Enclosed is the interim report for the first half of 2012 and the condensed
consolidated financial statements as at 30 June 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

16 August 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
During the second quarter of 2012, Thinfilm made several breakthroughs towards
commercializing printed memory and integrated systems. The company secured its
first substantial commercial agreement and extended an important technology
partnership to develop fully printed sensor tags. Thinfilm also successfully
delivered system prototypes and engineering samples, including deliveries to a
customer outside the toys and games industry.

Highlights:
* Secured significant strategic agreements: Entered into commercial agreement
with Bemis Company Inc. ("Bemis"), a Fortune 500 flexible packaging
manufacturer, to deliver a customizable sensor platform for Bemis' existing
product lines. Extended technology partnership with PARC, a Xerox Company, for
the development of printed temperature sensor tags.
* Successfully delivered system prototypes and engineering samples: Unlocked a
new market by making first system prototype deliveries to a customer outside the
toys and games industry. Delivered custom engineering samples of the Passive
Array Memory to a leading toy company.
* Extended IPR position: Received favorable review on a patent for printable
protection for memory devices and other printed components.
* Strengthened internal capabilities to accelerate roadmap: Hired additional
technical staff and took first steps towards establishing an in-house printing
facility.

In July 2012, Thinfilm announced a strategic partnership with Bemis, a leader in
flexible packaging and pressure sensitive materials, to commercialize Thinfilm
Sensor Tags within the Bemis Intelligent Packaging Platform. The sensor platform
will be based on Thinfilm's ongoing development work on electronic tags to
collect sensor data and store information for later retrieval. The design allows
the tags to be customized to meet the individual requirements of Bemis'
customers. "The agreement marks a substantial commercial milestone for the
printed electronics industry. Flexible packaging in North America alone is
estimated to be a USD 18 billion market. Bemis is the innovation leader and
largest player in this market and has stated that printed electronics could
become a part of every package they manufacture," says Jennifer Ernst, Vice
President, North America.

In June 2012, Thinfilm and PARC, a Xerox company, extended their technology
development partnership to develop key logic blocks for low-cost time-
temperature sensors. The project extends Thinfilm's award-winning Addressable
Memory(TM), demonstrated in October 2011, to support the integration of printed
sensors and batteries.

During the second quarter of 2012, Thinfilm unlocked a new market for stand-
alone memories by delivering system prototypes and engineering samples to a
Forbes 2000 company in the security solutions industry. Following the successful
delivery, Thinfilm has continued discussions with this customer on design
protocols for integration of printed memory in their product line. Thinfilm also
made first deliveries of its Passive Array Memory(TM) to a leading toy company.

In June 2012, Thinfilm received positive review of its patent application for
printable protection layers. The novel invention, consisting of stress and
scratch resistant films, improves the robustness and extends the lifetime of
printed electronic devices. "We expect the patent protection to be broad, and
the technique to be applicable to both current and future Thinfilm products.
This patent extends our technology base and is an example of our ongoing
innovation within printed electronic systems," concludes Christer Karlsson,
Thinfilm Chief Technology Officer.

During the second quarter of 2012, Thinfilm also strengthened its internal
capabilities to accelerate development of engineering samples and prototypes of
printed integrated systems. Thinfilm began upgrading its cleanroom facilities to
support high-definition printing, including order of pilot scale gravure
printing equipment. The in-house manufacturing line provides tooling for process
and product prototype development, and the capacity to handle small-scale
commercial orders. In addition, Thinfilm continued to grow its development team
in Linköping, Sweden, by recruiting senior technical staff internationally.

[HUG#1634425]

Thinfilm's Financial Report First Half 2012