Nokia and Shanghai Alliance join forces to operate mobile telecommunications manufacturing site

Today Nokia and Shanghai Alliance Investment Ltd. held a ceremony to celebrate the official formation of a Joint Venture between the two companies. It is another milestone in the company's globalization drive, as well as in Nokia's long-term commitment to be the preferred partner in China.

According to the agreement, Shanghai Alliance Investment will hold a 30% share of Nokia (Suzhou) Telecommunications Co., Ltd. and Nokia will have 70%.

Established in 1998, Nokia (Suzhou) Telecommunications Co., Ltd. is a global manufacturing facility located in Suzhou. Today, the factory has more than 400 employees and its export rate exceeds 70%. After the establishment of the Joint Venture, it will continue manufacturing cellular network products, including GSM base stations and transmission products, for the Chinese and global market.

Mr. Urpo Karjalainen, President of Nokia (China) Investment Co., Ltd. said, "Nokia (Suzhou) Telecommunications Co., Ltd. has been developing rapidly since its establishment. Shanghai Alliance has rich experience in the IT industry and a deep understanding of the China market and customer needs. We strongly believe that the cooperation between Nokia and Shanghai Alliance will secure the future success of the company. It will offer the most advanced mobile telecommunications system to operators in China and around the world, and will allow end-users to fully enjoy the unlimited benefits of the mobile information world."

"The Chinese telecommunications market has seen rapid development over the last several years," said Mr. Yang Xiong, former General Manager of Shanghai Alliance. "Looking at the future, the telecommunications industry, including mobile Internet and 3G technology, will have greater room for development. It is one of our important strategies that we actively participate in and promote the Chinese hi-tech industry. We are very happy to joint hands with Nokia, the world's leading player in the mobile telecommunications field, to push forward the development of advanced information technology in China," he continued.

Shanghai Alliance Investment Ltd. was founded on Sep. 26, 1994. It is affiliated with the Shanghai Municipal Planning Committee. The company is mainly engaged in investment and financial services in high-tech industry and important infrastructure. It also invests in enterprise reform. The company's main investment business includes Shanghai Airline Limited Company, China Netcom Corporation Limited, etc. The company is also a shareholder of the Shanghai Pudong Development Bank and the Bank of Shanghai.

Nokia is committed to a long-term development and preferred partnership in China. With innovative technology, Nokia has continuously strengthened its market position as a leading supplier of mobile and broadband network systems and mobile phones in China. China is Nokia's second largest market in the world. Nokia's investment in China has surpassed USD 1.7 billion. Nokia has established over twenty offices, eight joint ventures and one R&D center, with over 5,500 employees in China.

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 Networks, Communications Department
Tel. + 358 7180 38195
E-mail: nokia.networks@nokia.com

Ms. Chen Yuhong, Communications Manager
Nokia (China) Investment Co., Ltd.,
Tel. +86 10-65392828, Fax +86 10-65393808
www.nokia.com