Nokia to invest $75mn in Chennai plant

* Investment of $210 million in the plant since January 2006

Chennai, December 5, 2007: Nokia today announced fresh investments to the tune of USD 75 million towards its manufacturing plant in Sriperumbudur, Chennai, for the year 2008. This investment is geared towards enhancing the capacity of the manufacturing plant to cater to the burgeoning need of the Indian and other emerging markets. The manufacturing plant currently employs approximately 6000 people.

Nokia initially committed to invest USD 150 million in early 2006 over a four year period. However, given the buoyant demand for mobility in India, Nokia has so far cumulatively already invested USD 210 million in its Chennai operations. Today's investment is an addition to this figure. Nokia started manufacturing from Sriperumbudur in January 2006 and has achieved the distinction of the fastest ramp up by any Nokia factory worldwide. The plant plays an integral role in Nokia's global production network for mobile devices and is the tenth manufacturing facility of the company.

"We are extremely pleased with the progress made by our manufacturing plant in Sriperumbudur, Chennai. The decision to make additional investment in the plant is a reflection of Nokia's commitment to the Indian mobile communications industry and of the increasing demand for mobile devices from Asia, Middle East and Africa. Nokia will continuously strengthen its manufacturing network to drive greater agility within the business and increase its competitiveness," said Raimo Puntala, Senior Vice President, Operations and Logistics, Nokia.

Currently, approximately 50 percent of the production from the plant is consumed domestically and the rest is exported to countries across Middle East and Africa, Asia, Australia and New Zealand.

"It is a moment of great pride for all of us at Nokia as the India plant sets another benchmark of achieving the fastest ramp up across all Nokia facilities worldwide. This is a testimony of operational efficiencies achieved through people, processes, global best practices and standards," said Mr. Sachin Saxena, Director-Operations, Nokia India. "Chennai has proved to be an ideal location for our manufacturing plant and we are proud of our partnership here," he added.

Nokia's manufacturing facility in Sriperumbudur, Chennai, has been instrumental in enabling Chennai to emerge as the mobile communications manufacturing hub for India. The Nokia Telecom Park currently has seven global component manufacturers, two of which are commercially operational and supplying components to Nokia's manufacturing plant in Chennai.

In October 2007, Nokia announced its plans to establish a state-of-the-art Healthcare Centre at the Nokia Telecom Park in Sriperumbudur, Chennai. The 3000 square meters Healthcare Centre will cater to needs of Nokia employees, employees of the SEZ partners and the local community. The Nokia Healthcare Centre is being set up in association with a professional healthcare group and will be fully operational by mid 2008.

Nokia has undertaken a number of Community Involvement initiatives at Sriperumbudur, Chennai keeping in mind the needs of the local community. This includes Chennai Factory Fence Line School Improvement Plans where it is working with students in and around Sriperumbudur to impart IT education programs and life skills. In six months, Nokia has reached out to about six schools and connected with 6500 students.

About Nokia

Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. Nokia makes a wide range of mobile devices and provides people with experiences in music, navigation, video, television, imaging, games and business mobility through these devices. Nokia also provides equipment, solutions and services for communications networks.