Nokia completes acquisition of gate5

Location based applications become an integral part of Nokia’s multimedia experiences

October 12, 2006 - Espoo, Finland and Berlin, Germany - Nokia today announced that it has completed its acquisition of gate5 AG, a leading supplier of mapping, routing and navigation software and services.

The acquisition of gate5 is an important step in developing the new product category of multimedia computers that offer people multiple ways to connect to information, entertainment and other people. In the end of September, Nokia introduced the Nokia N95 multimedia computer with integrated GPS and navigation functionality. The Nokia N95 maps and navigation application is based on the gate5 software platform.

“We see that location based experiences, such as search, mapping and navigation will be a fundamental platform for many applications in Nokia Nseries devices going forward.” said Anssi Vanjoki, Executive Vice President and General Manager, Multimedia, Nokia. “Nokia’s strategy in this space is to offer world-leading location based experiences as an integrated offering to our customers. I’m excited to see the new team to bring exciting and easy-to-use location based applications into the upcoming Nokia Nseries multimedia computers and into many other Nokia products”.

With the completion of this acquisition, gate5 now enhances the Multimedia Business Group’s organization as a center of competency for location based experiences in Berlin, Germany. The gate5 team continues to be dedicated to delivering world class solutions to third party customers in the PND (Personal Navigation Device) and mobile devices space. It will maintain its multi-platform strategy for mobile devices, including the support of Symbian, Linux, Windows Mobile, and Palm platforms.

Together with the closing of the transaction, Nokia also announced that with immediate effect it has established a sales unit for its Location Based Software and Services in Hong Kong, targeting its PND customers in the Asia-Pacific region.

About Nokia
Nokia is the 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.


Nokia Forward-Looking Statement 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; and G) statements preceded by “believe,” “expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed” 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; and 21) the impact of changes in government policies, laws or regulations; as well as 22) 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.”

Contact Information

Kari Tuutti

Communications

Nokia, Multimedia

Contact via E-mail