Nokia Siemens Networks Will Begin Operations on April 1, 2007

Mar 14, 2007, 01:00 ET from Nokia

    ESPOO, Finland, March 14 /PRNewswire-FirstCall/ -- Nokia (NYSE:   NOK)
 and Siemens announced today that Nokia Siemens Networks will start
 operations on April 1, 2007. Nokia and Siemens are contributing their
 respective carrier networks businesses and corresponding assets into this
 new 50:50 company. Both parties have agreed to increase their respective
 net asset contributions to the new company, with Siemens to contribute EUR
 2.4 billion and Nokia to contribute EUR 1.7 billion. With its global scale
 and size, Nokia Siemens Networks is in a great position to play an industry
 leading role by developing innovative, cost-efficient products and
 services. Nokia Siemens Networks will have one of the world's best R&D
 teams, who will advance the development of product platforms and services
 for next-generation fixed and mobile networks.
     "In the consolidating telecommunications market Nokia Siemens Networks
 will offer customers cost-saving, leading-edge solutions that will also
 optimally meet their needs with regards to convergence," said Nokia CEO
 Olli-Pekka Kallasvuo.
     This view is shared by Klaus Kleinfeld, President and CEO of Siemens
 AG. "With the launch of Nokia Siemens Networks, a strong leader with
 excellent growth potential is entering the top league of the
 telecommunications market. In taking this step, we are dramatically
 strengthening our market position and creating sustainable value."
     Nokia Siemens Networks will set the highest standards of ethics and
 integrity. Based on the results of a pre-closing compliance review, Nokia
 and Siemens have reached an agreement on compliance and control processes
 that are meant to become a benchmark for the entire industry. Since Nokia
 will consolidate the financial results of Nokia Siemens Networks, both
 companies have agreed that the compliance processes will be based on
 Nokia's system and practices. In addition to a strong Finance and Control
 organization with centralized reporting systems and robust internal control
 processes, Nokia Siemens Networks will have an expanded compliance program
 including training programs and defined approval processes for governmental
 business and for engaging third party consultants in the sales process.
 Nokia Siemens Networks has zero tolerance for financial or other business
 misconduct and has also defined anti-corruption policies, principles and
     "Ethical behavior is about more than strong policies, programs and
 processes. It is also about company culture and individual choice.
 Integrity will be a prominent and deeply embedded part of the Nokia Siemens
 Networks culture," said Simon Beresford-Wylie, CEO of Nokia Siemens
     As communicated previously, the board of Nokia Siemens Networks will
 consist of seven members. Nokia President and CEO, Olli-Pekka Kallasvuo,
 will chair the board and Siemens CEO, Klaus Kleinfeld, will act as the
 vice-chair. The other members of the board are the head of Nokia
 Operational Human Resources, Juha Akras; Siemens CFO, Joe Kaeser; member of
 the Siemens managing board, Eduardo Montes; head of Nokia Technology
 Platforms, Niklas Savander; and Nokia CFO, Rick Simonson.
     About Nokia
     Nokia is a world leader in mobile communications, driving the growth
 and sustainability of the broader mobility industry. Nokia connects people
 to each other and the information that matters to them with easy-to-use and
 innovative products like mobile phones, devices and solutions for imaging,
 games, media and businesses. Nokia provides equipment, solutions and
 services for network operators and corporations. Further information is
 available at
     About Siemens
     Siemens (Berlin and Munich) is a global powerhouse in electrical
 engineering and electronics. The company has around 475,000 employees
 (incl. discontinued operations) working to develop and manufacture
 products, design and install complex systems and projects, and tailor a
 wide range of services for individual requirements. Siemens provides
 innovative technologies and comprehensive know-how to benefit customers in
 over 190 countries. Founded more than 155 years ago, the company focuses on
 the areas of Information and Communications, Automation and Control, Power,
 Transportation, Medical, and Lighting. In fiscal 2006 (ended September 30),
 Siemens had sales of EUR87.3 billion and net income of EUR3.033 billion,
 according to U.S. GAAP. Further information is available on the Internet
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     This document contains forward-looking statements and information -
 that is, statements related to future, not past, events. These statements
 may be identified by words as "expects," "anticipates," "intends," "plans,"
 "believes," "seeks," "estimates," "will" or words of similar meaning. Such
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 and are, therefore, subject to certain risks and uncertainties. A variety
 of factors, many of which are beyond Siemens' control, affect its
 operations, performance, business strategy and results and could cause the
 actual results, performance or achievements of Siemens worldwide to be
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 us, particular uncertainties arise, among others, from: changes in general
 economic and business conditions (including margin developments in major
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