With a vision of 5 billion people connected and 'always on' by 2015, the planned Nokia Siemens Networks is ready to connect the world 3GSM World Congress 2007 Barcelona, Spain/Espoo, Finland/Munich, Germany - At the 3GSM World Congress 2007 in Barcelona, Nokia and Siemens will join together to present the future Nokia Siemens Networks. Nokia Siemens Networks will be a world leader in telecommunications, with strong positions in the fastest-growing market segments and regions. Driven by a desire to connect the world, the new company will have an unparalleled capability to deliver 'end-to-end' convergent solutions based on a broad portfolio of fixed and mobile infrastructure products, services and devices. The planned merger to create Nokia Siemens Networks is expected to close in the first quarter 2007. "Nokia Siemens Networks will be ideally positioned to help our customers capture opportunities that will arise as the connected community swells to around five billion by 2015. In 2015, we will live in a broadband-IP world, in which five billion people in practice will be 'always on', connected to the Internet, rich content, services and of course each other," said Simon Beresford-Wylie, designated Chief Executive Officer for the future Nokia Siemens Networks. "While Nokia Siemens Networks will have the scale to compete, we know that is just a starting point. As the world of telecommunications changes, we will also create customer value through innovation, speed and deep end-user insight." Nokia Siemens Networks will have a particular focus on the following areas: - Business transformation and helping customers find and capture opportunities in the fast-changing market. - Supporting customers in developing new revenue streams by understanding market trends and bringing new, innovative services to market. - Providing products, services and solutions that help reduce operating expenses and partnering with customers to improve operational efficiency. - Meeting the unique needs of new growth markets by working with customers to provide affordable voice and data solutions for end-users. - Utilizing the deep understanding the company will have in all areas of IP-centric convergence to identify and support new business opportunities for communication providers. - Working closely with customers on issues of environmental responsibility, including lowering power consumption and reducing the weight and size of products. - Bringing a full end-to-end expertise to help customers maximize investments and provide seamless experiences for end users. "With the creation of Nokia Siemens Networks, we have the opportunity to build the right company to meet the needs of our customers today and well into the future," said Christoph Caselitz, designated Chief Market Operations Officer for the future Nokia Siemens Networks. "We start from a strong position, with most of the top 100 operators as our customers, and a passion to help them address the challenges of a changing industry. The Nokia Siemens Networks brand that we are launching today reflects that passion." The new Nokia Siemens Networks brand, launched at 3GSM, is based on the belief that the future of the communications industry lies in understanding and uniting communities. It reflects the dynamic nature of the industry and the innovative attitude of the new company. The brand is a symbol of movement and renewal and of the future company's desire to have a spirit that is pioneering, passionate and pragmatic. "As we head to a world where we believe that five billion people will be constantly connected, we need to have a deeply rooted innovation culture at Nokia Siemens Networks - and we will," said Mika Vehviläinen, designated Chief Operating Officer for the future Nokia Siemens Networks. "Across all of our business units, we will focus both on today's needs as well as bringing the future of networks to life." Nokia Siemens Networks will have six business units: Radio Access, Service Core and Applications, Operations Support Systems, Broadband Access, IP Networking and Transport, and Services. Nokia and Siemens are presenting their key solutions and applications at the 3GSM World Congress 2007 in Barcelona in Hall 8, and in a show truck in front of Hall 8. The planned merger to create Nokia Siemens Networks is expected to close in the first quarter of 2007, subject to previously announced closing conditions. About Nokia Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. About Siemens Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has around 475,000 employees (incl. discontinued operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in over 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal year 2006 (ended September 30), Siemens had sales of ¤87.3 billion and net income of ¤3.033 billion, according to U.S. GAAP. Forward looking Statements It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations regarding our mobile device volume growth, market share, prices and margins; E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; G) expected timing, scope and effects of the merger of Nokia's and Siemens' communications service provider businesses; and H) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "estimate," "designed," "plans," "will" or similar expressions are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the extent of the growth of the mobile communications industry, as well as the growth and profitability of the new market segments within that industry which we target; 2) the availability of new products and services by network operators and other market participants; 3) our ability to identify key market trends and to respond timely and successfully to the needs of our customers; 4) the impact of changes in technology and our ability to develop or otherwise acquire complex technologies as required by the market, with full rights needed to use; 5) competitiveness of our product portfolio; 6) timely and successful commercialization of new advanced products and solutions; 7) price erosion and cost management; 8) the intensity of competition in the mobile communications industry and our ability to maintain or improve our market position and respond to changes in the competitive landscape; 9) our ability to manage efficiently our manufacturing and logistics, as well as to ensure the quality, safety, security and timely delivery of our products and solutions; 10) inventory management risks resulting from shifts in market demand; 11) our ability to source quality components without interruption and at acceptable prices; 12) our success in collaboration arrangements relating to development of technologies or new products and solutions; 13) the success, financial condition and performance of our collaboration partners, suppliers and customers; 14) any disruption to information technology systems and networks that our operations rely on; 15) our ability to protect the complex technologies that we or others develop or that we license from claims that we have infringed third parties' intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products and solution offerings; 16) general economic conditions globally and, in particular, economic or political turmoil in emerging market countries where we do business; 17) developments under large, multi-year contracts or in relation to major customers; 18) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Chinese yuan, the UK pound sterling and the Japanese yen; 19) the management of our customer financing exposure; 20) our ability to recruit, retain and develop appropriately skilled employees; 21) the impact of changes in government policies, laws or regulations; and 22) satisfaction of the conditions to the merger of Nokia's and Siemens' communications service provider businesses, including achievement of agreement between Nokia and Siemens on the results and consequences of a Siemens compliance review, and closing of transaction, and Nokia's and Siemens' ability to successfully integrate the operations and employees of their respective businesses; as well as 23) the risk factors specified on pages 12 - 22 of the company's annual report on Form 20-F for the year ended December 31, 2005 under "Item 3.D Risk Factors." Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Media Enquiries: Nokia, Networks Communications Tel. +358 7180 31451 Nokia Communications Tel. +358 7180 34900 E-mail: [email protected] www.nokia.com Siemens Networks Astrid Keibel Tel. +49 89 722 31558 E-mail: [email protected] www.siemens.com www.nokiasiemensnetworks.com/3gsm