Nokia - Company Announcement

Nokia and Microsoft announce plans for a broad strategic partnership to build a new global ecosystem

Companies plan to combine assets and develop innovative mobile products on an
unprecedented scale 

Nokia Corporation
Stock exchange release
February 11, 2011 at 9.30 (CET +1)

London, Feb. 11, 2011 - Nokia and Microsoft today announced plans to form a
broad strategic partnership that would use their complementary strengths and
expertise to create a new global mobile ecosystem. 

Nokia and Microsoft intend to jointly create market-leading mobile products and
services designed to offer consumers, operators and developers unrivalled
choice and opportunity. As each company would focus on its core competencies,
the partnership would create the opportunity for rapid time to market
execution. Additionally, Nokia and Microsoft plan to work together to integrate
key assets and create completely new service offerings, while extending
established products and services to new markets. 

Under the proposed partnership:

- Nokia would adopt Windows Phone as its principal smartphone strategy,
innovating on top of the platform in areas such as imaging, where Nokia is a
market leader. 

- Nokia would help drive the future of Windows Phone. Nokia would contribute
its expertise on hardware design, language support, and help bring Windows
Phone to a larger range of price points, market segments and geographies. 

- Nokia and Microsoft would closely collaborate on joint marketing initiatives
and a shared development roadmap to align on the future evolution of mobile
products. 

- Bing would power Nokia's search services across Nokia devices and services,
giving customers access to Bing's next generation search capabilities.
Microsoft adCenter would provide search advertising services on Nokia's line of
devices and services. 

- Nokia Maps would be a core part of Microsoft's mapping services.   For
example, Maps would be integrated with Microsoft's Bing search engine and
adCenter advertising platform to form a unique local search and advertising
experience 

- Nokia's extensive operator billing agreements would make it easier for
consumers to purchase Nokia Windows Phone services in countries where
credit-card use is low. 

- Microsoft development tools would be used to create applications to run on
Nokia Windows Phones, allowing developers to easily leverage the ecosystem's
global reach. 

- Nokia's content and application store would be integrated with Microsoft
Marketplace for a more compelling consumer experience. "Today, developers, operators and consumers want compelling mobile products,
which include not only the device, but the software, services, applications and
customer support that make a great experience," Stephen Elop, Nokia President
and CEO, said at a joint news conference in London. "Nokia and Microsoft will
combine our strengths to deliver an ecosystem with unrivalled global reach and
scale. It's now a three-horse race.""I am excited about this partnership with Nokia," said Steven A. Ballmer,
Microsoft CEO. "Ecosystems thrive when fueled by speed, innovation and scale.
The partnership announced today provides incredible scale, vast expertise in
hardware and software innovation and a proven ability to execute."



Please visit www.nokia.com/press for press materials.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology
with personalized services that enable people to stay close to what matters to
them. Every day, more than 1.3 billion people connect to one another with a
Nokia device - from mobile phones to advanced smartphones and high-performance
mobile computers. Today, Nokia is integrating its devices with innovative
services through Ovi (www.ovi.com), including music, maps, apps, email and
more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and
navigation services, while Nokia Siemens Networks provides equipment, services
and solutions for communications networks globally. 

DISCLAIMER
Nokia and Microsoft have entered into a non-binding term sheet. The planned
partnership remains subject to negotiations and execution of the definitive
agreements by the parties and there can be no assurances that the definitive
agreements would be entered into. 

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 intention to form a 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, including the
expected plans and benefits of such partnership; 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 operation structure;
C) the timing of the deliveries of our products and services and their
combinations; D) our ability to develop, implement and commercialize new
technologies, products and services and their combinations; 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) the outcome of pending and
threatened litigation; I) 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 J) 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) whether definitive
agreements can be entered into with Microsoft for the potential partnership in
a timely manner, or at all, and on terms beneficial to us; 2) our ability to
continue to innovate and maintain the vibrancy of our Symbian-based smartphones
during the negotiation of the Microsoft partnership and thereafter; 3) the
negotiation and implementation of the Microsoft partnership will require
significant time, attention and resources of our senior management and others
within the company potentially diverting their attention from other aspects of
our business; 4) in choosing to negotiate a partnership with Microsoft and
utilize Windows Phone as our primary smartphone platform, we may forego more
competitive alternatives achieving greater acceptance and profitability in the
smartphone market; 5) the Microsoft Windows Phone smartphone platform may not
be preferred by application developers, content providers and other partners
impairing our ability to build a sufficiently competitive ecosystem for our
smartphones; 6) the Microsoft partnership may not achieve the stated goal of
producing smartphones which are differentiated from those of our competitors
and preferred by our customers and consumers in the expected timeframe, or at
all; 7) our ability to change our business model, way of working and culture
sufficiently to work effectively and efficiently with Microsoft in order to
realize the stated benefits of the partnership in a timely manner, or at all;
8) our ability to effectively and smoothly implement our new leadership and
operational structure and to realize the anticipated benefits in a timely
manner; 9) the implementation of the Microsoft partnership and the new
operational structure may cause disruption and dissatisfaction among employees
potentially reducing focus and productivity in some or all areas of our
business; as well as the risk factors specified on pages 11-32 of Nokia's
annual report Form 20-F for the year ended December 31, 2009 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