MOUNTAIN VIEW, CA (July 25, 2001) - Nokia (NYSE: NOK) today announced the definitive agreement to acquire Amber Networks in a stock-for-stock merger at a net price of USD $421 million, payable partly in newly issued Nokia shares and partly in Nokia stock options, for all the outstanding securities of Amber Networks. This acquisition is subject to standard closing conditions.
Amber Networks, headquartered in Fremont, CA, is a privately-held networking infrastructure company widely known as the developer of the first fault-tolerant routing platform. Founded in 1998 and currently employing 223 people, Amber Networks will integrate with the Network Platforms business area of Nokia Networks.
"Our target is to shape future mobile network architectures, and this acquisition is a logical step in our strategy. Nokia is acquiring Amber Networks for its ability to develop fault-tolerant edge routers," said Dr. J.T. Bergqvist, Senior Vice President of Nokia Networks. "Building on its strong market share established in the 3rd Generation mobile networks, Nokia seeks to extend its leadership into future Intelligent Edge technologies and in the All-IP service integration for carrier grade high-reliability routing."
As the share of data traffic increases in mobile networks, operators will gradually move towards IP-based network solutions. IP-based networks provide operators the opportunity to control traffic at the edge of their network. The network edge then increases in importance, as much of the intelligence and value of the network will reside in it. This acquisition further strengthens Nokia's commitment to become the world leader in mobile network infrastructure by enhancing its technology position at the Intelligent Edge of future data-oriented mobile networks.
"Nokia is developing a new carrier grade routing platform for the Intelligent Edge under the name of FlexiGateway, " said Ari Virtanen, Vice President of Network Platforms, Nokia. " By combining our existing mobile IP-routing capabilities with those of Amber Networks, this establishes an industry leading team of engineers and creates the first fault-tolerant routing platform in our market."
"Amber Networks' premiere products and technology, exceptional engineering talent and expertise in high availability multi-service routing will enhance Nokia's already strong leadership in mobile networks, " said Sam Mathan, President and CEO of Amber Networks. "It's exciting to now be part of a company that is shaping the future of the mobile world."
About Nokia
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.
A press and analyst call will be held:
Wednesday, July 25, 2001
3:30 p.m. PST, 6:30 p.m. EST
Domestic dial-in number: 1 888 565 9740
International dial-in number: + 1 312 470 0032
Password: Nokia
Host: Megan Matthews, Director of Corporate Communications, Nokia Americas
Please be prepared to offer your full name and press affiliation
A replay of the audio conference will be available until Wednesday, August 1, 2001 at 11:59 p.m. PST. Domestic replay is available at 1 800 518 0083. International dial-in is available at +1 402 220 9088.
This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "foresees", or similar expressions, or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in Nokia's filings with the SEC.
For further information, please contact:
Riitta Mård
Communications Department, Nokia Networks
+ 358 (0) 7180 38195
nokia.networks@nokia.com
Denise Crew
Nokia Inc., Americas
+1 650 625 2519
denise.crew@nokia.com
www.nokia.com