Nokia Siemens Networks Will Begin Operations on April 1, 2007

    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
 materials.
     "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
 Networks.
     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 www.nokia.com.
     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
 at: www.siemens.com.
     Forward-looking disclaimer
     Nokia disclaimer
     It should be noted that certain statements herein which are not
 historical facts, including, without limitation, those regarding: A) the
 timing of product and solution deliveries; B) our ability to develop,
 implement and commercialize new products, solutions and technologies; C)
 expectations regarding market growth, developments and structural changes;
 D) expectations regarding our mobile device volume growth, market share,
 prices and margins; E) expectations and targets for our results of
 operations; F) the outcome of pending and threatened litigation; G)
 expected timing, scope and effects of the merger of Nokia's and Siemens'
 communications service provider businesses; and H) statements preceded by
 "believe," "expect," "anticipate," "foresee," "target," "estimate,"
 "designed," "plans," "will" or similar expressions are forward-looking
 statements. Because these statements 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) the extent of the growth of the mobile communications
 industry, as well as the growth and profitability of the new market
 segments within that industry which we target; 2) the availability of new
 products and services by network operators and other market participants;
 3) our ability to identify key market trends and to respond timely and
 successfully to the needs of our customers; 4) the impact of changes in
 technology and our ability to develop or otherwise acquire complex
 technologies as required by the market, with full rights needed to use; 5)
 competitiveness of our product portfolio; 6) timely and successful
 commercialization of new advanced products and solutions; 7) price erosion
 and cost management; 8) the intensity of competition in the mobile
 communications industry and our ability to maintain or improve our market
 position and respond to changes in the competitive landscape; 9) our
 ability to manage efficiently our manufacturing and logistics, as well as
 to ensure the quality, safety, security and timely delivery of our products
 and solutions; 10) inventory management risks resulting from shifts in
 market demand; 11) our ability to source quality components without
 interruption and at acceptable prices; 12) our success in collaboration
 arrangements relating to development of technologies or new products and
 solutions; 13) the success, financial condition and performance of our
 collaboration partners, suppliers and customers; 14) any disruption to
 information technology systems and networks that our operations rely on;
 15) our ability to protect the complex technologies that 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
 solution offerings; 16) general economic conditions globally and, in
 particular, economic or political turmoil in emerging market countries
 where we do business; 17) developments under large, multi-year contracts or
 in relation to major customers; 18) exchange rate fluctuations, including,
 in particular, fluctuations between the euro, which is our reporting
 currency, and the US dollar, the Chinese yuan, the UK pound sterling and
 the Japanese yen; 19) the management of our customer financing exposure;
 20) our ability to recruit, retain and develop appropriately skilled
 employees; 21) the impact of changes in government policies, laws or
 regulations; as well as 22) the risk factors specified on pages 12 - 24 of
 the company's annual report on Form 20-F for the year ended December 31,
 2006 under "Item 3.D 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 update publicly or
 revise forward-looking statements, whether as a result of new information,
 future events or otherwise, except to the extent legally required."
     Siemens disclaimer
     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
 statements are based on our current expectations and certain assumptions,
 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
 materially different from any future results, performance or achievements
 that may be expressed or implied by such forward-looking statements. For
 us, particular uncertainties arise, among others, from: changes in general
 economic and business conditions (including margin developments in major
 business areas); the challenges of integrating major acquisitions and
 implementing joint ventures and other significant portfolio measures;
 changes in currency exchange rates and interest rates; introduction of
 competing products or technologies by other companies; lack of acceptance
 of new products or services by customers targeted by Siemens worldwide;
 changes in business strategy; the outcome of investigations and legal
 proceedings as well as various other factors. More detailed information
 about certain of these factors is contained in Siemens' filings with the
 SEC, which are available on the Siemens website, www.siemens.com and on the
 SEC's website, www.sec.gov. Should one or more of these risks or
 uncertainties materialize, or should underlying assumptions prove
 incorrect, actual results may vary materially from those described in the
 relevant forward-looking statement as expected, anticipated, intended,
 planned, believed sought, estimated or projected. Siemens does not intend
 or assume any obligation to update or revise these forward-looking
 statements in light of developments which differ from those anticipated.
 
 

SOURCE Nokia

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.