NOKIA CLOSES 2003 WITH EXCELLENT FOURTH QUARTER

NOKIA CLOSES 2003 WITH EXCELLENT FOURTH QUARTER 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). 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 www.nokia.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/01/22/20040122BIT00370/wkr0001.doc Full report http://www.waymaker.net/bitonline/2004/01/22/20040122BIT00370/wkr0002.pdf Full report