3GSM World Congress 2007 BARCELONA, Spain, ESPOO, Finland, MUNICH,
Germany and TOKYO, Japan, February 12 /PRNewswire-FirstCall/ -- At the 3GSM
World Congress in Barcelona today, Nokia and Siemens Networks and NEC
Corporation (NEC) announced they have signed a Memorandum of Understanding
(MoU) for the co-operation in the area of WCDMA radio networks.
    The co-operation consists of continued support and development for the
installed base of Siemens Networks and NEC WCDMA base stations and radio
networks controllers. The agreement is a logical continuation to the
successful NEC and Siemens Networks WCDMA collaboration, which has been
carried out through their joint venture company Mobisphere. Mobisphere is
expected to continue as a joint venture of NEC and the future Nokia Siemens
Networks after the creation of Nokia Siemens Networks.
    In addition to the support and development for WCDMA radio access
network installed base, NEC, Nokia and Siemens Networks will cooperate in
further enhancing 3G/WCDMA businesses. The companies also will continue to
discuss the possible cooperation beyond 3G areas like LTE.
    NEC, Nokia and Siemens Networks have agreed to form this co-operation
to further strengthen their state-of-art WCDMA product offering, and to
provide mobile operators with the highest quality, best performance and
most cost-efficient networks. This agreement will reinforce the companies'
competitive position in the WCDMA market.
    The planned merger to create Nokia Siemens Networks is expected to
close in the first quarter of 2007, subject to previously announced closing
conditions.
    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. Furhter information is
available at http://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 year 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 http://www.siemens.com.
    About NEC
    NEC Corporation (NASDAQ: NIPNY) is one of the world's leading providers
of Internet, broadband network and enterprise business solutions dedicated
to meeting the specialized needs of its diverse and global base of
customers. NEC delivers tailored solutions in the key fields of computer,
networking and electron devices, by integrating its technical strengths in
IT and Networks, and by providing advanced semiconductor solutions through
NEC Electronics Corporation. The NEC Group employs more than 150,000 people
worldwide. For additional information, please visit the NEC home page at:
http://www.nec.com * Newsroom: http://www.nec.co.jp/press/en/
    Forward looking Statements
    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; and 22) satisfaction of the conditions to the merger of
Nokia's and Siemens' communications service provider businesses, including
achievement of agreement between Nokia and Siemens on the results and
consequences of a Siemens compliance review, and closing of transaction,
and Nokia's and Siemens' ability to successfully integrate the operations
and employees of their respective businesses; as well as 23) the risk
factors specified on pages 12 - 22 of the company's annual report on Form
20-F for the year ended December 31, 2005 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.