Nokia to deliver Brazil's first GSM and GPRS network to leading operator Telemar in a deal worth USD 680 million

Nokia is to supply Brazil's first GSM network and the Nokia GPRS (General Packet Radio Service) solution, the industry strongest and most efficient core GPRS system, after signing a deal worth approximately USD 680 million with the country's leading operator, Telemar. Deliveries will commence immediately and the network will be operational at the beginning of 2002, bringing subscribers state-of-the art mobile services and "always-connected" access to the Mobile Internet with GPRS.

Telemar is the biggest fixed operator in Brazil covering 96 Million people across 16 states, with headquarters in Rio de Janeiro.

With the Nokia solution, Telemar will be the first mobile operator in Brazil with a complete GSM solution and commercially capable GPRS network. The Nokia GPRS system is fully Internet Protocol (IP) compatible and can support Mobile Internet services such as data, video streaming and improved WAP services.

Under this agreement, Nokia will deliver GSM network infrastructure, including Nokia mobile switching centers, base stations and base station controllers. Nokia will also provide its UltraSite base station solution, which answers the increasing demand for higher voice and data traffic in today's mobile networks and the evolution to the Mobile Internet era. An industry-leading product,
Nokia UltraSite can support GSM, High Speed Data, GPRS, EDGE and WCDMA for 3G technologies.

In addition, Nokia will provide the Nokia Network Management System and a full range of professional services, covering project management, network planning and implementation, training services, network operating support, emergency services, software maintenance, and hardware services.

"Our main goal is to offer state-of-the-art telecommunications services, exceeding the levels of customer and market demand. We'll be building now the technical solutions to be able to offer the highest speed and always-on service, which is made possible by GPRS, to our clients next year. We know that after WAP, GPRS is another important step towards multimedia services", said Manoel Horacio Francisco da Silva, president of Telemar.

"Nokia is delighted to deliver its GSM network solution, the world's leading mobile standard, to Telemar, a new customer for us and an important player in the fast growing Latin American market," said Nils Kämpe, Vice-President, Nokia Networks, Latin America, "With this technology choice, based on open standards and open interfaces, operators benefit from global economies of scale with a network that will be cost-efficient to build and operate, add the highest value to end-users and offer opportunities for global seamless services. In addition the Nokia GPRS solution is the perfect route towards next generation mobile data services."

Nokia offers complete GSM systems, covering everything from digital mobile phones to wireless transmission, switching and mobile services platforms as well as extensive services and network management solutions for building, efficiently operating and developing Mobile networks. The number of operators to which Nokia supplies GSM technology is now 106 in 49 countries.

The Nokia GPRS solution includes the industry's most mature and scaleable carrier class core GPRS system, including applications consultancy and systems integration expertise to integrate the GPRS core network into the existing service delivery and billing environment. Nokia has delivered and implemented well over 50 GPRS core networks to leading operators in Europe, USA, Asia and China, and has clearly the largest installed base of any GPRS supplier. In addition over 23 Nokia supplied GPRS networks have been launched - more than half of the commercial GPRS launches today.

All of Nokia's GPRS system deliveries support non-proprietary interfaces to the customer care and billing systems, and can cope with multivendor environments and roaming between various operator networks, paving the way to 3G.

With more than 14 million of installed terminals, Telemar offers telephony services at 16 Brazilian states: Rio de Janeiro, Minas Gerais, Espirito Santo besides North region (except Acre State) and Northeast. Its concession area reaches 5,4 million of square kilometers, which means 64% of the country, holding around 96 million people. Besides its search of more and better services, Telemar has being investing in infrastructure and has already completed its backbone.

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 a broadly held company with listings on six major exchanges.

Further information:
Communications Department, Nokia Networks
Tel. + 358 7180 38195
Email nokia.networks@nokia.com

www.nokia.com