Nokia and 2Scoot begin trials of new technology applications to enable m-commerce transactions

LAS VEGAS (Jan. 5, 2001) – Nokia (NYSE: NOK) and 2Scoot have teamed to begin technology trials enabling customers to use their Nokia phones for mobile cashless payments.

Using new Nokia 5100 Series SmartCovers(TM) with Nokia 5100 Series mobile phones, the initiative will offer users additional convenience and functionality as their communication devices become trusted payment devices through integration of a Radio Frequency Identification (RFID) chip into the Nokia changeable Xpress-on(TM) phone cover. The new SmartCover(TM) can easily be snapped on a Nokia model 5100 Series phone in the same way consumers now change the color covers of their phones.

The trials, done in conjunction with two national chains of quick-service restaurants in Raleigh, N.C., will ultimately provide a new level of convenience and speed to the quickly emerging mobile commerce market.

RFID is a short-range bi-directional RF transmission system that operates at 134.2 kHz or 13.56 MHz. RFID applications include transportation (i.e. toll boothes), asset management (i.e airport baggage tracking, parcel delivery), access control (i.e. employee badges for coporate campuses), user validation (i.e. electronic ticketing, automotive anti-theft systems).

Combining a Nokia SmartCover with any Nokia model 5100 Series phone and 2Scoot's network, the fast cashless payment works with customer's existing credit card making it possible to make purchases using a Nokia model 5100 Series mobile phone. When a customer is ready to pay for goods and services they can simply present their phone to the 2Scoot scanner at the point of sale and payment is made conveniently. For example, a consumer can drop by a fast-food restaurant, place an order, drive to the pick-up window and present her phone to the scanner and have paid for her meal quickly and conveniently. 2Scoot's technology links to a customer's existing credit card, automatically authorizing and clearing payment at sub-second speed at the point of sale while taking measures to guard the consumer's privacy.

"Nokia is excited to be in the forefront of emerging m-commerce era with our products," said Paul Chellgren, vice president, business development and product management at Nokia. "In this fast growing m-business, Nokia’s collaboration with 2Scoot is an important initiative and yet another example of Nokia’s ongoing commitment to create a positive impact on society that extends beyond the advanced technology products and services the company creates."

“Enabling Nokia phones with 2Scoot further simplifies consumers’ lives while opening up many powerful new ways for retailers to get the best from both 2Scoot and wireless networks,” said Joe Ely, 2Scoot’s vice president of technology. “National chain retailers can use this offering to dramatically enhance the customer experience while maintaining the high levels of store throughput, security and consumer privacy protection that 2Scoot is known for."

Nokia Smartcovers(TM) are expected to be available during the first half of 2001 following successful technology trials. Customers will be able to use a RFID mobile payment application in establishments that will be rolling out the technology.

About Nokia
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.

About 2Scoot
2Scoot helps consumers simplify and more easily manage the existing relationships they have with retailers and credit card companies. In addition to providing secure and instantaneous ePayment, 2Scoot connects and enables seamless eBusiness and customer relationship management (CRM) transactions between the retailers website, call center and physical store through its smart network while carefully guarding the consumer’s privacy. For more information, visit the 2Scoot website at www.2Scoot.com.

Further information:
Ms. Megan Matthews, Director, Media Relations
Nokia Inc. (Americas)
Tel: +1 972 894 4267 Email: megan.matthews@nokia.com

www.nokia.com

Kathy Yanas, Corporate Communications
2Scoot
Tel: +1 845 338 0270
kyanas@2scoot.com