OPERA SOFTWARE ANNOUNCES THIRD QUARTER RESULTS

Record revenue and profits

Oslo, Norway – October 24, 2012 – Opera Software (OSEBX: OPERA) today reported financial results for the third quarter, which ended September 30, 2012.

3Q 2012 financial highlights include:

• § Revenues of MUSD 56.4, up 40% (up 43% on a constant currency basis) versus 3Q11
• § EBIT of MUSD 13.7, up 24% versus 3Q11
• § Adjusted EBITDA* of MUSD 17.0, up 25% versus 3Q11
• § Operating Cash Flow of MUSD 5.1 versus MUSD 6.8 in 3Q11
• § Free Cash Flow of MUSD 4.3 versus MUSD 2.7 in 3Q11

Revenues

Revenue was MUSD 56.4 in 3Q12 compared to MUSD 40.1 in 3Q11, an increase of 40%.

Profit and cash flow

EBIT was MUSD 13.7 in 3Q12 compared to MUSD 11.0 in 3Q11. EBIT, excluding stock option costs, was MUSD 14.6 in 3Q12 versus MUSD 11.9 in 3Q11. EBITDA was MUSD 16.2 in 3Q12 compared with MUSD 12.7 in 3Q11. EBITDA, excluding stock options costs, was MUSD 17.0 compared with MUSD 13.6 in 3Q11.

The Company’s net cash flow from operating activities was MUSD 5.1 in 3Q12 compared to MUSD 6.8 in 3Q11. 

Operational Highlights

• § Operators

Revenues of MUSD 10.4 in 3Q12, down 12% versus 3Q11

Operator Opera Mini license/data revenue of MUSD 9.8 in 3Q12 up 20% versus 3Q11

Operator- and co-branded Opera Mini users reached 41.7 million by the end of 3Q12, up 112% versus the end of 3Q11

Announced agreements with Etisalat and Telcel, which, combined, have more than 200 million mobile subscribers

• § Mobile Consumers

Revenues of MUSD 8.6 in 3Q12, up 414% versus 3Q11

Total Opera mobile browser users reached 207 million at the end of 3Q12, up 35% versus the end of 3Q11

Launched Opera Mini 7.5 with Smart Page for Android phones

Android users reached 32.6 million at the end of 3Q12, up over 300% versus the end of 3Q11

• § Desktop Consumers

Revenues of MUSD 18.5 in 3Q12, up 39% versus 3Q11

Desktop users reached 55 million by the end of 3Q12, up 2% versus the end of 3Q11

Announced a two year strategic partnership with Google

Announced technology license agreement with Yandex

• § Device OEMs

Revenues of MUSD 4.2 in 3Q12, down 33% versus 3Q11

Announced agreements with Hisense and Vestel

Sony initiated rollout of the Opera TV Store in Mexico and Brazil

• § Mobile Publishers & Advertisers

Revenues of MUSD 14.1 in 3Q12, up 456% versus 3Q11

Total mobile advertising impressions grew 112% to 120 billion in 3Q12 compared to 3Q11

Outlook

Opera remains positive about the Company’s overall growth prospects, which is expected to be driven primarily by its mobile browser and mobile advertising businesses going forward.

Within its mobile browser business, Opera continues to drive a compelling value proposition for operators, helping such customers as Vodafone and Telkomsel increase data and service revenue streams and profitability. 

Moreover, Opera continues to deliver a very compelling value proposition to its rapidly burgeoning mobile consumer base, providing a fast and data saving, and thereby cheaper, browser experience. Opera’s strategy is to capitalize on its more than 200 million mobile browser user base by building Opera owned and operated properties and monetizing these properties via mobile advertising, mobile search and mobile applications.

Within Opera’s Mobile Publisher & Advertiser business – non Opera owned and operated properties, Opera expects to generate meaningfully more revenue from this business in 2012 compared to 2011, as Opera ramps up revenue directly from advertisers and ad agencies via its mobile advertising network subsidiaries, Mobile Theory and 4th Screen Advertising, and capitalizes on AdMarvel’s strong position with premium USA publishers.

Opera’s key operational priorities in 2012 include continuing to (i) sign up additional leading operators and grow active users of Opera’s existing and new products and services with existing operator customers; (ii) grow revenues and users of Opera’s mobile consumer products, particularly on the Android smartphone platform, and expand usage and monetization of Opera’s owned and operated properties; (iii) increase revenue from mobile publishers and advertisers (non-Opera owned and operated properties) by expanding Opera’s demand side advertising reach and capabilities; (iv) increase Opera’s position with top mobile phone OEMs and chipset manufacturers globally to drive greater distribution of Opera's mobile products; (v) grow Opera’s desktop user base, particularly in Russia/CIS; (vi) build on the momentum Opera has with major ConnectedTV manufacturers; and (vii) increase Opera's overall profitability and margins.

Please find the third quarter report (3Q12.pdf), third quarter press release (3Q12_Press_release.pdf) and third quarter presentation (3Q12_Presentation.pdf) attached.

Webcast: http://www.opera.com/company/investors/

Erik Harrell, CFO/CSO

Tel: +47 2369 2400

Petter Lade, Investor Relations

Tel: +47 2369 2400

About Opera Software

Opera Software ASA has redefined Web browsing for PCs, mobile phones and other networked devices. Opera’s cross-platform Web browser technology is renowned for its performance, standards compliance and small size, while giving users a faster, safer and more dynamic online experience. Opera Software is headquartered in Oslo, Norway, with offices around the world. The company is listed on the Oslo Stock Exchange under the ticker symbol OPERA. Learn more about Opera at http://www.opera.com/.

This Press Release contains forward-looking statements. These statements include, among other things,
statements regarding future operations and business strategies and future financial condition and prospects.
These forward-looking statements are subject to certain risks and uncertainties that could cause our actual
results to differ materially from those reflected in the forward-looking statements. Factors that could cause
or contribute to such differences are covered in the Opera Software FY 2011 Annual Report under the heading "Risk Factors." We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties,
readers are cautioned not to place undue reliance on such forward-looking statements.

*“Adjusted EBITDA” refers to EBITDA excluding stock option costs