Nokia - Company Announcement

Preliminary view of the impact of the Japan earthquake on Nokia's Devices & Services operations

Nokia Corporation
Stock Exchange Release
March 21, 2011 at 15.00 (CET +1)

Espoo, Finland - Following the devastating earthquake and tsunami in Japan,
Nokia continues to evaluate the impact of this tragic event on its global
operations. Although a complete picture is not available, Nokia expects some
disruption to the ability of its Devices & Services unit to supply a number of
products due to the currently anticipated industry-wide shortage of relevant
components and raw materials sourced from Japan. However, Nokia does not expect
any material impact on its Q1 2011 results due to this event. 

“First and foremost, our thoughts are with those affected by the earthquake in
Japan. We are working hard to support our employees, their families, as well as
disaster relief efforts through the Japanese Red Cross,” says Niklas Savander,
Executive Vice President, Markets, Nokia. “We are in constant dialogue with our
suppliers and with their extended supply chain in the region. Nokia's supply
chain management system is designed to mitigate operational disruptions by
using alternative sources for components and production processes. In an effort
to minimize the impact, Nokia will continue working with suppliers inside and
outside of Japan.” 

Nokia will continue to monitor the situation and will provide more detailed
information during its next quarterly results announcement on April 21, 2011 at
the latest. 

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 Ovi (www.ovi.com), people also
enjoy access to maps and navigation on mobile, a rapidly expanding applications
store, a growing catalog of digital music, free email 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 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 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) whether definitive agreements can be
entered into with Microsoft for the proposed partnership in a timely manner, or
at all, and on terms beneficial to us; 2) our ability to succeed in creating a
competitive smartphone platform for high-quality differentiated winning
smartphones or in creating new sources of revenue through the proposed
partnership with Microsoft; 3) 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; 4) our ability to maintain the viability of
our current Symbian smartphone platform during the transition to Windows Phone
as our primary smartphone platform; 5) our ability to realize a return on our
investment in MeeGo and next generation devices, platforms and user
experiences; 6) 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; 7) our ability
to produce mobile phones in a timely and cost efficient manner with
differentiated hardware, localized services and applications; 8) 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;
9) our ability to retain, motivate, develop and recruit appropriately skilled
employees; 10) our ability to implement our strategies, particularly our new
mobile product strategy; 11) 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; 12)
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; 13) our success in collaboration and
partnering arrangements with third parties, including Microsoft; 14) the
success, financial condition and performance of our suppliers, collaboration
partners and customers; 15) 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 services; 16) our ability to source sufficient
amounts of fully functional quality components, subassemblies and software on a
timely basis without interruption and on favorable terms; 17) our ability to
manage our inventory and timely adapt our supply to meet changing demands for
our products; 18) our ability to successfully manage costs; 19) our ability to
effectively and smoothly implement the new operational structure for our
devices and services business effective April 1, 2011; 20) the development of
the mobile and fixed communications industry and general economic conditions
globally and regionally; 21) 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; 22) 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; 23) 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;
24) 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; 25) any disruption to information technology
systems and networks that our operations rely on; 26) unfavorable outcome of
litigations; 27) allegations of possible health risks from electromagnetic
fields generated by base stations and mobile products and lawsuits related to
them, regardless of merit; 28) our ability to achieve targeted costs reductions
and increase profitability in Nokia Siemens Networks and to effectively and
timely execute related restructuring measures; 29) Nokia Siemens Networks'
ability to maintain or improve its market position or respond successfully to
changes in the competitive environment; 30) Nokia Siemens Networks' liquidity
and its ability to meet its working capital requirements; 31) whether Nokia
Siemens Networks' acquisition of the majority of Motorola's wireless network
infrastructure assets will be completed in a timely manner, or at all, and, if
completed, whether Nokia Siemens Networks is able to successfully integrate the
acquired business, cross-sell its existing products and services to customers
of the acquired business and realize the expected synergies and benefits of the
planned acquisition; 32) Nokia Siemens Networks' ability to timely introduce
new products, services, upgrades and technologies; 33) 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; 34) developments under large, multi-year contracts or in relation to
major customers in the networks infrastructure and related services business;
35) the management of our customer financing exposure, particularly in the
networks infrastructure and related services business; 36) 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; 37)
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