Nokia Extends Revenue Growth Target of 25-35% Through 2003

Company Identifies Major Future Revenue Sources and Significant Cost Savings

HELSINKI, Finland. Nokia today extended the company s revenue growth target of 25-35% from 2002 to include 2003, with continued high profitability. Nokia expects first-half 2001 revenue growth to be in the upper range of 25-35%.

Speaking at Nokia s annual global analyst meeting, Jorma Ollila, Nokia s Chairman and CEO expressed confidence in the company s ability to take full advantage of the opportunities offered through the ongoing evolution in communications.

``In the mobile world, the best is yet to come, Ollila remarked. ``The opportunities in the future are enormous as we enter an unprecedented time when mobility, Internet, digitized media and other content can be combined and become available to almost anyone, anytime and anywhere.

As the number of users in networks increases, and new applications and services are provided, new growth drivers emerge. As the global market leader, Nokia is set to benefit from new functionality such as messaging, imaging, other digital services and applications, by providing the required technology to consumers as well as operators and other service providers. Nokia is also expanding ``Club Nokia , a value-added platform for Nokia handset users to further leverage the Nokia brand, increase customer loyalty and offer new phone related services.

Nokia s top management also stated that the company is well positioned to become the world s leading mobile e-business company. The company has established a cost saving target of over EUR 1 billion per annum by 2003, which is planned to be achieved as Nokia transforms itself into an effective e-business company, with substantially all revenues generated via e-mode.

In networks, management reiterated its belief that future markets will be driven by end users and their service needs rather than by technologies. Consumers will need access to content and services regardless of time and place. This will require significant expansion of high capacity networks, and the market will be driven by content, connection and consumption. The company estimates that its target network markets will grow at about 30% annually over the next three years, reaching approximately EUR 90 billion in 2003.

Nokia has already gained a strong position in mobile networks, and management confirmed the company s objective to continue to be a leading player in third generation networks, targeting an approximate 35% share of the WCDMA markets. The position of WCDMA as the primary standard for the third generation was reaffirmed last week when AT&T Wireless Services (AWS) announced its technology choice for its nationwide network in the United States. Nokia will be a major supplier of new network technology to AWS. The deal represented by the Letter of Intent with AWS is valued at more than USD 1 billion and is for four years, making it the largest ever infrastructure supply agreement for Nokia.

Nokia s mobile phone growth has continued to exceed market growth. The company believes it now has a market share in excess of 30%, and is close to having achieved twice the market share of the number two player. Nokia aims to continue strengthening its leadership in mobile phones, benefiting from strong economies of scale.

Nokia also accelerated its estimate for future subscriber growth, stating that the 1 billion milestone for global subscribers may now be reached during the first half of 2002 rather than by end of 2002. Nokia also stated that it believes there will be more web-connected handsets than PC s in the world as early as 2002, versus its earlier projection of 2003. The company expects the market of Internet-enabled handsets to reach about 60 million in 2000, of which WAP-enabled handsets would represent approximately 40 million. For 2001, Nokia estimates that web-enabled handset unit volumes will increase to around 200 million with WAP handsets representing some 180 million of the total.

Nokia expects to increasingly benefit from the growing replacement market, as the proportions between first-time buyers and those replacing their existing mobile phone are being reversed. The company said 40-50 percent of this year s buyers will be users upgrading their existing phones, and that this figure will increase to 70-80 percent in subsequent years. Nokia also continued to stress that consumer criteria for upgrading their mobile phones are extremely varied. There will be an estimated 700 million phone owners worldwide at the end of 2000, and most users select new phones based on appearance or lifestyle fit rather than technology alone.

Nokia announced that it is executing its strategy to become a leader in the CDMA handset business. The company is now shipping its new tri-mode Nokia 5185i (CDMA1900/800/AMPS) phone in large volumes and, in 2001, is planning to bring exciting new models to the market - including Korea. Nokia also announced that a new mobile phone model specifically for the trend-setting Asia Pacific markets would be launched before the end of this year.

In addition, Nokia today unveiled the Nokia Connectivity Pack - its first Bluetooth solution - for wireless connectivity between mobile phones and personal computers. This Bluetooth wireless technology pack is designed for the Nokia 6210 model and should be available in markets in Europe and Asia in the first quarter of 2001.

Nokia also today announced financial estimates for Nokia Internet Communications, part of Nokia Ventures Organization, which is targeted to foster new growth opportunities beyond the current business scope. Nokia said that the markets for network security and Virtual Private Network solutions are growing fast and that revenues for Nokia Internet Communications are expected to exceed EUR 500 million in 2001. Targeted annual revenue growth is at least 50%, and Nokia Internet Communications is expected to reach the breakeven point during 2002.

New accelerated earnings release dates for 2001 will be as follows: first quarter results will be published on April 20, second quarter results on July 19 and third quarter results on October 19. Annual 2000 results will be announced as previously scheduled on January 30, 2001.

It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding 1) the timing of product deliveries; 2) the Company s ability to develop new products and technologies; 3) expectations regarding market growth and developments; 4) expectations for growth and profitability; and 5) 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 differences include, but are not limited to 1) general economic conditions, such as the rate of economic growth in the Company s principal geographic markets or fluctuations in exchange rates, including the impact of the weakening Euro; 2) industry conditions, such as the strength of product demand, the intensity of competition, pricing pressures, the acceptability of new product introductions such as Internet-ready phones, the introduction of new products by competitors, the impact of changes in technology, including the Company s success in the emerging 3G market, the ability of the Company to source components from third parties without interruption and at reasonable prices, demand for vendor financing and the Company s ability and willingness to provide such financing, and the success and financial condition of the Company s strategic partners and customers; 3) operating factors, such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development or inventory risks due to shifts in market demand; as well as 4) the risk factors specified on pages 21 to 23 of the Company s Form 20-F for the year ended December 31, 1999.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

Contact: Nokia, Corporate Communications (Finland) Tel: +358 9 1807 485 Fax: +358 9 652 409 email: communications.corporate@nokia.com www.nokia.com