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Nokia and China Huaxin sign definitive agreements for creation of new Nokia Shanghai Bell joint venture

Nokia Corporation
Stock Exchange Release
May 18, 2017 at 09:00 (CET +1)



Nokia and China Huaxin sign definitive agreements for creation of new Nokia
Shanghai Bell joint venture



Beijing, China - Nokia and China Huaxin Post & Telecommunication Economy
Development Center ("China Huaxin") today signed the definitive agreements of
the proposed integration of Alcatel-Lucent Shanghai Bell Co. Ltd. (ASB) and
Nokia's China business. The new joint venture will be branded as Nokia Shanghai
Bell (NSB).

As a result of today's announcement, the joint venture will become Nokia's
exclusive platform in China for the continued development of new technologies in
areas like IP routing, optical, fixed and next-generation 5G; and with the
support of Nokia, NSB will continue to look for opportunities in select overseas
markets.
ASB and Nokia's China business have been effectively operating as one entity
since January 2016 when an interim operational agreement was signed.
The closing of today's agreement, targeted to happen in July 2017, is subject to
various customary administrative, legal, regulatory and other conditions. Nokia
will own 50% plus one share of NSB, with China Huaxin owning the remainder, and
the new joint venture will have one board of directors and one management team.
NSB will represent the major part of Nokia's overall Greater China business and
fully leverage both shareholders' strengths, including innovation, global scale,
efficiency and a deep understanding of the local market; and with the aim of
increasing Nokia's market presence in China. It will further Nokia's strategic
goals of leading in high-performance networks with communication service
providers and expanding to new vertical markets in enterprise, public sector,
and cloud/internet companies.
NSB research and development (R&D) will be an integral part of Nokia's global
R&D community, with a total of around 16 000 personnel, including 10 000
researchers, working across six R&D sites in China. It will maintain and further
enhance Nokia's world-class product and research capabilities in areas that
include 5G, IoT and Cloud.

NSB's R&D scope and activities will be carried out according to Nokia's
applicable policies, global R&D processes and product roadmaps. NSB will also
support strategic initiatives of the Chinese government and engage in long-term
research projects aligned with and implementing Nokia Bell Labs' Future X
Network.

Rajeev Suri, President and CEO of Nokia Corporation, said: "Today's agreement is
historic for Nokia and for China, marking the next step of our decades-long
commitment to the country and underscoring China's leading role in developing
next-generation communication technologies. Nokia Shanghai Bell will enhance our
ability to innovate, helping us strengthen ties with communication service
providers and expand to new, fast-growing sectors in need of high-performing
networks."
Yuan Xin, General Manager of China Huaxin, said: "We are fully confident in the
new joint venture's success during the industry transformation brought by the
new technologies like 5G and IoT. The successful combination globally and in
China brings together the leading E2E network technologies and most powerful
innovation engines from both sides. We're excited to work with Nokia to
establish a future-oriented innovative technology company, with a win-win
cooperative model for the bigger success in the new era."

About China Huaxin
China Huaxin Post and Telecommunication Economy Development Center is an
industrial investment company that seeks long-term commercial growth
opportunities in the Information and Communications Technologies (ICT) sector.
China Huaxin has extensive global operations and international investment
experience. China Huaxin aspires to be a competitive global industry holding
group that creates long-term value for its stakeholders and for society as a
whole by nurturing and advancing technology innovation in the Information
Industry. www.sinohx.com

About Nokia
We create the technology to connect the world. Powered by the research and
innovation of Nokia Bell Labs, we serve communications service providers,
governments, large enterprises and consumers, with the industry's most complete,
end-to-end portfolio of products, services and licensing. From the enabling
infrastructure for 5G and the Internet of Things, to emerging applications in
virtual reality and digital health, we are shaping the future of technology to
transform the human experience. www.nokia.com

Media Inquiries

Nokia China Communications
LING Yi
T: +86 21 38436561
M: +86 18616388716
yi.a.ling@alcatel-sbell.com.cn

Nokia Corporate Communications
T: +358 10 448 4900
press.services@nokia.com


FORWARD-LOOKING STATEMENTS

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A) our ability to integrate Alcatel Lucent into our operations and achieve the
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targeted benefits from or successfully achieve the required administrative,
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including the creation of the new Nokia Shanghai Bell joint venture, as well as
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pages 67 to 85 of our 2016 annual report on Form 20-F under "Operating and
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