly due to seasonal variations and ~~closing~~partly to the problems breaking-in new products. Accumulated operating income after three quarters of ~~sales~~2002 ~~offices~~was MNOK (115.7). ~~Sales~~The ~~and~~Nera Group’s net cash ~~administration~~reserves ~~costs~~at ~~are~~the end ~~down~~of bythe ~~15 percent~~quarter ~~from~~were ~~2001~~MNOK ~~for~~774. Even excluding partly owned NeraTel, Singapore, the company ~~first~~had ~~six~~a ~~months~~positive net cash flow. The cost cuts are progressing as planned. The company management expects a gradual improvement of results, so that the ~~year,~~Nera ~~and~~Group ~~R&D~~will achieve ~~costs~~positive operating ~~have~~revenue ~~been~~during ~~reduced~~the bycourse ~~25 percent~~of ~~for~~2003, provided a turnover at the ~~same~~level ~~period~~of the current business volume.

~~Since~~The ~~the~~transmission ~~end~~market ofhas Q2seen ~~2002,~~few ~~NeraTel,~~investments ~~Singapore~~in ~~has~~new ~~accomplished~~infrastructure afor ~~successful share~~mobile ~~issue~~networks. However, Nera’s ~~divestment~~order ~~and~~intake ~~listing~~for ofthe ~~its~~last ~~subsidiary~~four ~~Nera~~quarters ~~Electronics~~has atbeen ~~the Singapore~~relatively ~~Stock Exchange~~stable. AtThis ~~the~~level thus ~~time~~seems ofto ~~the listing, the subsidiary was valued~~reflect atNera’s ~~approximately~~position ~~MNOK~~in ~~475,~~the ~~and~~current ~~NeraTel~~market. ~~reduced~~The ~~its~~company ~~ownership~~receives ~~share~~ongoing tocontracts 68with ~~percent~~established customers. ~~Nera~~In ~~Electronics~~addition, ~~who~~Nera ~~specialises~~wins ina ~~low~~number ~~and~~of ~~medium~~contracts ~~volume~~with ~~electronics, will~~new ~~use~~customers ~~the~~whose projects ~~funding~~are ~~from~~an especially ~~the~~good ~~stock~~match ~~issue~~with toNera’s ~~expand~~core ~~its~~expertise. ~~sales~~In ~~activities in Europe,~~ the ~~USA~~past ~~and~~quarter, ~~Japan.~~Nera Ashas abeen awarded ~~consequence~~interesting transmission ofcontracts ~~the~~in ~~share~~Scandinavia, ~~issue~~Eastern ~~and~~Europe, ~~divestment~~Africa, ~~Group~~ ~~liquidity~~South ~~will~~East beAsia ~~strengthened~~and the Carribbean.

~~INCOME~~The ~~STATEMENTS~~satellite communication market has seen increased competition and the introduction of several new players. This reflects the increased relevance of satellite communication in an unstable world. Competition is particularly fierce within voice equipment. With regards to data, Inmarsats ~~BALANCE~~position ~~SHEETS~~is strengthened. In a Nera context, ~~LIQUIDITY~~this ~~AND~~means ~~EQUITY~~that the sale and price of the Nera World Phone has gone down, while the sale of the Nera World Communicator has shown a positive development. The land-earth station segment has upheld its position in the Inmarsat sphere.

AtThe ~~the~~wireless ~~end~~broadband ofarea ~~Q2,~~has ~~the Nera Group~~ had ~~operating~~a ~~revenues~~favorable ofdevelopment ~~MNOK~~in 1a ~~330~~still ~~compared~~limited tomarket. aNera ~~pro~~is ~~forma~~pleased ~~figure~~to note ofthe ~~MNOK~~contract ~~2 021~~ for ~~the~~a ~~same~~broadband-via-satellite ~~period~~system ~~last~~in ~~year.~~DVB-RCS ~~The~~standard ~~business~~with ~~volume~~Divona, ~~during~~a ~~the~~wholly- owned ~~second~~Monaco ~~quarter~~Telecom ~~was at the same level as for the first quarter~~subsidiary. ~~Ordinary~~ ~~operating~~The ~~costs~~EUR ~~amounted to MNOK~~ 1 million ~~277,~~contract ~~resulting~~includes in an ~~operating~~land-earth ~~result~~station ~~before~~and terminals ~~R&D~~for ~~costs~~a oftwo-way ~~MNOK~~broadband 53service ~~against~~in ~~pro~~the ~~forma~~Mediterranean ~~MNOK~~region. ~~201~~In Scandinavia, ~~for~~new ~~the~~contracts ~~same~~are ~~period~~signed ~~last~~on ~~year.~~a ~~Compared~~regular tobasis. ~~first quarter~~Meanwhile, ~~operating~~the ~~results~~Italian ~~before~~broadband ~~R&D~~market ~~was improved~~is ~~with~~opening ~~approximately~~up ~~MNOK 15~~for Nera. ~~A persistent low volume for the~~Each ~~transmission~~individual ~~activities~~contract is, ~~the~~however, ~~main~~of ~~reason~~a ~~for~~limited ~~the~~volume. ~~declining~~Nera ~~result~~has ~~compared~~entered tointo ~~the~~cooperation ~~same~~with ~~period~~Tandberg Television, ~~last~~through ~~year.~~which ~~Surplus~~Nera ~~capacity~~may ~~for~~include ~~this~~Tandberg ~~business~~equipment ~~area has resulted~~ in aNera ~~pressure on margins~~tenders.

~~For~~The ~~the~~Nera ~~first~~Group’s ~~six~~program ~~months~~for ofcost ~~2002~~reductions, ~~R&D~~with ~~costs~~a ~~amounted~~MNOK130 tocost ~~MNOK 130~~reduction, ~~down from MNOK~~is ~~191~~progressing according ~~for~~to ~~the first half of 2001~~plans. ~~R&D~~For ~~costs for Q2 were MNOK 28 lower than for~~ the first ~~quarter.~~nine ~~This~~months ~~comprises 9.8 per cent~~ of ~~revenues~~the year, ~~compared~~the tosales ~~9.5 per cent~~and ~~compared~~administration tocosts ~~pro~~are ~~forma~~20 percent lower ~~figures~~than for the same period last year. Correspondingly, R&D ~~related~~costs toare ~~the~~30 percent ~~BGAN contract has been accounted directly against sales order and is not included in R&D costs~~lower. ~~The reduction in R&D expenses is a partly a consequence~~Further ofinitiatives ~~the~~are ~~company’s~~under ~~efforts~~implementation ~~to reduce spending,~~ and ~~partly~~effects aare ~~result~~expected ~~of redirecting focus towards R&D projects with funding~~ from ~~customers~~these and ~~other external~~already ~~sources.~~implemented initiatives ~~The~~in ~~reductions~~Q4 ~~will~~and ~~not~~into ~~affect long-term product development in core businesses~~2003.

~~Ordinary~~The ~~operating~~operations ~~income~~of ~~was MNOK (76.8)~~NeraTel, ~~compared~~Singapore tooutside ~~pro~~of ~~forma~~telecommunication ~~MNOK~~are ~~10.3~~experiencing ~~for~~a ~~the~~weaker ~~first~~market development ~~six~~compared ~~months~~to ofprevious ~~last year~~years. ~~Sequentially~~Yet, the ~~operating~~stock ~~income~~exchange introduction of ~~MNOK~~the ~~(34.3)~~subsidiary ~~for~~Nera Electronics, ~~the~~including ~~second~~share ~~quarter~~issue isand ~~marginally~~sale ~~better~~of ~~than~~shares, ~~the~~was ~~result~~effected ~~for the first quarter of 2002~~successfully. The ~~transmission business area has accumulated an operating~~ ~~income~~transaction ofgave ~~MNOK (101), compared to a pro forma operating income of MNOK 136 last~~the ~~year.~~Nera ~~Satellite~~Group ~~Communications~~total ~~attained~~net anproceeds ~~operating income~~ of ~~MNOK 31~~approx.~~4, against~~ MNOK 30100.5 ~~last~~After ~~year.~~the ~~Net~~sale, ~~operating~~NeraTel ~~margin~~owns ~~for~~a ~~this business area were at~~68 10 percent, ~~which is in line with Nera’s targets. In these figures is included a provision for underabsorption~~ of ~~MNOK 20 for~~ the ~~first part of the BGAN project.~~ ~~Wireless Broadband Access accumulated an operating loss for the first half year of MNOK (23~~company.~~3),~~ ~~against pro forma MNOK (148) in 2001.~~ The ~~business~~market isfor ~~developing in~~electronics ~~line~~components ~~with expectations, but even this area~~ is ~~subject~~expected to ~~cost~~stay ~~reductions. With~~weak ~~an ordinary operating income of MNOK 49.8, NeraTel maintains its operating~~throughout ~~margin at the satisfactory level of 11~~2002.~~8 percent.~~

(LOGO)

2INCOME (STATEMENTS, 4BALANCE )SHEETS, LIQUIDIY AND EQUITY

~~The~~Per ~~Nera~~30 ~~Group’s~~September ~~total~~the ~~balance~~Nera ~~sheet~~Group athad 30accumulated ~~June~~operating ~~2002~~revenues ~~was~~of MNOK ~~2 629~~1, 830, compared to pro forma MNOK 32,828 ~~216~~for at the ~~end~~same ofperiod ~~2001~~last year. ~~There~~The ~~has~~business ~~been~~volume afor ~~substantial~~Q3 ~~reduction~~was ~~in both~~lower ~~trade~~than ~~receivables~~for ~~and~~Q2. This ~~other~~is ~~receivables,~~partly asdue ~~well~~to asseasonal ~~a considerable reduction in inventories~~variations. AsHowever, ~~disclosed in~~ the Q1problems ~~report,~~with athe ~~loan~~up scaling of ~~MNOK~~new ~~185~~products ~~from Nordiske~~have ~~Investeringsbanken~~also ~~was~~led ~~redeemed~~to ina ~~March,~~lower ~~thus~~production ~~reducing~~volume than planned for the ~~company’s~~transmission ~~cash reserve~~operations. Operating ~~The~~expenses amounted ~~equity~~to ~~ratio~~MNOK at1,703. ~~the~~The ~~end~~operating ofincome ~~the~~before ~~first~~R&D ~~half~~for ofQ3 ~~this~~is ~~year~~at ~~was~~the atlevel ~~60.7~~of Q2 ~~percent~~figures.

The company’s ~~cash~~has ~~reserve~~upheld atits ~~the~~operating ~~end~~margins ofduring ~~the~~Q3, ~~first~~due ~~six~~to ~~months~~among ~~was~~other ~~MNOK~~elements to ~~689,~~the ~~a reduction~~success of initiatives ~~MNOK 42 compared~~ to ~~the~~improve ~~end~~product ~~of Q1~~costs.

~~NEW~~At ~~ORDERS~~the ~~AND~~end ~~ORDER~~of ~~BACKLOG~~Q3, accumulated R&D costs were MNOK 180.9. R&D costs by Q3 have been reduced with MNOK 88.3 compared to last year. R&D costs equal 9.9 percent of operating revenues at 30 September 2002, compared to 9.5 percent for the same period of last year.

~~The~~Operating ~~Nera~~income ~~Group~~as ~~booked~~at ~~new~~30 ~~orders~~September ofwas MNOK 1(115.7) ~~397~~compared into ~~the first half year of 2002, against~~ pro forma MNOK 4.1 last ~~873~~year. The results for ~~the~~Q3 ~~same~~are ~~period~~at oflevel ~~2001.~~with ~~Order~~the ~~intake~~two ~~for~~previous ~~Q2 and~~quarters Q1 of 2002 ~~were on the same level~~. ~~Compared~~At ~~to last year~~MNOK (144), the ~~Transmission~~transmission ~~Networks~~ operations ~~account~~still ~~for~~generate the bulk of the ~~reduction~~operating ~~in order intake~~loss, ~~with new~~while ~~orders~~the ofloss ~~MNOK~~in ~~670~~broadband access byoperations ~~close~~is considerably oflower Q2than ~~this~~last year, ~~compared~~at to MNOK ~~1 093 in 2001~~(35. ~~However,~~7). ~~Transmission~~Satellite ~~Networks~~communications ~~level~~had ofan operating ~~incoming~~income ~~orders has been reasonably~~as ~~stable~~at ~~over~~30 ~~the~~September ~~last four quarters. As a consequence~~ of ~~the~~ MNOK ~~135~~53.8, ~~BGAN contract~~which ~~Satellite~~equals ~~Communications’~~an ~~new~~operating ~~orders~~margin ~~increased~~of ~~by 19~~11.4 percent. NeraTel, ~~The~~Singapore ~~business~~yielded ~~area~~a ~~retained~~positive ~~new~~contribution ~~orders~~to ~~of MNOK 464 during~~ the ~~first~~operating ~~half~~results of ~~this year, against~~ MNOK ~~367 last year. For Wireless Broadband Access new orders amounted to MNOK 47~~61, ~~against MNOK 9 in 2001~~6.

~~The~~Net ~~order~~financial ~~backlog~~items atafter three quarters were MNOK (16), compared to pro forma 43.6 in 2001. Income before tax were MNOK (131.7), compared to MNOK (140.8) last year. Last year’s figures include write-offs/restructuring costs of MNOK 188.5 concerning the ~~end~~phasing out of the ~~first~~Nera’s ~~six~~US broadband operations. ~~months~~After taxes, the company’s net loss was MNOK ~~931~~(98.8), ~~against~~compared ~~MNOK 888~~to ata ~~the~~pro forma ~~end~~loss of MNOK Q1(159.8) last year. Minority interests constituted MNOK ~~430~~(6.4). Net loss after minority interests is thus ~~due~~MNOK (105.2), compared to bea ~~invoiced~~pro informa ~~the~~loss ~~third~~of ~~quarter~~MNOK (159.8) last year.

~~PROSPECTS~~The Nera Group’s total balance sheet as at 30 September was MNOK 2,540. This is approx. MNOK 100 less than at the end of Q2, and a marked decline from MNOK 3,126 at the outset of 2002. Trade receivables and inventories have been reduced further in Q3, while the cash reserve has increased by MNOK 85. The transaction involving stock exchange introduction and sale of shares in Nera Electronics, Singapore has given a liquidity inflow of approx. MNOK 100. As well, disregarding the partly-owned Nera Tel, the company had a positive cash-flow in the 3 quarter of 2002. Taken into account the payment of the loan in Nordiske Investeringsbanken, the Nera Group’s net cash reserve has been strengthened so far in 2002.

~~Due~~The toowner’s ~~lower~~equity ~~market~~ratio ~~growth~~at ~~and significant debt exposure,~~ the ~~telecom~~end ~~markets face great challenges which may lead to financial reconstruction and a restructuring~~ of ~~the~~Q3 ~~market.~~was ~~It is thus likely that the investment level will be low for several quarters ahead~~64. ~~This especially applies to investments in new networks~~6 percent. ~~Considerable international economic and political turbulence further~~ ~~contributes to market insecurity.~~

InNEW ~~the~~ORDERS ~~last~~AND ~~part~~ORDER ~~of the second quarter, based on these evaluations, Nera’s~~BACKLOG ~~management disclosed to the market that it did not expect significant increases~~ ~~in market activity during the last part of 2002 and into 2003. In addition to~~ previously mentioned cost control measures, Nera ha s initiated an evaluation of other initiatives, among these the localisation of production and the global sales structure. The above mentioned redirection of R&D activities is also expected to yield long-term effects with regards to competitiveness. These efforts are, however, not expected to affect the level of costs for the current year.

ItThe ~~should~~Nera beGroup ~~underlined~~booked ~~that~~new ~~Nera’s~~orders ~~established~~of ~~customer~~MNOK ~~base~~1,943 ~~strong~~in ~~partners~~the first three quarters of 2002, ~~good~~against ~~products~~pro ~~and~~forma MNOK ~~financial~~2,563 ~~strength~~in 2001. Incoming orders for Q3 were less than in the previous quarter, primarily ~~will~~because incoming ~~enable~~orders for Satellite Communication in Q2 were affected favorably by the ~~company~~BGAN contract for MNOK 135. Satellite communication has booked new orders of MNOK 573 as at 30 September, against 486 in 2001. For the wireless broadband area, accumulated new orders amounted to ~~further~~MNOK 63, ~~improve~~against ~~its~~MNOK ~~market~~9 ~~position~~in 2001. Transmission Networks has an accumulated order intake as at 30.09.02 of MNOK 1,008, compared with MNOK 1,543 in the ~~currently~~corresponding ~~strained~~period ~~transmission~~last ~~market~~year. The order intake for the third quarter was MNOK 338, on the same level as the three preceding quarters.

~~The Satellite Communications market is expected to remain stable. Nera is~~2 ~~currently developing product adaptations which may in turn open new client~~ ~~segments and thus give this business area a further boost. For Wireless~~ ~~Broadband Access, a continued incremental growth is expected.~~

(LOGO)

~~NeraTel,~~The ~~Singapore~~order ~~anticipates~~backlog aincreased ~~development~~MNOK 26 in Q3 and amounted to MNOK 957 at the end of ~~business~~the quarter. MNOK ~~volume~~418 of this is due to be invoiced in Q4 2002 and ~~results~~MNOK 280 in ~~line~~ ~~with~~Q1 ~~the~~2003. ~~first~~The ~~six~~order platform ~~months~~for the outset of 2003 is somewhat better compared to 2002.

~~For the Nera Group, the company expects an operating loss for the remainder of~~PROSPECTS ~~2002 at the same level as for the first six months of the year.~~

~~Board~~The ofstatus ~~Directors~~ in ~~Nera~~the ~~ASA~~world’s telecom industry remains relatively unchanged. The global ~~Bergen,~~economy 16is ~~August~~still marked ~~2002~~by major uncertainties. The continued strong Norwegian currency has had a negative impact on Nera’s current results as well as its long-term competitiveness.

4Nera’s (management 4maintains )its expectations to short term market developments. The company thus expects a 2003 business volume on the same level as in 2002.

~~Presentation~~The ofshort ~~Results~~term ~~1st~~goal ~~Half~~is to re-~~year~~establish ~~2002~~profitable ~~Oslo~~operations at the current business volume. The company expects to establish operations in balance during 2003, 19providing ~~August~~that ~~2002~~the company’s business volume remains at the current level. Nera will uphold a tight focus on cash flow and working capital.

~~Bjorn~~In ~~Ove~~the ~~Skjeie~~long ~~Chief~~term, ~~Executive~~the ~~Officer~~company expects that fresh growth in mobile development and broadband solutions will bring about new growth in the transmission and broadband areas. In mobile satellite communications the market is expected to remain strong, partly due to a turbulent global situation. However, increasing competition from other satellite systems will require fresh efforts to uphold the market position.

~~The~~Board ~~Overview~~of ~~Wireless~~Directors, ~~transmission market still weak -~~ Nera prepares for a challenging market in 2002/2003 Cost reductions and margin improvements expanded - effects gets visible. Reduced Balance Sheet and maintained Cash position Satellite Communications and NeraTelASA Bergen, ~~Singapore~~29 ~~with~~October ~~satisfactory performance~~2002

~~Key Figures * Pro forma includes Nera Telecommunications, Singapore~~3

~~Orders~~Presentation ~~received~~of by3rd ~~Market~~Quarter ~~Asia~~Results ~~31.7%~~2002 (37.8%)*Oslo, ~~Percentage per region by~~ 30 ~~June~~October 2002 ~~Africa 5.3% (1.0%)* Americas 20.2% (22.7%)* Oceania 2.3% (0.7%)* UK 12.0% (4.0%)* Norway 9.1% (12.6%)* Rest of Europe 19.4% (21.1%)* * Figures in brackets are Orders received per 30.06.01~~

~~The~~Bjorn ~~BGAN-project~~Ove ~~The~~Skjeie ~~Pocket~~Chief ~~User~~Executive Terminal (PUT) Easy to carry (800 - 900g) Easy to use (Simple MMI and connections) One patch antenna Up to 422 kbps forward and 204 kbps return capacity Satellite system for land portable mobile terminals offering voice and data communications utilising the next generation of Inmarsat satellites - I4. Inmarsat will invest directly in Neras development program - USD 15 mill. Nera to design, develop and produce a Pocket User Terminal for delivery Q4 2004Officer

~~Transmission~~The ~~Markets~~Overview ~~Regional~~Still ~~Status~~challenging ~~EMEA:~~market ~~Western~~conditions ~~Europe:~~Q3 ~~Activity~~turnover ~~low~~influenced -by ~~few~~seasonal ~~signals~~factors ofand ~~immediate~~upscaling ~~upturn~~of ~~Eastern~~InterLink ~~Europe~~production &Profitability ~~Central~~improvement ~~Asia:~~program ~~Attractive~~according ~~markets~~to ~~North~~plan ~~Africa/Middle~~- ~~East: Small projects now, but regions with significant potential. Africa Sub~~break-~~Sahara:~~even ~~Region~~level ~~with~~coming ~~potential,~~down ~~but~~Positive ~~financing~~operating ancash ~~obstacle~~flow ~~to growth Asia Pacific: Fair markets in Malaysia, Philippines,Thailand~~ and ~~Indonesia,~~strong ~~otherwise~~balance ~~currently~~sheet ~~low visibility in rest of the region Americas: Activity concentrated in Caribbean and Central America. The largest markets~~ Break-even ~~Mexico~~on ~~and~~today's ~~Brazil~~revenues -to ~~are~~be ~~still~~achieved ~~weak.~~during ~~Mixed signals from the US market~~2003

~~Nera~~Key ~~Outlook~~Figures -* ~~2002~~Pro ~~Transmission~~forma ~~Networks~~includes ~~Continued~~Nera ~~low~~Telecommunications, volume Margin pressure Satellite Communications Increased volume Operating margin in line with target (10%) Wireless Broadband Access Limited but increasing business volume Still investment status NeraTel Reduced overall volume Operating profit at same level as in 2001Singapore

~~Bjorn~~Quarterly ~~Olafsson~~Orders ~~Chief~~received ~~Financial~~by ~~Officer~~Business Area

~~Income~~Book ~~Statements~~to *Bill ~~Pro~~Transmission ~~forma~~Networks ~~includes~~Q1 ~~Nera~~- ~~Telecommunications,~~2000 ~~Singapore~~Q2 - 2000 Q3 - 2000 Q4 - 2000 Q1 - 2001 Q2 - 2001 Q3 - 2001 Q4 - 2001 Q1 - 2002 Q2 - 2002 Q3 - 2002 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 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Orders received Sales

~~Margin~~Orders ~~Development~~received ~~Transmission/Satellite~~by ~~1997~~Market ~~1998~~Asia ~~1999~~31.6% ~~2000~~(38.8%)* ~~2001~~Percentage ~~1H-02~~per ~~Gross~~region ~~margin~~by ~~% 33 25~~ 30 30September 282002 21Africa ~~Oper~~5. ~~margin~~ 1% 2(1.82%)* 4Americas 21.8% (24.5%)* ~~8.9~~Oceania 72.32% ~~-14~~(1.41%)* ~~North~~UK ~~45.~~9.4% 46(3.98%)* 45Norway 4310.96% ~~Transmission 1997 1998 1999 2000 2001 1H-02 Gross margin~~ (11.4%)* 35Rest 30of 33Europe ~~40 36 35 Oper~~19. ~~margin~~ 3% 9(19.1 2%)* ~~4.9~~* ~~13.8~~Figures ~~10.8~~in ~~9.9~~brackets ~~North~~are ~~45.9~~Orders ~~46.9~~received 45per 4330.~~9 Satellite~~09.01

~~Balance~~Market ~~Sheets~~View Low investment in mobile infrastructure likely to continue into 2003 on a global basis Some emerging markets will give opportunities for Transmission Networks Satellite Communications Voice market attacked from other systems Data and marine markets is picking up Continuous interesting development in the wireless broadband markets

~~Working~~Cost ~~Capital~~Level 4Q-~~1995~~ ~~4Q-1996~~substantially ~~2Q-1997~~down 4QBreak-~~1997~~even ~~2Q-1998~~level ~~3Q-1998~~coming ~~4Q-1998~~down ~~1Q-1999~~S&A 2Qcost-~~1999~~level ~~3Q-1999~~reduced ~~4Q-1999~~20% ~~1Q-2000~~(as ~~2Q-2000~~per ~~3Q-2000~~30.09) ~~4Q-2000~~Y ~~1Q-2001~~on ~~2Q-2001~~Y ~~3Q-2001~~R&D 4Qcost-~~2001~~level ~~1Q-2002~~reduced ~~2Q-2002~~30% ~~East~~(as ~~510~~per ~~739~~30.09) ~~1028~~Y ~~881~~on ~~773~~Y ~~573~~Capex ~~713~~level ~~666~~more ~~556~~than ~~367~~halved ~~431~~Y ~~190~~on ~~309~~Y ~~322~~Actions ~~331~~implemented ~~280~~and ~~595~~additional ~~664~~planned ~~498~~Sourcing ~~412~~solutions ~~379~~in ~~West~~continuous ~~30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MNOK~~development

~~Trade~~Net ~~Receivables/~~Cash ~~Inventories/Trade~~Position ~~Payables~~(Cash ~~Days~~- interest bearing debt) 4Q - 1995 4Q - 1996 2Q - 1997 4Q - 1997 2Q - 1998 3Q - 1998 4Q - 1998 1Q - 1999 ~~2000~~2Q ~~2001~~- ~~1st~~1999 H.3Q ~~2002~~- ~~Receivables~~1999 764Q 91- ~~102~~1999 881Q 77- ~~111~~2000 972Q 80- ~~Inventories~~2000 823Q 77- 672000 514Q 40- 382000 671Q 62- ~~Payables~~2001 412Q 43- 482001 483Q 29- 452001 534Q 46- ~~Days~~2001 1Q - 2002 2Q - 2002 MNOK 3Q - 2002

Nera ~~Electronics,~~Outlook ~~Singapore~~and -Management ~~IPO~~Focus ~~Nera~~Year ~~Electronics'~~2002: ~~focus~~Unchanged iswith ~~low~~operating ~~and~~profit ~~medium~~second ~~volume~~half ~~production~~expected ofon ~~electronics~~level ~~for~~with ~~third~~first ~~party~~half ~~customers~~Year ~~Combined~~2003: ~~transaction~~Reach break-even with ~~share~~2002 ~~issue,~~turnover- ~~reduced~~level ~~ownership~~ and ~~listing~~return atto ~~Singapore~~profitability ~~Stock~~during ~~Exchange~~the ~~Net~~year ~~proceeds~~Maintain tofocus ~~Nera~~on ~~Group:~~cash ~~100~~position ~~MNOK~~and ~~Valuation:~~working ~~Appr.~~capital ~~475~~Strengthen ~~MNOK~~market ~~NeraTel's~~positions ~~ownership~~in ~~after~~core ~~IPO:~~businesses ~~Appr.~~Continue 68new %business ~~Dividend~~development ofat 25same ~~MNOK~~cost tolevel ~~Nera~~but ~~ASA~~expecting ~~declared~~gradually higher volume

~~Thank~~Bjorn ~~you~~Olafsson Chief Financial Officer

~~Key~~Financial ~~Figures~~Items ~~per~~Income 30statements ~~June~~and ~~2002~~profitability ~~30.06.02 30.06.01~~ Operating ~~margin (1) before R&D 4.0% 10.2% R&D in percent of sales revenue 9.8% 12.9% Operating margin(2) = Operating~~ income inand ~~percent~~margins ofBalance ~~sales~~sheets ~~revenue~~Working ~~-5.8%~~capital ~~-2.7%~~and ~~Earnings~~Cash ~~per share NOK -0.61 NOK 0.16~~flows

~~Invoicing~~Income ofStatements ~~Order Backlog~~* ~~3rd~~Proforma ~~Quarter~~includes ~~2002 4th Quarter 2002 Total NOK mill. Rest of 2003 and later 1st Quarter 2003 * Incl.~~ Nera Telecommunications, Singapore

~~Quarterly~~Operating ~~Sales~~income ~~Revenue~~before special charges by Business ~~Area~~Areas * Proforma includes Nera Telecommunications, Singapore

~~Sales~~Q1 ~~Revenue~~2001 bypro-forma ~~Market~~Q2 *2001 ~~Pro~~pro-forma Q3 2001 pro-forma ~~includes~~Q4 ~~Nera~~2001 ~~Telecommunications,~~pro-forma ~~Singapore~~Q1 2002 Q2 2002 Q3 2002 Orders received 511 583 450 347 309 361 338 Operating revenue 564 627 537 549 378 373 238 Oper. inc. (EBIT) 50.4 49.8 37.9 31.8 -53.5 -47.5 -43.3 Q1 2001 pro- forma Q2 2001 pro- forma Q3 2001 pro- forma Q4 2001 pro- forma Q1 2002 Q2 2002 Q3 2002 Orders received 239 129 119 142 174 289 109 Operating revenue 160 150 131 169 161 156 154 Oper. inc. (EBIT) 16.7 13.8 13.3 21.3 14.4 17 22.5 Orders/Revenue/EBIT Development Transmission/Satellite Transmission Satellite

/s/ Bjorn Ove Skjeie

Name: Bjorn Ove Skjeie Title: President and Chief Operating Officer

August 19, 2002

1997 1998 1999 2000 2001 Acc. Q3 Gross margin % 33 25 30 30 28 21 Oper. margin % 2.8 4 8.5 8.9 7.3 -14.6 North 45.9 46.9 45 43.9 1997 1998 1999 2000 2001 Acc. Q3 Gross margin % 35 30 33 40 36 35 Oper. margin % 9.1 2 4.9 13.8 10.8 11.4 North 45.9 46.9 45 43.9 Margin Development Transmission/Satellite Transmission Satellite

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 East 20 33 43 58 71 51 45 19 16 17 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MNOK

Balance Sheets

Statements of Cash Flows

Working Capital 4Q-1995 4Q-1996 2Q-1997 4Q-1997 2Q-1998 3Q-1998 4Q-1998 1Q-1999 2Q-1999 3Q-1999 4Q-1999 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 East 510 739 1028 881 773 573 713 666 556 367 431 190 309 322 331 280 595 664 498 412 379 330 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 MNOK

Working Capital in % of annualised sales 4Q-1995 4Q-1996 2Q-1997 4Q-1997 2Q-1998 3Q-1998 4Q-1998 1Q-1999 2Q-1999 3Q-1999 4Q-1999 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 East 19 31 34 24 29 20 20 23 20 14 15 8 14 15 10 10 20 26 16 15 15 13.5 West North 45.9 46.9 45 43.9 %

Trade Receivables/ Inventories/Trade Payables Days 1995 1996 1997 1998 1999 2000 2001 1st H. 2002 Acc. 3Q-2002 Receivables 76 91 102 88 77 111 97 80 74 Inventories 82 77 67 51 40 38 67 62 63 Payables 41 43 48 48 29 45 53 46 41 Days

Financial Key Figures

Thank you

Appendix

Key Figures per 30 September 2002 30.09.02 30.09.01 (proforma) Operating margin (1) before R&D 3.6% 9.7% R&D in percent of sales revenue 9.9% 9.5% Operating margin(2) = Operating income in percent of sales revenue -6.3% 0.2% Earnings per share NOK -0.86 NOK -1.29

Orders received by Business Area * Proforma includes Nera Telecommunications, Singapore

Invoicing of Order Backlog* 4th Quarter 2002 1st Quarter 2003 Total NOK mill. Rest of 2003 and later 2nd Quarter 2003 * Incl. Nera Telecommunications, Singapore

Operating Revenue by Business Areas * Proforma includes Nera Telecommunications, Singapore

Quarterly Orders received by Business Area

Quarterly Operating Revenue by Business Area

Orders Received by Market * Proforma includes Nera Telecommunications, Singapore

Operating Revenue by Market * Proforma includes Nera Telecommunications, Singapore

Operating margins* before R&D 1996 1997 1998 1999 2000 2001 Per 30.09 2001 Per 30.09 2002 East 0.139 0.114 0.09 0.142 0.153 0.062 0.097 0.036 MNOK 1996 1997 1998 1999 2000 2001 per quarter 2002 per quarter 3-D Column 193 204 200 216 287 92 79 99 51 78 51 78 (6,6%)* (7,8%)* (6,9%)* Research & Development 347 (12,0%)* * Operating income before R&D as % of sales revenue (1) Adjusted for special charges * R&D as % of sales revenue (11,3%)* (9.9%)*

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