Enclosed in pdf file is the interim report for the first quarter 2012 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

10 May 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 first quarter of 2012, Thinfilm announced the first public application
featuring printed memory cards and continued its progress towards full-scale
commercialization of stand-alone memories by receiving the first order for a
scalable array printed memory. In March 2012, Thinfilm raised capital from both
new and existing shareholders to fund operations into 2014.

Highlights:

* Successful first public application of Thinfilm memory cards at "Hiss-Pop"
event: Exceptional participation in a live interactive adult game at
Exploratorium in San Francisco.
* Continued commercial traction by receiving first order for scalable array
memory from Japanese customer: Delivery of engineering quantities in Q2
2012.
* Received international recognition by winning both the Flexi Innovation
Award for 2012 and the IDTechEx Product Development Award, PE Europe 2012:
Strengthened industry leadership position.
* Raised capital to fund operations into 2014, from both new and existing
shareholders: The placement closed in five hours and was substantially
oversubscribed.

In March 2012, Thinfilm memory cards were used in conjunction with
Exploratorium's "Hiss-Pop" experience event, marking the first public
application featuring fully-printed rewritable memory. The successful event
demonstrated the uniqueness of Thinfilm memory by fascinating and engaging more
than 1,300 participants in an adult, adventure-style interactive game.
VentureBeat, a US technology media company attending the event, stated that the
game "wowed the crowds".
"The simplicity of storing and updating data on the card makes the technology
very appealing for these types of exhibits and events," adds Ken Eklund, "Hiss-
Pop" co-creator.

During the first quarter of 2012, Thinfilm took another step towards full
commercialization of stand-alone memories by receiving the first order for a
scalable array memory from a Japanese customer. The delivery of engineering
quantities in Q2 2012 will mark an important milestone in Thinfilm's roadmap as
the passive array memory adds several advantages to the already commercially
available 20-bit single-line memory: More compact design allowing for lower
cost, improved bit-count scalability, and reduced number of contact points
(enabling lower integration cost).
In April 2012, Thinfilm also received a new commercial order for a parts
identification prototype system that will utilize printed rewritable memory. The
prototypes will use Thinfilm Memory(TM) to identify parts contained in custom
manufactured hardware and will be delivered to the customer, an international
manufacturer of security products, in Q2 2012.
"These orders do not only demonstrate the stand-alone attractiveness of our
memory technology, but also prove customer pull and commercial market
opportunities outside the industries we have been targeted so far," says Davor
Sutija, Thinfilm CEO.

In the first quarter, Thinfilm also passed several milestones, and continued its
progress towards enabling integrated systems and smart tags for the "Internet of
Things" (IoT). In January, Thinfilm announced partnerships with PST Sensors,
Acreo, and Imprint Energy, each of which has components for system integration
that cost pennies per tag; i.e., printed temperature sensor, display and battery
for 1.5-3.0 cents each. The development work of incorporating these low-cost
components into the first integrated system prototype, a temperature sensor tag,
continued during the first quarter and is on schedule for completion in 2012.
In February and April, Thinfilm received international recognition by winning
both the Flexi Innovation Award for 2012 and the IDTechEx Product Development
Award, PE Europe 2012. The Flexi award (won jointly with PARC, a Xerox company)
was received for developing the Thinfilm Addressable Array Memory(TM), while the
IDTechEx award was received for developing the Addressable Array as a platform
for enabling integrated systems and for building out a technology partner
ecosystem. Also in April, Thinfilm CEO Davor Sutija was invited as a guest
panelist to discuss technology innovation with Michael Raynor at PARC's 10th
anniversary symposium.
"The collective recognition received from these events has strengthened
Thinfilm's leadership position in the industry, which is important for
attracting new potential technology partners, strategic partners, commercial
partners, and financial partners, as well as for continuing existing
collaborations and ongoing discussions with such parties," explains Davor
Sutija, Thinfilm CEO.

12 March 2012, Thinfilm completed a successful substantially over-subscribed
funding round which raised a total of NOK 72.5 million (including proposed
warrants which would raise gross NOK 27.5 million). This founding round,
together with the outstanding warrants from the private placement in October
2010, which would raise gross NOK 23.1 million, would fund operations of the
Company into 2014 if the proposed and outstanding warrants are exercised. "The
resolved financing situation provides the company with longer term stability to
focus on what it does best: Develop groundbreaking technology for mass
production of low-cost, low-power, ubiquitous smart tags," concludes Torgrim
Takle, Thinfilm CFO.

[HUG#1610651]

Thinfilm's Financial Report First Quarter 2012