Nokia Signs USD200-million GSM Expansion Contract with Smart Communications, Inc. in the Philippines

Nokia has signed an agreement valued at USD 200 million with Smart Communications, Inc. for the expansion of its nationwide GSM network in the Philippines. Nokia has been the sole supplier for Smart's digital mobile network since Smart launched its GSM service in April 1999.

Under the contract, Nokia will supply and install several mobile switching centers, home location registers, base station controllers, advanced Ultrasite base stations, short messaging systems and a new network management system.

The Nokia Ultrasite base station solution answers the increasing demand for higher voice and data traffic in today's mobile networks and evolution to the Mobile Internet era. An industry-leading product, Nokia Ultrasite can support GSM and higher level mobile communication technologies.

This expansion program will enable Smart's network to handle a subscriber base in excess of six million subscribers by end of 2001, and up to 10 million subscribers by 2002.

Upon the conclusion of this expansion phase, Smart expects to realize substantial savings on a capacity-per-subscriber basis on account of the advanced, high-capacity network facilities being deployed by Nokia.

"This expansion agreement with Nokia is vital to our efforts to further raise service quality levels and increase our subscriber base by substantially increasing the subscriber capacity of our network," said Napoleon L. Nazareno, President and CEO of Smart.

Nazareno added, "This expansion program confirms our commitment to provide our subscribers wider coverage, higher network capacity, improved service quality and greater ease in sending text messages."

"Nokia Networks is pleased to continue our partnership with Smart Communications. We've witnessed Smart's enthusiasm in introducing innovative value-added services," said Markku Nieminen, Account General Manager for Smart Communications, Inc. Nokia Networks.

"The new agreed systems solution will meet Smart's marketing requirements and pave the path for increasingly sophisticated wireless services. In addition, Smart will also be able to enjoy the most economical infrastructure roadmap to an all-IP network," he added.

A subsidiary of PLDT, the Philippines' dominant telecommunications carrier, Smart is the country's largest and fastest growing cellular operator with over four million subscribers using its GSM network. Smart launched in April 2001 the country's first GPRS network. It also introduced late last year Smart Money, the award-winning electronic wallet linked to a cell phone service, and also Smart zed, the mobile portal for personalized services.

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

Nokia SEAP Communications
Tel: +65 723 2439/ +65 723 2329

www. nokia.com

Smart Communications, Inc.
Ramon R. Isberto
Head, Public Affairs
Tel. +632 5113101/ +632 5113106
Fax. +632 5113100
Email. rrisberto@smart.com.ph

www.smart.com.ph