TNokia expects increased mobile growth and raises subscriber estimates

Friday

IRVING, Texas. Jorma Ollila, Nokia s Chairman and CEO raises the company s global mobile subscriber estimates at Nokia s annual Global Analyst Meeting today in Irving, Texas. With an estimated more than 450 million subscribers worldwide by the end of 1999 and continued strong growth, Nokia now says it expects the global number of subscribers to reach 1 billion by the end of 2002. Nokia s previous estimate had projected that number would be reached in 2003.

In his remarks, Ollila reaffirms Nokia s statement that it expects to continue to achieve strong, profitable growth in the year 2000. ``Based on the fast market growth and our strong position, we believe it will be possible to reach net sales growth of 30 to 40% in 2000, which would exceed our long term target of 25 to 35%. We continue to believe that the long term growth target is achievable in 2001 and 2002.

Expanding on Nokia s business and financial targets for 2000, Ollila anticipates that the first third generation (3G) network orders will be received in 2000. There will be continued emphasis on increasing market share in the mobile phone business, with Nokia s target being to grow faster than the market. The recently established Nokia Internet Communications will continue its acquisition strategy with the ambition to strengthen its market position.

During the presentations to financial analysts today in Texas, Nokia management outlines key strategies that support Nokia s intent to create the Mobile Information Society by combining Mobility and the Internet and stimulating the creation of new services.

In networks, Nokia is focused on shaping the markets towards Global IP Mobility, approaching development of this market through merging mobility and Internet technology. The company is well positioned to meet the challenges of the changing market, changing customer base and changes in technology. Nokia s strong market position in GSM and GPRS puts the company in good standing when moving towards third generation networks and the Mobile Information Society. Having gained a strong foothold in DSL in the United States, with orders for more than 3 million lines, Nokia is also positioned to become a market leader in broadband access.

In mobile phones Nokia sees new product segments emerging through convergence of the Internet, multimedia, applications and connectivity. By positioning the personal wireless terminal as the key foundation for new applications and services and promoting open standards, platforms and interfaces, Nokia aims to strengthen its leadership in mobile phones, benefiting from strong economies of scale.

Nokia sees itself well positioned to exploit new growth possibilities in the new arena emerging from the convergence of telecom, datacom and IT industries. Nokia Ventures Organization, targeted to foster new growth opportunities beyond the scope of current businesses is currently piloting new applications and solutions. The unit has grown to more than 1000 people focused on data communications and application components of the Global IP Mobility strategy and focusing on high-value-added applications provisioning within networks. Products include IP Routing and Security, wireless LAN infrastructure, terminals and mobility management, IP Telephony infrastructure, terminals and applications, unified messaging and WAP client/server software.

It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding1) the timing of product deliveries; 2) expectations regarding market growth and developments; 3) expectations or targets for growth and profitability; and 4) statements preceded by ``believes , ``expects , ``anticipates , ``foresees , or similar expressions, are forward-looking statements. Because such statements involve risks and uncertainties, actual results may differ materially from the results currently expected by the Company. Factors that could cause such differencies include, but are not limited to 1) general economic conditions, such as rate of economic growth in the Company s principal geographic markets or fluctuations in exchange rates; 2) industry conditions, such as the strength of product demand, the intensity of competition, pricing pressures, the acceptability of new product introductions, the introduction of new products by competitors, changes in technology or the ability of the Company to source components from third parties without interruption and at reasonable prices and the financial condition of the Company s customers; 3) operating factors, such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product deployment or inventory risks due to shifts in market demand; 4) the impact of acquisitions, including extraordinary or nonrecurring charges as well as the costs and risks associated with absorbing and managing the businesses acquired; 5) the uncertainties, costs and risks associated with Year 2000 issues; as well as 6) the risk factors specified in the Company s Form 20-F for the year ended December 31, 1998.

Nokia is paving the way to the mobile information society with its innovative products and solutions. Nokia is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks including related services. It also supplies multimedia terminals and computer displays. In 1998, net sales totaled EUR 13.3 billion (USD 15.7 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 53 000 people.

For further information, please contact: Corporate Communications (Finland) tel. +358 9 1807 485 fax +358 9 652 409 email: communications.corporate@nokia.com

Corporate Communications (USA) tel. +1 972 894 4573

www.nokia.com