Nokia reports Q3 2007 net sales of EUR 12.9 billion and EPS of EUR 0.40

Nokia market share grows to an estimated 39%; total device operating margin up sequentially

* As of April 1, 2007, Nokia results include those of Nokia Siemens Networks on a fully consolidated basis. Nokia Siemens Networks, a company jointly owned by Nokia and Siemens, is comprised of the former Nokia Networks and Siemens’ carrier-related operations for fixed and mobile networks. Accordingly, the results of Nokia Group and Nokia Siemens Networks for the third quarter 2007 are not directly comparable to results for the third quarter 2006. Nokia’s third quarter 2006 included the former Nokia Networks business group only.

** Q3 2007 special items:
- EUR 86 million restructuring charge and other one-time items in Nokia Siemens Networks (impacting Nokia Siemens Networks operating profit)
- EUR 60 million gain on sale of real estate (impacting Group Common Functions operating profit)
- Excluding special items, diluted EPS was EUR 0.40

** Q3 2006 special items:
- Mobile Phones operating profit included charges of EUR 128 million primarily related to the restructuring of the CDMA business and associated asset write-downs.
- Excluding this special item, diluted EPS was EUR 0.23.

*** Important note to Nokia Siemens Networks Q3 2007 operating profit and Nokia EPS: In addition to the ’special items’ listed above, Nokia Siemens Networks reported operating profit also included EUR 144 million in intangible asset amortization and other Purchase Price Accounting related items.

THIRD QUARTER 2007 HIGHLIGHTS

• Nokia diluted EPS of EUR 0.40, excluding special items, growing 74% from Q3 2006.
• Nokia operating cash flow of EUR 2.0 billion.
• Nokia operating margin of 14.6%, up sequentially from 11.0% in Q2 2007, excluding special items.
• Nokia device volumes of 111.7 million units, up 11% sequentially and up 26% year on year.
• Estimated industry device volumes of 286 million units, up 9% sequentially and up 17% year on year.
• Nokia estimated device market share of 39%, up from 38% in Q2 2007 and up from 36% in Q3 2006.
• The proportion of devices Nokia sold in the under EUR 30 category increased significantly, both sequentially and year on year.
• Total device operating margin, and Mobile Phones gross margin, increased sequentially, despite Nokia’s total device ASP of EUR 82 decreasing from EUR 90 in Q2 2007.
• Nokia Siemens Networks operating margin, excluding special items, was -1.0% and was a positive 3.0%, excluding special items and Purchase Price Accounting related items.