Nokia and Siemens announce business unit and regional leaders for Nokia Siemens Networks

Munich / Helsinki, Aug 25, 2006 - Nokia and Siemens today announced the business unit and regional leadership team for Nokia Siemens Networks. These appointments will be effective when the new company starts operations, which is expected by January 1, 2007, subject to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of detailed implementation steps.

Nokia and Siemens announced previously that Simon Beresford-Wylie would assume the position of Chief Executive Officer (CEO) at Nokia Siemens Networks; Mika Vehviläinen would serve as Chief Operating Officer (COO); Karl-Christoph Caselitz would serve as Chief Market Operations Officer (CMO); and Peter Schönhofer would serve as Chief Financial Officer (CFO). Activities relating to global supply, such as research and development, procurement, manufacturing, and delivery and logistics will report to the Chief Operating Officer; customer interface and local fulfillment, including sales and services will report to the Chief Market Operations Officer; and information technology and all finance and control activities will report to the Chief Financial Officer. Staff functions and the COO, CMO and CFO will report to the Chief Executive Officer.

“We are making excellent progress in planning for the start of operations at Nokia Siemens Networks,” said Simon Beresford-Wylie, who will assume the position of Chief Executive Officer at Nokia Siemens Networks immediately upon the closing of the merger. “We have drawn from the best people at both Nokia and Siemens to create a strong, customer-focused leadership team and I am proud to join with them in the new company.” Beresford-Wylie is currently Executive Vice President and General Manager of Networks at Nokia.

The business units of Nokia Siemens Networks will be global organizations with management and personnel distributed in many countries, including both Finland and Germany. Stephan Scholz, currently Senior Vice President and Head of Carrier Development in Siemens Communications, will lead the Research, Technology and Platforms organization, focusing on research, technology and cross-business unit synergies including common platforms. Scholz will report to Vehviläinen. Business unit leaders for Nokia Siemens Networks will be:


* José Costa e Silva, who will lead the Services business unit. Costa e Silva, currently Senior Vice President and Head of Europe and Americas at Mobile Networks in Siemens Communications, will report to Caselitz. Costa e Silva will be based in Germany.

* Ari Lehtoranta, who will lead the Radio Access business unit. Lehtoranta, currently Senior Vice President & General Manager of the Radio business at Nokia, will report to Vehviläinen. Lehtoranta will be based in Finland.

* Christian Unterberger, who will lead the Service Core and Applications business unit. Unterberger, currently President Fixed Networks at Siemens Communications, will report to Vehviläinen. Unterberger will be based in Germany.

* Christian Fredrikson, who will lead the Operation Support Systems business unit. Fredrikson, currently General Manager of the Core Networks business at Nokia, will report to Vehviläinen. Fredrikson will be based in Finland.

* Martin Lüst, who will lead the Broadband Access business unit. Lüst, currently President, Fixed Networks Access at Siemens Communications, will report to Vehviläinen. Lüst will be based in Germany.

* Bernd Schumacher, who will lead the IP Networking and Transport business unit. Schumacher, currently President, Siemens Optical Networks at Siemens Communications, will report to Vehviläinen. Schumacher will be based in Germany.

The regional organization for Nokia Siemens Networks will report to Caselitz. Its leaders will be:


* Mark Louison, who will lead the North American region. Louison is currently Senior Vice President of North America for Nokia Networks.

* Fernando Terni, who will lead the Latin American region. Terni is currently Senior Vice President of Latin America for Nokia Networks.

* Zhiqiang Zhang, who will lead the China region. Zhang is currently General Manager of Siemens Communications in China. David Ho, currently Senior Vice President of China for Nokia Networks, will serve as Chairman of Nokia Siemens Networks in China.

* Jürgen Bill, who will lead the Western and Southern Europe region. Bill is currently Senior Vice President of Asia Pacific for Mobile Networks in Siemens Communications.

* Kai Uebach, who will lead the Northern Europe region. Uebach is currently President of the EMEA Region for Mobile Networks in Siemens Communications.

* Jan Cron, who will lead the Middle East and Africa region. Cron is currently Vice President & General Manager of the Middle East Region in Mobile Networks for Siemens Communications.

* Rajeev Suri who will lead the Asia Pacific region. Suri is currently Senior Vice President of Asia Pacific for Nokia Networks.

The appointments announced today become effective immediately upon the closing of the merger. When the transaction closes, Nokia Siemens Networks will be a global communications leader with strong positions in important growth segments of fixed and mobile network infrastructure and services. It will be positioned to lead the development and implementation of revenue-generating and cost-saving products and services via its scale and global reach. The combined company will have a world-class fixed-mobile convergence capability, a complementary global base of customers, a deep presence in both developed and emerging markets, and one of the industry’s largest and most experienced service organizations.

About Siemens
Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has around 461,000 employees 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 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 2005 (ended September 30), Siemens had sales from continuing operations of EUR 75.4 billion and net income of EUR 3.058 billion.
Further information is available on the Internet at: http://www.siemens.com

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 http://www.nokia.com

Forward Looking Statements
This announcement includes “forward-looking statements” and information which are not historical facts. These statements are based on the current expectations of the management of Nokia and Siemens and are naturally subject to uncertainty and changes in circumstances. The forward-looking statements contained herein include statements about the expected timing and scope of the merger of Nokia’s and Siemens’ communications service provider businesses, anticipated growth potential and earnings enhancements, estimated profitability levels, sources, timing and amount of estimated cost synergies, leadership and market position, future product portfolio, geographic coverage and customer base, future investments in technologies and services and all other statements in this announcement other than historical facts. Forward-looking statements include, without limitation, statements typically containing words such as “believe”, “expect”, “anticipate”, “foresee”, “target”, “estimate”, “designed”, “plans”, “will” or words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, the satisfaction of the conditions to the merger and closing of the transaction, and Nokia’s and Siemens’ ability to successfully integrate the operations and employees of their respective communications service provider businesses, as well as additional factors relating to, for example, developments in the mobile communications industry, changes in technology and the ability to develop or otherwise acquire complex technologies as required by the market with full rights needed to use, timely and successful commercialization of new advanced products and solutions, intensity of competition and various other factors. More detailed information about certain of these factors is contained in Nokia’s and Siemens’ filings with the SEC, which are available on their respective websites, http://www.nokia.com and http://www.siemens.com, and on the SEC’s website, http://www.sec.gov. 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. Neither Nokia nor Siemens 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. In addition to “forward-looking statements”, this announcement also includes certain terms like “joint venture”, “partnership” or words of a similar nature describing the new company, or the new companies, resulting from the merger, which words are used in this announcement in their generic sense and the common language meaning and do not imply, or intend to imply, any specific legal, tax, accounting or other regulatory or officially standardized definition or meaning.

Contact Information

Marion Bludszuweit

Siemens Communications

Siemens AG

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