Nokia - Company Announcement

Nokia Siemens Networks targets improved financial performance, return to growth

Nokia Corporation                                                               
Stock Exchange Release                                                          
November 3, 2009 at 13:00 (CET +1)                                              

Nokia Siemens Networks targets improved financial performance, return to growth 

Company sets goal to reduce annualized operating expenses and production        
overheads by EUR 500 million by end 2011 compared to end 2009                   

Espoo, Finland - Nokia Siemens Networks today announced its plan to improve     
financial performance and return to growth. The plan includes reorganizing the  
company's business units to better align with customer needs; extensive         
operating expense and production overhead reduction, including a global         
personnel review; ongoing purchasing savings; expanded partnering to ensure a   
full portfolio of world-class products and services; and potential acquisitions 
where assets would add scale to existing product areas or customer              
relationships.                                                                  "As our customers make purchasing decisions, they want a partner who engages in 
issues well beyond a traditional discussion of technology," said Rajeev Suri,   
chief executive officer of Nokia Siemens Networks.  "Business models,           
innovation, growth and transformation are now very much front and center when it
comes to the selection of a technology partner - and our planned new structure  
will position us well in this changing market."

Reorganization                                                                  

The Company's five business units are planned to be realigned into three, each  
targeting a specific customer focus area. The planned new business units, which 
are expected to come into effect on January 1, 2010, are:                       

- Business Solutions, which will focus on helping customers generate new revenue
and differentiate from the competition by providing a faster time to market for 
end-user services; enhancing billing and charging capability; automating and    
simplifying processes; addressing the challenges of convergence; and tapping    
into rich subscriber data to deliver a unique customer experience.  Jürgen      
Walter, currently head of the company's Converged Core business unit, will      
assume leadership of the Business Solutions organization.                       

- Network Systems, which will focus on providing both fixed and mobile network  
infrastructure, including the company's innovative Flexi base stations, core    
products, optical transport systems, and broadband access equipment.  Marc      
Rouanne, currently head of the company's Radio Access business unit, will assume
leadership of the Network Systems organization.                                 

- Global Services, which will focus on helping customers improve operational    
efficiency through outsourcing of their non-core activities; supporting and     
managing their networks with robust customer care offerings; and ensuring fast  
and cost-effective implementation of new networks and network upgrades. Ashish  
Chowdhary, currently head of the company's Services business, will assume       
leadership of the Global Services organization.                                 

Rouanne and Walter will join the Company's Executive Board, effective January 1,
2010.  Chowdhary is already a member of the Executive Board and will remain so  
in his new role.                                                                

Cost reductions                                                                 

Despite having fully achieved the original merger integration savings objectives
of Nokia Siemens Networks, changes in the global economy and competitive        
environment make further cost reductions necessary.  As a result, Nokia Siemens 
Networks will target a reduction of annualized operating expenses and production
overheads of EUR 500 million by the end of 2011 compared to the end of 2009.    
The company estimates that total charges associated with these reductions will  
be in the range of EUR 550 million over the course of 2010-2011.                

The operating expense and production overhead savings are expected to come from 
a wide range of areas, including real estate, information technology, site      
optimization, strategic workforce rebalancing, and overall general and          
administrative expenses.  As part of this effort, the company will also conduct 
a global personnel review which may lead to headcount reductions in the range of
about 7-9 percent of its current approximately 64,000 employees.                

Specific country impact may be higher or lower than the now estimated global 7-9
percent range and the company will only provide further details related to this 
intended action when the review and planning process has progressed and employee
representatives have been involved where required.  As the stability of customer
relationships is a key priority, disruption to key customer-facing sales        
positions as a result of this review is expected to be limited.                 

In addition to the operating expense and production overhead savings, Nokia     
Siemens Networks will target an annual reduction in product and service         
procurement costs related to cost of goods sold that is substantially larger    
than the targeted EUR 500 million in operating expenses and production overhead 
reductions.  This targeted reduction is expected to position the company to meet
ongoing customer requirements for competitive pricing.                          

Partnerships and acquisitions                                                   

Nokia Siemens Networks will seek to further strengthen its business through     
partnerships and acquisitions.  The Company already has a range of partnerships,
including with Juniper Networks in the Carrier Ethernet transport arena.        

Nokia Siemens Networks will also pursue acquisitions when assets are available  
and the associated purchase price of those assets provides the appropriate      
value.  In particular, the Company will target assets that enhance the scale of 
existing product and service business lines and that deepen relationships with  
key customers.                                                  "We recognize that we are operating in a market where customer needs are        
evolving fast," said Mika Vehvilainen, chief operating officer of Nokia Siemens 
Networks.  "We see acquisitions and expanded partnering as important tools to   
help meet these needs in the fastest, most efficient way possible."

About Nokia Siemens Networks                                                    
Nokia Siemens Networks is a leading global enabler of telecommunications        
services. With its focus on innovation and sustainability, the company provides 
a complete portfolio of mobile, fixed and converged network technology, as well 
as professional services including consultancy and systems integration,         
deployment, maintenance and managed services. It is one of the largest          
telecommunications hardware, software and professional services companies in the
world. Operating in 150 countries, its headquarters are in Espoo, Finland.      

Engage in conversation about Nokia Siemens Networks' aim to reinvent the        
connected world at http://unite.nokiasiemensnetworks.com  and talk about its    
news at http://blogs.nokiasiemensnetworks.com                                   
Find out if your country is exploiting the full potential of connectivity at    
http://connectivityscorecard.org                                                

About Nokia                                                                     
Nokia is a pioneer in mobile telecommunications and the world's leading maker of
mobile devices. Today, we are connecting people in new and different ways -     
fusing advanced mobile technology with personalized services to enable people to
stay close to what matters to them. We also provide comprehensive digital map   
information through NAVTEQ; and equipment, solutions and services for           
communications networks through Nokia Siemens Networks.                         

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,
services and solution deliveries; B) our ability to develop, implement and      
commercialize new products, services, solutions and technologies; C) our ability
to develop and grow our consumer Internet services business; D) expectations    
regarding market developments and structural changes; E) expectations regarding 
our mobile device volumes, market share, prices and margins; F) expectations and
targets for our results of operations; G) the outcome of pending and threatened 
litigation; H) expectations regarding the successful completion of contemplated 
acquisitions on a timely basis and our ability to achieve the set targets upon  
the completion of such acquisitions; and I) statements preceded by "believe,""expect,""anticipate,""foresee,""target,""estimate,""designed,""plans,""will" or similar expressions are forward-looking statements. 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) the deteriorating global economic conditions and related     
financial crisis and their impact on us, our customers and end-users of our     
products, services and solutions, our suppliers and collaborative partners; 2)  
the development of the mobile and fixed communications industry, as well as the 
growth and profitability of the new market segments that we target and our      
ability to successfully develop or acquire and market products, services and    
solutions in those segments; 3) the intensity of competition in the mobile and  
fixed communications industry and our ability to maintain or improve our market 
position or respond successfully to changes in the competitive landscape; 4)    
competitiveness of our product, services and solutions portfolio; 5) our ability
to successfully manage costs; 6) exchange rate fluctuations, including, in      
particular, fluctuations between the euro, which is our reporting currency, and 
the US dollar, the Japanese yen, the Chinese yuan and the UK pound sterling, as 
well as certain other                                                           
currencies; 7) the success, financial condition and performance of our          
suppliers, collaboration partners and customers; 8) our ability to source       
sufficient amounts of fully functional components, sub-assemblies, software and 
content without interruption and at acceptable prices; 9) the impact of changes 
in technology and our ability to develop or otherwise acquire and timely and    
successfully commercialize complex technologies as required by the market; 10)  
the occurrence of any actual or even alleged defects or other quality, safety or
security issues in our products, services and solutions; 11) the impact of      
changes in government policies, trade policies, laws or regulations or political
turmoil in countries where we do business; 12) our success in collaboration     
arrangements with others relating to development of technologies or new         
products, services and solutions; 13) our ability to manage efficiently our     
manufacturing and logistics, as well as to ensure the quality, safety, security 
and timely delivery of our products, services and solutions; 14) inventory      
management risks resulting from shifts in market demand; 15) our ability to     
protect the complex 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, services and solutions; 16) 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; 17) any disruption to   
information technology systems and networks that our operations rely on; 18)    
developments under large, multi-year contracts or in relation to major          
customers; 19) the management of our customer financing exposure;  20) our      
ability to retain, motivate, develop and recruit appropriately skilled          
employees; 21) whether, as a result of investigations into alleged violations of
law by some former employees of Siemens AG ("Siemens"), government authorities  
or others take further actions against Siemens and/or its employees that may    
involve and affect the carrier-related assets and employees transferred by      
Siemens to Nokia Siemens Networks, or there may be undetected additional        
violations that may have occurred prior to the transfer, or violations that may 
have occurred after the transfer, of such assets and employees that could result
in additional actions by government authorities; 22) any impairment of Nokia    
Siemens Networks customer relationships resulting from the ongoing government   
investigations involving the Siemens carrier-related operations transferred to  
Nokia Siemens Networks; 23) unfavorable outcome of litigations; 24) allegations 
of possible health risks from electromagnetic fields generated by base stations 
and mobile devices and lawsuits related to them, regardless of merit; as well as
the risk factors specified on pages 11-28 of Nokia's annual report on Form 20-F 
for the year ended December 31, 2008 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 Siemens Networks                                                          
Ben Roome                                                                       
Tel. +44 7827 300 203                                                           
Email: ben.roome@nsn.com                                                        

Finland                                                                         
Riitta Mård                                                                     
Phone: +358 50 514 9718                                                         
Email: riitta.mard@nsn.com                                                      

Germany                                                                         
Christina Dinne                                                                 
Tel. +49 89 636 73465                                                           
Email: christina.dinne@nsn.com                                                  

Nokia                                                                           
Communications                                                                  
Tel. +358 7180 34900                                                            
Email: press.services@nokia.com                                                 

www.nokia.com                                                                   
www.nokiasiemensnetworks.com