Nokia to establish a research & development center in Hangzhou, China

Nokia Networks and the Zhejiang Provincial Government of China today signed a Memorandum of Understanding for the establishment of a new R&D center to be located in Hangzhou, the capital city of Zhejiang province in China. This is another strong demonstration of Nokia's long-term commitment to China.

The center, expected to employ up to 500 people in 3 - 4 years' time, will focus on software development, and will develop platform technologies related to Nokia's 3G mobile networks. The Hangzhou R&D center will have an important role in Nokia's global R&D network.

The new center will start operations at the beginning of 2002. The research and development activities of this center will be carried out together with a local Chinese partner company. The aim is to start cooperation with a local partner in 2003, and the partner company will employ the majority of the personnel.

Hangzhou is the rapidly developing capital city of Zhejiang province and home to Zhejiang University, the largest institution of higher learning in China. The presence of Zhejiang University, a focus on software capabilities and high-level education, as well as good transportation and communications infrastructure were pivotal in Nokia's choice of Hangzhou.

The establishment of the Hangzhou R&D center builds on Nokia´s long experience of cooperation in technology development with Chinese partners and universities. Nokia and Zhejiang University have already started cooperation. Nokia expects to also be able to recruit well-educated personnel in Hangzhou and surrounding areas.

"With this new R&D center, China will strengthen its position as part of Nokia's global R&D network. For Nokia, China is the second largest market. We are convinced, based on the excellent cooperation done so far, that this project will be a long-term success for all parties involved," said Mr. Sauli Salo, Senior Vice President, Mobile Core Networks, Nokia Networks.

"We are very pleased to welcome Nokia to open its new global R&D center in Hangzhou. As a world-leading supplier of mobile communications, Nokia has brought the most advanced communications technology to China. Zhejiang is one of the most developed provinces in China with a strong foundation of economic, educational and technology development. We have full confidence in providing the Nokia's R&D center with our best support, and expect it to enjoy a favorable investment environment in Zhejiang Province," said Mr. Lv Zushan, Standing Vice Governor of Zhejiang province.

Nokia will involve its current switching Joint Venture partner Hang Xing in the project. Nokia and Hang Xing have a long-term cooperation in the Joint Venture, Beijing Nokia Hang Xing Telecommunications Systems Ltd (BNT), which manufactures GSM switching equipment in China.

Nokia is committed to a long-term development and preferred partnership in China. With innovative technology, Nokia has continuously strengthened its market position as a leading supplier of mobile and broadband network systems and mobile phones in China. Nokia's investment in China has surpassed USD 1.7 billion. Nokia has established over twenty offices, eight joint ventures and, after this announcement, two R&D centers and over 5,500 employees in China.

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 broadband 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.

Further information:
Communications Department, Nokia Networks
Tel. + 358 7180 38195
E-mail nokia.networks@nokia.com

www.nokia.com