Nokia to merge Finnish subsidiaries

Nokia Corporation and some of its Finnish subsidiaries, including Nokia Networks Oy and Nokia Matkapuhelimet Oy, have made the decision to merge the subsidiaries into Nokia Corporation. The merger is to reorganize the Group structure and to increase the efficiency of the Group's activities.

Operations at Nokia Networks Oy make up an important part of operations within Nokia Networks, Nokia's infrastructure business group. Nokia Networks is a leading supplier of mobile and fixed access solutions, and broadband and IP network solutions. In 2000, Nokia Networks posted net sales of EUR 7 714 million, and operating profit of EUR 1 358 million, achieving high profitability.

In addition, operations at Nokia Mobile Phones Oy make up an important part of Nokia's mobile phone business group, Nokia Mobile Phones, which is the world's largest mobile phone manufacturer. Net sales for Nokia Mobile Phones in 2000 reached EUR 21 887 million, while operating profit was EUR 4 879 million and profitability was high.

The merger does not have any effect on the conducting of business by Nokia Networks or Nokia Mobile Phones, which will continue to operate as separate business groups.

The mergers are expected to legally come into effect in July 2001.

Further information
Nokia Corporate Communications
Tel. +358 7180 34459
Fax. +358 9 652 409


www.nokia.com