Nokia plans to further increase its competitiveness by streamlining its operations in Salo, Finland

In today's economic and market situation, Nokia's target is to sustain continuous strong financial performance and to increase its market leadership. As a means to ensure and further develop its competitiveness, Nokia plans to streamline its mobile phone operations in Salo, Finland. In this process Nokia plans to re-organize two manufacturing units, Salo Operations and Special Products, and part of its accessory unit, all based in Salo.

Therefore, Nokia is starting employment negotiations with labor representatives regarding approximately 260 full-time employees in Salo. The planned changes are expected to be completed by the end of the first half of 2002.

"As the world's leading mobile phone manufacturer, we are continuously developing and implementing ways to increase our competitiveness and to ensure strong financial performance. Our target in the mobile phone business is to continue leveraging our leading position and to further increase our global market share," said Anssi Vanjoki, Executive Vice President, Nokia Mobile Phones, Europe & Africa.

"With the planned re-organizations now to be negotiated, we aim to further increase our efficiency and productivity in Salo and hence ensure the unit´s competitiveness also in the future. We view this kind of proactive move to strengthen our cost leadership as a necessary ongoing process in today´s highly competitive industry environment."

Salo is one of Nokia's 9 manufacturing sites globally. Nokia presently employs around 5,200 people in Salo.

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 broadband 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 Mobile Phones
Tapio Hedman, Vice President, Communications
Tel. +358 7180 45750

www.nokia.com