Ad-hoc | 22 January 2004 14:47

NOKIA CLOSES 2003 WITH EXCELLENT FOURTH QUARTER

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– NOKIA CLOSES 2003 WITH EXCELLENT FOURTH QUARTER January 22, 2004 Nokia Mobile Phones grows sales and delivers record profits for Q4 and full year 2003 Nokia Networks demonstrates good profitability in Q4 due to strong seasonality and favorable product mix as well as impact of restructuring measures Highlights 4Q 2003 (all comparisons are year on year): – Net sales decreased 1% to EUR 8.8 billion (up 8% at constant currency) – Nokia Mobile Phones net sales increased 4% to EUR 7.0 billion (up 15% at constant currency) – Nokia Mobile Phones volumes grew 20% to 55.3 million units, leading to an estimated 38% market share – Mobile phone industry volumes were an estimated 145 million units – Excellent profitability with Nokia Mobile Phones pro forma and reported operating margins of 24.7% and 24.4%, respectively – Color-screen phones made up half of Nokia Mobile Phones volumes – Nokia Networks sales were EUR 1.7 billion, exceeding Nokia expectations – Nokia Networks pro forma and reported operating margins improved to 12.1% and 2.4%, respectively – Pro forma EPS (diluted) grew 12% to EUR 0.29; reported EPS (diluted) grew 14% to EUR 0.25 Highlights full-year 2003 (all comparisons to full-year 2002): – Net sales decreased 2% to EUR 29.5 billion (up 7% at constant currency) – Nokia Mobile Phones net sales were up 2% to EUR 23.6 billion (up 12% at constant currency) – Nokia Mobile Phones volumes grew 18% to 179.3 million units – Total mobile phone industry volumes grew 16% to an estimated 471 million units – Nokia’s estimated mobile phone market share was slightly above 38% – Nokia Mobile Phones achieved record pro forma operating margins of 23.6% (reported 23.2%) – Nokia Networks sales decreased 14% to EUR 5.6 billion with a pro forma operating margin of – 4.2% (reported -3.9%) – Pro forma EPS (diluted) decreased 4% to EUR 0.79, reported EPS (diluted) grew 6% to EUR 0.75 Nokia’s Board of Directors will propose a dividend of EUR 0.30 per share for 2003 (EUR 0.28 per share for 2002). end of ad-hoc-announcement (c)DGAP 22.01.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: 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 and targets for our results of operations; and E)statements preceded by “believe,” “expect,” “anticipate,” “foresee” 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)developments in the mobile communications industry and the broader mobility industry, including the development of the mobile software and services market, as well as industry consolidation and other structural changes; 2)timing and success of the introduction and roll-out of new products and solutions;3) demand for and market acceptance of our products and solutions; 4)the impact of changes in technology and the success of our product and solution development; 5)the intensity of competition in the mobility industry and changes in the competitive landscape; 6)our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 7)pricing pressures; 8)the availability of new products and services by network operators and other market participants;9)general economic conditions globally and in our most important markets; 10)our success in maintaining efficient manufacturing and logistics as well as high quality of our products and solutions;11) inventory management risks resulting from shifts in market demand; 12)our ability to source quality components without interruption and at acceptable prices; 13)our success in collaboration arrangements relating to technologies, software or new products and solutions; 14)the success, financial condition, and performance of our collaboration partners, suppliers and customers; 15)any disruption to information technology systems and networks that our operations rely on; 16)our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions at commercially acceptable terms and without infringing any protected intellectual property rights;17)developments under large, multi-year contracts or in relation to major customers; 18)the management of our customer financing exposure; 19)exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar and the Japanese yen; 20)our ability to recruit, retain and develop appropriately skilled employees;21) our ability to implement our new organizational structure; and 22) the impact of changes in government policies, laws or regulations as well as 23)the risk factors specified on pages 11 to 18 of the company’s Form 20-F under “Item 3.D Risk Factors” for the year ended December 31, 2002. NOKIA, Helsinki – January 22, 2004 Media and Investor Contacts: Corporate Communications, tel. +358 7180 34495 or +358 7180 34900 Investor Relations Europe, tel. +358 7180 34289 Investor Relations US, tel. +1 972 894 4880 http://www.nokia.com – Nokia will report 1Q results on April 16, 2004 – Results announcements for 2Q and 3Q, 2004 are planned for July 15 and October 14, respectively. – The Annual General Meeting will be held on March 25, 2004. The complete press release with tables is available at http://www.nokia.com/2003/4Q/index.html http://press.nokia.com/PR/200401/931562_5.html ——————————————————————————– WKN: 870737; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 221447 Jän 04