Nokia and Polkomtel S.A. sign Euros 260 million expansion contract for the Plus GSM network in Poland

Nokia and Polkomtel S.A., the leading GSM operator in Poland, have extended their long-term frame agreement for the supply of GSM equipment, in a deal worth approximately Euros 260 million.

Nokia will continue to supply network infrastructure equipment to Polkomtel for the Plus GSM network, including the Nokia UltraSite and Nokia InSite base station solutions. Polkomtel has already taken delivery of Nokia Artuse Messaging Platform (WAP and Messaging modules, Nokia Artuse USSD Center, and Nokia Artuse Picture Messaging Application), following agreements with Nokia last year. In addition, a range of services will be supplied, covering system integration, implementation and technical support.

"The equipment supplied by Nokia is of the highest quality. Consequently, we are proud to provide our customers with the high value services available directly from their mobile phones. These services are paving the way towards mobile Internet services that will bring multimedia capabilities to our mobile phone users." says Mr. Wladyslaw Bartoszewicz, President of and Director General, Polkomtel S.A. "This agreement underlines our confidence in Nokia, who remain as the sole supplier for the Plus GSM network."

"This contract is a continuation of the good co-operation that began between Nokia and Polkomtel in 1996," says Wojciech Pytel, Customer Operations Area General Manager, Nokia Networks Poland. "Nokia's comprehensive solutions based on open standards and platforms, enables the creation of feature-rich value-added services addressing both the consumer and business segments requirements. This further expansion will maintain the high level of service quality for Plus GSM subscribers, as well as providing the operator with our expertise in customer service and support."

Polkomtel S.A. is the operator of Plus GSM digital mobile network, whose shareholders are: Polski Koncern Naftowy ORLEN S.A., KGHM Polska Miedz S.A., Vodafone Americas Asia Inc. (US) and TeleDanmark A/S (Denmark), holding 19.61% shares each and Polskie Sieci Elektroenergetyczne with 16.05 % share, Weglokoks S.A. (4%), Tel-Energo S.A. (1.01%), TelBank (0.5%).

Plus GSM is the leader among Polish mobile operators. Revenues and profits for 1999 - PLN 2.7 billion and PLN 129 million, respectively gave it the first place in the ranking of the Institutes of Economic Sciences of the Polish Academy of Science, in the category: Infrastructure Company. Businessman Magazine monthly recognized Polkomtel S.A. as the Company with the biggest market value in Poland among private enterprises. Plus GSM network provides services to over 2.2 million of users and is available to 97% of the Poland's population inhabiting over 94% of the territory of the country. Polkomtel was the first operator in Poland to introduce pre-paid services and the first one to offer WAP services to its subscribers.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is one of the most broadly held companies in the world with listings on six major exchanges.

Further information:

Nokia Networks
Communications Department
Tel. + 358 9 5113 8193
Fax + 358 9 5112 8199
Email nokia.networks@nokia.com

www.nokia.com

Polkomtel S.A.
Press Office
Tel. +48 22 607 1911
Fax +48 22 607 1812

www.plusgsm.pl

Notes to Editors

The Nokia UltraSite base station solution, which answers the increasing demand for higher voice and data traffic in today's mobile networks. An industry-leading product, Nokia UltraSite can support GSM, High Speed Data, GPRS, EDGE and WCDMA for 3G technologies.