DGAP-UK-Regulatory: Nokia and Microsoft sign -2-

DJ DGAP-UK-Regulatory: Nokia and Microsoft sign definitive agreement ahead of schedule

Nokia / Miscellaneous 21.04.2011 12:10 Dissemination of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

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Key contributions to new global mobile ecosystem agreed and significant 
progress made on engineering of new productsNokia Corporation 
Stock exchange release 
April 21, 2011 at 13.10 (CET +1) 
 
Espoo, Finland and Redmond, US - Nokia (NYSE: NOK) and Microsoft (NASDAQ: MSFT) 
today announced the signing of a definitive agreement on a partnership that 
will result in a new global mobile ecosystem, utilizing the very complementary 
assets of both companies. Completed ahead of schedule, the definitive agreement 
is consistent with the joint announcement made on February 11. 
 
In addition to agreeing to the terms of their partnership, including joint 
contributions to the development of the new ecosystem, Nokia and Microsoft also 
announced significant progress on the development of the first Nokia products 
incorporating Windows Phone. With hundreds of personnel already engaged on 
joint engineering efforts, the companies are collaborating on a portfolio of 
new Nokia devices. Nokia has also started porting key applications and services 
to operate on Windows Phone and joint outreach has begun to third party 
application developers. 
 
'At the highest level, we have entered into a win-win partnership,' said 
Stephen Elop, President and CEO of Nokia Corporation. 'It is the complementary 
nature of our assets, and the overall competitiveness of that combined 
offering, that is the foundation of our relationship.' 
 
'Our agreement is good for the industry,' said Steve Ballmer, CEO of Microsoft. 
'Together, Nokia and Microsoft will innovate with greater speed, and provide 
enhanced opportunities for consumers and our partners to share in the success 
of our ecosystem.' 
 
The relationship is structured around four broad areas: 
 
1. A combination of complementary assets, which make the partnership truly 
unique, including: 
 
- Nokia to deliver mapping, navigation, and certain location-based services to 
the Windows Phone ecosystem. Nokia will build innovation on top of the Windows 
Phone platform in areas such as imaging, while contributing expertise on 
hardware design and language support, and helping to drive the development of 
the Windows Phone platform. Microsoft will provide Bing search services across 
the Nokia device portfolio as well as contributing strength in productivity, 
advertising, gaming, social media and a variety of other services. The 
combination of navigation with advertising and search will enable better 
monetization of Nokia's navigation assets and completely new forms of 
advertising revenue. 
- Joint developer outreach and application sourcing, to support the creation of 
new local and global applications, including making Windows Phone developer 
registration free for all Nokia developers. 
- Opening a new Nokia-branded global application store that leverages the 
Windows Marketplace infrastructure. Developers will be able to publish and 
distribute applications through a single developer portal to hundreds of 
millions of consumers that use Windows Phone, Symbian and Series 40 devices. 
- Contribution of Nokia's expertise in operator billing to ensure participants 
in the Windows Phone ecosystem can take advantage of Nokia's billing agreements 
with 112 operators in 36 markets. 
 
2. Microsoft will receive a running royalty from Nokia for the Windows Phone 
platform, starting when the first Nokia products incorporating Windows Phone 
ship. The royalty payments are competitive and reflect the large volumes that 
Nokia expects to ship, as well as a variety of other considerations related to 
engineering work to which both companies are committed. Microsoft delivering 
the Windows Phone platform to Nokia will enable Nokia to significantly reduce 
operating expenses. 
 
3. In recognition of the unique nature of Nokia's agreement with Microsoft and 
the contributions that Nokia is providing, Nokia will receive payments measured 
in the billions of dollars. 
 
4. An agreement that recognizes the value of intellectual property and puts in 
place mechanisms for exchanging rights to intellectual property. Nokia will 
receive substantial payments under the agreement. 
 
With the definitive agreement now signed, both companies will begin engaging 
with operators, developers and other partners to help the industry understand 
the benefits of joining the new ecosystem. At the same time, work will continue 
on developing Nokia products on the Windows Phone platform, with the aim of 
securing volume device shipments in 2012. The scale of both companies' mutual 
commitment is significant and is in keeping with the intention to build a new 
ecosystem based on this long-term, strategic partnership. 
 
About Nokia 
Nokia is committed to connecting people to what matters to them by combining 
advanced mobile technology with personalized services. More than 1.3 billion 
people connect to one another with a Nokia, from our most affordable 
voice-optimized mobile phones to advanced Internet-connected smartphones sold 
in virtually every market in the world. Through Ovi (www.ovi.com), people also 
enjoy access to maps and navigation on mobile, a rapidly expanding applications 
store, a growing catalog of digital music, free email and more. Nokia's NAVTEQ 
is a leader in comprehensive digital mapping and navigation services, and Nokia 
Siemens Networks is one of the leading providers of telecommunications 
infrastructure hardware, software and professional services globally. 
 
FORWARD-LOOKING STATEMENTS 
It should be noted that certain statements herein which are not historical 
facts are forward-looking statements, including, without limitation, those 
regarding: A) the expected plans and benefits of our strategic partnership with 
Microsoft to combine complementary assets and expertise to form a global mobile 
ecosystem and to adopt Windows Phone as our primary smartphone platform; B) the 
timing and expected benefits of our new strategy, including expected 
operational and financial benefits and targets as well as changes in leadership 
and operational structure; C) the timing of the deliveries of our products and 
services; D) our ability to innovate, develop, execute and commercialize new 
technologies, products and services; E) expectations regarding market 
developments and structural changes; F) expectations and targets regarding our 
industry volumes, market share, prices, net sales and margins of products and 
services; G) expectations and targets regarding our operational priorities and 
results of operations; H) expectations and targets regarding collaboration and 
partnering arrangements; I) the outcome of pending and threatened litigation; 
J) expectations regarding the successful completion of acquisitions or 
restructurings on a timely basis and our ability to achieve the financial and 
operational targets set in connection with any such acquisition or 
restructuring; and K) statements preceded by 'believe,' 'expect,' 'anticipate,' 
'foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similar 
expressions. These statements are based on management's best assumptions and 
beliefs in light of the information currently available to it. Because they 
involve risks and uncertainties, actual results may differ materially from the 
results that we currently expect. Factors that could cause these differences 
include, but are not limited to: 1) our ability to succeed in creating a 
competitive smartphone platform for high-quality differentiated winning 
smartphones or in creating new sources of revenue through our partnership with 
Microsoft; 2) the expected timing of the planned transition to Windows Phone as 
our primary smartphone platform and the introduction of mobile products based 
on that platform; 3) our ability to maintain the viability of our current 
Symbian smartphone platform during the transition to Windows Phone as our 
primary smartphone platform; 4) our ability to realize a return on our 
investment in MeeGo and next generation devices, platforms and user 
experiences; 5) our ability to build a competitive and profitable global 
ecosystem of sufficient scale, attractiveness and value to all participants and 
to bring winning smartphones to the market in a timely manner; 6) our ability 
to produce mobile phones in a timely and cost efficient manner with 
differentiated hardware, localized services and applications; 7) our ability to 
increase our speed of innovation, product development and execution to bring 
new competitive smartphones and mobile phones to the market in a timely manner; 
8) our ability to retain, motivate, develop and recruit appropriately skilled 
employees; 9) our ability to implement our strategies, particularly our new 
mobile product strategy; 10) the intensity of competition in the various 
markets where we do business and our ability to maintain or improve our market 
position or respond successfully to changes in the competitive environment; 11) 
our ability to maintain and leverage our traditional strengths in the mobile 
product market if we are unable to retain the loyalty of our mobile operator 
and distributor customers and consumers as a result of the implementation of 
our new strategy or other factors; 12) our success in collaboration and 
partnering arrangements with third parties, including Microsoft; 13) the 
success, financial condition and performance of our suppliers, collaboration 
partners and customers; 14) our ability to source sufficient quantities of 
fully functional quality components, subassemblies and software on a timely 
basis without interruption and on favorable terms, including the disruption of 
production and/or deliveries from any of our suppliers as a result of adverse 
conditions in the geographic areas where they are located; 15) our ability to 

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April 21, 2011 06:10 ET (10:10 GMT)

DJ DGAP-UK-Regulatory: Nokia and Microsoft sign -2-

manage efficiently our manufacturing, service creation, delivery and logistics without interruption; 16) our ability to ensure the timely delivery of sufficient volumes of products that meet our and our customers' and consumers' requirements and manage our inventory and timely adapt our supply to meet changing demands for our products; 17) any actual or even alleged defects or other quality, safety and security issues in our products; 18) any actual or alleged loss, improper disclosure or leakage of any personal or consumer data collected or made available to us or stored in or through our products; 19) our ability to successfully manage costs, including our ability to achieve targeted costs reductions and to effectively and timely execute related restructuring measures, including personnel reductions; 20) our ability to effectively and smoothly implement the new operational structure for our devices and services business effective April 1, 2011; 21) the development of the mobile and fixed communications industry and general economic conditions globally and regionally; 22) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 23) our ability to protect the technologies, which we or others develop or that we license, from claims that we have infringed third parties' intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products and services; 24) our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented, standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 25) the impact of changes in government policies, trade policies, laws or regulations and economic or political turmoil in countries where our assets are located and we do business; 26) any disruption to information technology systems and networks that our operations rely on; 27) unfavorable outcome of litigations; 28) allegations of possible health risks from electromagnetic fields generated by base stations and mobile products and lawsuits related to them, regardless of merit; 29) our ability to achieve targeted costs reductions and increase profitability in Nokia Siemens Networks and to effectively and timely execute related restructuring measures; 30) Nokia Siemens Networks' ability to maintain or improve its market position or respond successfully to changes in the competitive environment; 31) Nokia Siemens Networks' liquidity and its ability to meet its working capital requirements; 32) whether Nokia Siemens Networks' acquisition of the majority of Motorola's wireless network infrastructure assets will be completed in a timely manner, or at all, and, if completed, whether Nokia Siemens Networks is able to successfully integrate the acquired business, cross-sell its existing products and services to customers of the acquired business and realize the expected synergies and benefits of the planned acquisition; 33) Nokia Siemens Networks' ability to timely introduce new products, services, upgrades and technologies; 34) Nokia Siemens Networks' success in the telecommunications infrastructure services market and Nokia Siemens Networks' ability to effectively and profitably adapt its business and operations in a timely manner to the increasingly diverse service needs of its customers; 35) developments under large, multi-year contracts or in relation to major customers in the networks infrastructure and related services business; 36) the management of our customer financing exposure, particularly in the networks infrastructure and related services business; 37) whether ongoing or any additional governmental investigations into alleged violations of law by some former employees of Siemens AG may involve and affect the carrier-related assets and employees transferred by Siemens AG to Nokia Siemens Networks; 38) any impairment of Nokia Siemens Networks customer relationships resulting from ongoing or any additional governmental investigations involving the Siemens carrier-related operations transferred to Nokia Siemens Networks; as well as the risk factors specified on pages 12-39 of Nokia's annual report Form 20-F for the year ended December 31, 2010 under Item 3D. 'Risk Factors.' Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Media Enquiries: Nokia Communications Tel. [phone] Email: [e-mail] www.nokia.com News Source: NASDAQ OMX 21.04.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de =-------------------------------------------------------------------------- Language: English Company: Nokia Finland Phone: Fax: E-mail: Internet: ISIN: FI0009000681 Category Code: MSC LSE Ticker: 0HAF Sequence Number: 777 Time of Receipt: Apr 21, 2011 12:10:04 End of Announcement DGAP News-Service =--------------------------------------------------------------------------

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April 21, 2011 06:10 ET (10:10 GMT)