Nokia - Company Announcement

Nokia continues to align its workforce and operations

Next phase of changes to improve efficiencies in manufacturing, Location &
Commerce, and supporting functions 

Nokia Corporation
Stock exchange release
September 29, 2011 at 10.00 (CET+1)

Espoo, Finland - Nokia today announced plans to take additional actions to
align its workforce and operations. The measures support both the execution of
the company's strategy and the savings target the company announced earlier
this year, and also target to bring efficiencies and speed to the organization. 

Earlier this year, Nokia announced changes primarily focused on aligning its
R&D operations in Smart Devices and Mobile Phones. Today, the company announced
the next phase of operational alignment, which includes plans for reductions in
manufacturing, the Location & Commerce business, and supporting functions. 

Nokia plans to adjust its manufacturing capacity and renew its manufacturing
operations to better serve its global network of customers, partners and
suppliers in the following manner: 

- Focus its feature phone manufacturing on those locations with optimal
proximity to suppliers and key markets. As a result, Nokia plans to close its
manufacturing facility in Cluj, Romania by the end of 2011, as Nokia's
high-volume Asian factories provide greater scale and proximity benefits. 

- Review the long-term role of its manufacturing operations in Salo, Finland,
Komarom, Hungary, and Reynosa, Mexico. These factories are expected to continue
to play a key role in serving European and North American smartphone customers,
but the plan is to gradually shift their focus to customer and market-specific
software and sales package customization. It is estimated this would have an
impact on the number of personnel in 2012, with no impact in 2011. Nokia will
engage in discussions with employee representatives and stakeholders in these
sites, and expects to have more visibility into the possible headcount impacts
in the first quarter of 2012. 

Nokia previously announced its plans to create a Location & Commerce business
consolidating location assets including NAVTEQ and Nokia's social location
services operations. As part of consolidating this business, Nokia has
identified potential synergies and opportunities to increase effectiveness
through automation. Location & Commerce is responsible for driving the delivery
of the world's best digital mapping content, location platform and
social-location experiences. Nokia plans to concentrate its Location & Commerce
development efforts in Berlin, Boston, Chicago and other supporting sites, and
plans to close its operations in Bonn, Germany and Malvern, US. 

Nokia is also starting consultations with employees in Sales, Marketing and
Corporate Functions, in line with Nokia's earlier announcement on April 27,
2011. "We are seeing solid progress against our strategy, and with these planned
changes we will emerge as a more dynamic, nimble and efficient challenger,"
said Stephen Elop, Nokia President and CEO. "We must take painful, yet
necessary, steps to align our workforce and operations with our path forward.""Europe is core to Nokia's future. In addition to our headquarters, we have a
strong R&D presence in Europe. We have four major R&D sites in Finland and two
major R&D sites in Germany, as well as Nokia Research Centers and other
supporting R&D sites in Europe. Nokia also retains a strong local presence in
our many sales offices throughout this region, as well as our operations in
Salo and Komarom," said Elop. 

The planned closure of the Cluj factory combined with adjustments to supply
chain operations is estimated to impact approximately 2,200 employees. The
planned changes in the Location & Commerce business are estimated to impact
approximately 1,300 employees. These personnel reductions are in addition to
the measures announced in April and are expected to take effect by the end of
2012. 

In line with the company values, Nokia will offer employees affected by the
planned reductions a comprehensive support program. Nokia remains committed to
supporting its employees and the local communities through this difficult
change. 

About Nokia
Nokia is committed to connecting people to what matters to them by combining
advanced mobile technology with personalized services. More than 1.3 billion
people connect to one another with a Nokia, from our most affordable
voice-optimized mobile phones to advanced Internet-connected smartphones sold
in virtually every market in the world. Through our services, people also enjoy
access to maps and navigation on mobile, a rapidly expanding applications
store, a growing catalog of digital music, and more. Nokia's NAVTEQ is a leader
in comprehensive digital mapping and navigation services, and Nokia Siemens
Networks is one of the leading providers of telecommunications infrastructure
hardware, software and professional services globally. 

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical
facts are forward-looking statements, including, without limitation, those
regarding: A) the expected plans and benefits of our strategic partnership with
Microsoft to combine complementary assets and expertise to form a global mobile
ecosystem and to adopt Windows Phone as our primary smartphone platform; B) the
timing and expected benefits of our new strategy, including expected
operational and financial benefits and targets as well as changes in leadership
and operational structure; C) the timing of the deliveries of our products and
services; D) our ability to innovate, develop, execute and commercialize new
technologies, products and services; E) expectations regarding market
developments and structural changes; F) expectations and targets regarding our
industry volumes, market share, prices, net sales and margins of products and
services; G) expectations and targets regarding our operational priorities and
results of operations; H) expectations and targets regarding collaboration and
partnering arrangements; I) the outcome of pending and threatened litigation;
J) expectations regarding the successful completion of acquisitions or
restructurings on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such acquisition or
restructuring; and K) statements preceded by "believe,""expect,""anticipate,""foresee,""target,""estimate,""designed,""plans,""will" or similar
expressions. These statements are based on management's best assumptions and
beliefs in light of the information currently available to it. Because they
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) our ability to succeed in creating a
competitive smartphone platform for high-quality differentiated winning
smartphones or in creating new sources of revenue through our partnership with
Microsoft; 2) the expected timing of the planned transition to Windows Phone as
our primary smartphone platform and the introduction of mobile products based
on that platform; 3) our ability to maintain the viability of our current
Symbian smartphone platform during the transition to Windows Phone as our
primary smartphone platform; 4) our ability to realize a return on our
investment in MeeGo and next generation devices, platforms and user
experiences; 5) our ability to build a competitive and profitable global
ecosystem of sufficient scale, attractiveness and value to all participants and
to bring winning smartphones to the market in a timely manner; 6) our ability
to produce mobile phones in a timely and cost efficient manner with
differentiated hardware, localized services and applications; 7) our ability to
increase our speed of innovation, product development and execution to bring
new competitive smartphones and mobile phones to the market in a timely manner;
8) our ability to retain, motivate, develop and recruit appropriately skilled
employees; 9) our ability to implement our strategies, particularly our new
mobile product strategy; 10) the intensity of competition in the various
markets where we do business and our ability to maintain or improve our market
position or respond successfully to changes in the competitive environment; 11)
our ability to maintain and leverage our traditional strengths in the mobile
product market if we are unable to retain the loyalty of our mobile operator
and distributor customers and consumers as a result of the implementation of
our new strategy or other factors; 12) our success in collaboration and
partnering arrangements with third parties, including Microsoft; 13) the
success, financial condition and performance of our suppliers, collaboration
partners and customers; 14) our ability to source sufficient quantities of
fully functional quality components, subassemblies and software on a timely
basis without interruption and on favorable terms, including the disruption of
production and/or deliveries from any of our suppliers as a result of adverse
conditions in the geographic areas where they are located; 15) our ability to
manage efficiently our manufacturing, service creation, delivery and logistics
without interruption; 16) our ability to ensure the timely delivery of
sufficient volumes of products that meet our and our customers' and consumers'
requirements and manage our inventory and timely adapt our supply to meet
changing demands for our products; 17) any actual or even alleged defects or
other quality, safety and security issues in our products; 18) any actual or
alleged loss, improper disclosure or leakage of any personal or consumer data
collected or made available to us or stored in or through our products; 19) our
ability to successfully manage costs, including our ability to achieve targeted
costs reductions and to effectively and timely execute related restructuring
measures, including personnel reductions; 20) our ability to effectively and
smoothly implement the new operational structure for our businesses; 21) the
development of the mobile and fixed communications industry and general
economic conditions globally and regionally; 22) exchange rate fluctuations,
including, in particular, fluctuations between the euro, which is our reporting
currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as
certain other currencies; 23) our ability to protect the technologies, which 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
services; 24) our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens
Networks patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property rights of these
technologies; 25) the impact of changes in government policies, trade policies,
laws or regulations and economic or political turmoil in countries where our
assets are located and we do business; 26) any disruption to information
technology systems and networks that our operations rely on; 27) unfavorable
outcome of litigations; 28) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile products and
lawsuits related to them, regardless of merit; 29) our ability to achieve
targeted costs reductions and increase profitability in Nokia Siemens Networks
and to effectively and timely execute related restructuring measures; 30) Nokia
Siemens Networks' ability to maintain or improve its market position or respond
successfully to changes in the competitive environment; 31) Nokia Siemens
Networks' liquidity and its ability to meet its working capital requirements;
32) whether Nokia Siemens Networks is able to successfully integrate the
acquired assets of Motorola Solutions' networks business, retain existing
customers of the acquired business, cross-sell Nokia Siemens Networks' products
and services to customers of the acquired business and otherwise realize the
expected synergies and benefits of the acquisition; 33) Nokia Siemens Networks'
ability to timely introduce new products, services, upgrades and technologies;
34) Nokia Siemens Networks' success in the telecommunications infrastructure
services market and Nokia Siemens Networks' ability to effectively and
profitably adapt its business and operations in a timely manner to the
increasingly diverse service needs of its customers; 35) developments under
large, multi-year contracts or in relation to major customers in the networks
infrastructure and related services business; 36) the management of our
customer financing exposure, particularly in the networks infrastructure and
related services business; 37) whether ongoing or any additional governmental
investigations into alleged violations of law by some former employees of
Siemens AG may involve and affect the carrier-related assets and employees
transferred by Siemens AG to Nokia Siemens Networks; 38) any impairment of
Nokia Siemens Networks customer relationships resulting from ongoing or any
additional governmental investigations involving the Siemens carrier-related
operations transferred to Nokia Siemens Networks; as well as the risk factors
specified on pages 12-39 of Nokia's annual report Form 20-F for the year ended
December 31, 2010 under Item 3D. "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 publicly update 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
Communications
Tel. +358 7180 34900
Email: press.services@nokia.com

www.nokia.com