Enclosed in pdf file is the interim report for the fourth quarter and
preliminary results 2011 for the Thin Film Electronics ASA group. See below for
the business review section of the report.

For more information contact:
Torgrim Takle, CFO: +47 95 14 07 82/tt@thinfilm.no

28 February 2012
Thin Film Electronics ASA

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Business review
In the fourth quarter, Thinfilm took another important step towards enabling
printed integrated systems and smart tags for the "Internet of Things" (IoT) by
securing exclusive access to commercial-scale supplies of organic semiconductor
inks as well as technology agreements for sensor, battery and display
components. These recent achievements have led to significant interest in the
company and its technology from various strategic and commercial parties.

Highlights:
· Established key partnerships for enabling fully printed integrated systems and
smart tags: Technology partnerships with Polyera (organic semiconductor inks),
PST Sensors (temperature sensor), Imprint Energy (battery) and Acreo (display).
· Thinfilm, PARC received 2012 FlexTech Alliance Innovation Award: Industry
recognition for Thinfilm Addressable Memory, as a platform for fully-printed
electronic systems.
· Initiated development of integrated system prototype: First temperature
sensor tag expected during 2012.

Thinfilm made significant progress during the fourth quarter of 2011 and in
early 2012, in its strategy of expanding into printed transistors and logic.
Thinfilm made three important steps towards the mass production of low-cost,
low-power, ubiquitous smart tags. In October 2011, a successful prototype of
scalable printed CMOS memory was demonstrated, showing that Thinfilm memory can
be made addressable by incorporation of printed organic logic circuits,
developed jointly with PARC, a Xerox company. This is a critical milestone
towards the creation of fully-printed smart tags, combining memory and logic
with other printed components such as sensors, batteries, displays and antennas.
In November 2011, this was followed by the announcement of a partnership with
Polyera, to produce high-mobility semiconductor inks for mass production of CMOS
memory. Most recently, key partnerships for display, sensor and battery
technology were established in January 2012, securing the remaining "building
blocks" for enabling integrated systems and smart tags.
"Integrating our printed memory with logic and other printed components will not
only enable smart tags for the Internet of Things (IoT), but it will also allow
Thinfilm to capture a larger share of the future value chain," says Davor
Sutija, Thinfilm CEO.
In February 2012, Thinfilm and PARC received international recognition for their
work on printed addressable memory by winning the prestigious FlexTech Alliance
Innovation Award.
Thinfilm has initiated the work of building the first integrated system
prototype; a temperature sensor tag that will be developed jointly with
technology partners during 2012.
"We estimate the addressable market for low-cost temperature tags to be in the
range of USD 1-2 billion," says Torgrim Takle, Thinfilm CFO, and explains
Thinfilm's strategy for the future product development and market entry. "When
analyzing the existing temperature sensor market, we found that relatively
simple color changing labels, which are only containing qualitative information,
are being sold in massive volumes at 10-40 cents. We believe this is a perfect
entry point to demonstrate Thinfilm's unique cost-functionality position in an
existing market".
Thinfilm's technology partners have all been chosen based on their ability to
meet the required cost and functionality specifications for the respective
sensor, battery and display components. "We are excited to work with these
companies, and are confident that they have the right technologies for
commercializing a low-cost temperature sensor tag within the next years,"
concludes Takle.

In November 2011, Thinfilm made the 20-bit memory technology more broadly
accessible by offering Arduino-powered development kits through Inventables -
"the innovator's hardware online store."
"Numerous development kits have been sold to major strategic accounts also
outside the toys and games industry, underpinning the need for making Thinfilm's
market-leading memory technology available for innovation across a wide range of
industries," says Davor Sutija, Thinfilm CEO. Thinfilm continues to see strong
interest for its stand-alone memory products in the toys and games industry, and
is working focused towards full commercialization of 20-bit memory.
"We have recently received very positive feedback from our prioritized toys and
games partners, including statements that Thinfilm offers the world's cheapest
20-bit rewritable memory. We believe that is a strong indication of future
success in this market," says Sutija.

[HUG#1589844]

Thinfilm's Financial Report Fourth Quarter and Preliminary Results for 2011