Final Results - Part 1

Nokia Corporation
30 January 2001


PART 1

Nokia continues to consolidate strong leadership position,
announcing excellent fourth quarter and 2000 results

Nokia today announced the strongest annual operating results in
its history. The company increased its market share in both the
networks and mobile phone businesses and again achieved high
profitability:

In the fourth quarter,
- net sales grew by 46% to EUR 9 284 million,
- operating profit increased by 32% to EUR 1 726 million,
  operating margin was 18.6%,
- earnings per share (diluted) increased by 39% to EUR 0.25.

For the full year 2000,
- net sales grew by 54% to EUR 30 376 million,
- operating profit increased by 48% to EUR 5 776 million,
  operating margin was 19.0%,
- earnings per share (diluted) increased by 52% to EUR 0.82.
         
Nokia's Board of Directors will propose a dividend of EUR 0.28 per
share in respect of 2000.

EUR million               2000      1999    Change %  4Q/2000  4Q/1999
                                                    
Net sales               30 376    19 772      + 54      9 284    6 372
  Nokia Networks         7 714     5 673      + 36      2 361    1 740
  Nokia Mobile Phones   21 887    13 182      + 66      6 709    4 246
  Nokia Ventures           854       415     + 106        241      226
  Organization
Operating profit         5 776     3 908      + 48      1 726    1 308
  Nokia Networks         1 358     1 082      + 26        388      334
  Nokia Mobile Phones    4 879     3 099      + 57      1 429    1 059
  Nokia Ventures         - 387     - 175     - 121      - 127     - 84
  Organization
  Common Group Expenses   - 74      - 98                   36      - 1
Profit before tax and    5 862     3 845      + 52      1 770    1 273
minority interests
Net profit               3 938     2 577      + 53      1 204      853
EPS, EUR (split adjusted)                                              
Basic                     0.84      0.56      + 50       0.26     0.19
Diluted                   0.82      0.54      + 52       0.25     0.18
Proposed dividend, EUR    0.28      0.20      + 40                          

Commenting on the results, Jorma Ollila, Nokia's Chairman and CEO
said: 'Nokia's financial figures for the fourth quarter and the
full year 2000 are nothing short of extraordinary. They confirm
that we executed our business plans in accordance with our stated
forecast, and, building on this strong base we look forward to the
transition towards next generation technologies.'

'We entered the year in a leadership role and again proved that we
could convert that leadership into faster-than-market growth.
Backed by the success of 2000, I feel confident that with our
solid financial position, leading products, flexible operations
and strong Nokia brand, we are well prepared for the future,' said
Ollila.

The current economic environment and the ongoing evolution of
wireless technologies have made it challenging to forecast short-
term market developments. Nokia estimates first-quarter sales
growth in the region of 25-30% and EPS at the same level as the
first quarter 2000. This reflects somewhat slower-than-anticipated
market growth during the first quarter and the company's strategy
of aggressively gaining market share especially in mobile phones.
The profitability outlook for the balance of the year in Nokia
Networks remains as previously stated, with operating margins
estimated in the high teens, while margins for Nokia Mobile Phones
are expected to reach 20% at the latest in the fourth quarter
2001.

NOKIA IN OCTOBER - DECEMBER 2000
(International Accounting Standards, IAS, comparisons given to the
fourth quarter 1999 results)

Nokia's net sales in the fourth quarter 2000 increased by 46%
compared to the same period in 1999 and totaled EUR 9 284 million
(EUR 6 372 million in the fourth quarter of 1999).

Nokia Networks net sales for the fourth quarter 2000 increased by
36% to EUR 2 361 million (EUR 1 740 million in 1999). Nokia Mobile
Phones' sales increased by 58% to EUR 6 709 million (EUR 4 246
million). Sales of Nokia Ventures Organization increased by 7% to
EUR 241 million (EUR 226 million).

Operating profit for the fourth quarter 2000 increased by 32% to
EUR 1 726 million (EUR 1 308 million in 1999), representing an
operating margin of 18.6% (20.5% in 1999). Operating profit
includes a EUR 55 million positive item relating to the change in
the company's accounting for its Finnish pension plan.

Operating profit in Nokia Networks in the fourth quarter increased
by 16% to EUR 388 million (EUR 334 million), representing an
operating margin of 16.4% (19.2%). Operating profit in Nokia
Mobile Phones increased by 35% to EUR 1 429 million (EUR 1 059
million), representing an operating margin of 21.3% (24.9%). Nokia
Ventures Organization reported an operating loss of EUR 127
million (operating loss of EUR 84 million). Common Group Expenses,
which comprises Nokia Head Office and Nokia Research Center,
totaled EUR 36 million in income (EUR 1 million in expenses).

Operating margin in Nokia Networks was lower in the fourth quarter
than in the respective period of 1999, largely due to differences
in product mix. Operating margin for Nokia Mobile Phones was lower
than in the respective period of 1999, reflecting more competitive
market conditions. However, volume sales of new phones commencing
in September 2000 contributed to a higher operating margin than in
the third quarter 2000 (19.6%), consistent with the previously
stated forecast.

Financial income for the fourth quarter 2000 totaled EUR 51
million (financial expenses EUR 31 million in 1999). Profit before
tax and minority interests was EUR 1 770 million (EUR 1 273
million). Net profit totaled EUR 1 204 million (EUR 853 million).

Earnings per share increased to EUR 0.26 (basic) and to EUR 0.25
(diluted) compared with EUR 0.19 (basic) and EUR 0.18 (diluted) in
the corresponding period in 1999. Excluding the impact of the
change in the company's accounting for its Finnish pension plan,
EPS would have been EUR 0.25 (basic) and EUR 0.24 (diluted).



Nokia Networks

GSM operators continued to expand their existing networks during
the fourth quarter to meet capacity demands. In addition to major
deals with BT Cellnet in the United Kingdom and with Polkomtel in
Poland, Nokia signed GSM network expansion contracts in China and
Thailand.

Nokia won its biggest deal to date when it signed a Letter of
Intent with AT&T Wireless Services (AWS) to supply 1900 MHz radio
network systems and to support the evolution to third-generation
services. The contract includes Nokia's triple-mode
(GSM/EDGE/UMTS) base station radio solutions, which will enable
early deployment of 3G services in the United States.

In addition to the AWS contract, Nokia was chosen as a supplier
for third generation networks by operators in Finland, Italy,
Japan, Singapore and Spain, and by France Telecom / Orange and 
T-Mobil, both operating in several markets in Europe.

Nokia continued to prepare for early deployment of 3G services,
launching a complete family of 3G base stations and the IP-RAN
Common Radio Resources Management solution, which increases radio
network capacity. Nokia also launched the Nokia mPlatform, an open
platform for operators and service providers, and the Nokia
mPosition Solution, which provides operators with an end-to-end
solution for location-based services in mobile networks.

Cost effective Radio access and intelligent evolution toward all
IP solutions are essential in 3G-network build out. Nokia's
concepts not only offer operators an outstanding solution for
both, but also give them revenue generation platforms. Nokia's aim
is to enable its customers to be first to the 3G mass market, in a
cost efficient way.

In broadband DSL, Nokia signed three new contracts in China, the
Philippines and the US. Nokia's broadband solution is installed in
over 4,500 central offices whose telecom networks are connected to
90 million homes and businesses, providing significant potential
for future growth.


Nokia Mobile Phones

Nokia estimates global mobile phone market volume in the fourth
quarter 2000 at about 125 million units, an approximate 40%
increase compared with the previous year's fourth quarter and
sequential quarterly growth of about 25%. Nokia's fourth-quarter
mobile phone sales volume growth continued to clearly exceed
market growth.

The Nokia 3390 (GSM 1900), a new member of the Nokia 3300 family,
was introduced and started shipping in the North American market.
Deliveries of four other previously announced new digital phones
also began in the fourth quarter. For corporate customers, Nokia
unveiled the Nokia 22, a new Private Branch Exchange (PBX)
connectivity terminal, which is expected to start shipping in the
second quarter of 2001.

Nokia also introduced new products to meet the needs of the most
demanding users. The Nokia 9210 Communicator pioneers the Symbian
EPOC operating system, combining broad connectivity, high-speed
data and improved imaging to bring users a full-colour mobile
multimedia experience. In addition, Nokia's first Bluetooth
solution, the Nokia Connectivity Pack, makes it possible to use
the Nokia 6210 as a GSM modem to connect to a laptop within a
range of 10 meters. Shipments of the Nokia 9210 Communicator are
expected to start in the first half of 2001, while the Nokia
Connectivity Pack is expected to start shipping in the first
quarter of 2001.

For the Asia-Pacific region, Nokia unveiled, and has started
shipping, a new product for its fashion category, the Nokia 8250
(GSM 900/1800), making a subtle yet distinctive fashion statement.

In December, Nokia opened up its specification for ring tones and
mobile phone logos for free licensing in a move that will further
enhance its mobile phone sales potential as well as stimulate a
range of new services. Licenses can be be obtained through the
www.forum.nokia.com developer support website. In addition to the
increasingly popular SMS, Nokia sees high potential for other
rapidly evolving content types in personal messaging, such as
audio, graphics, still images, animation and video clips.


Nokia Ventures Organization

Nokia Internet Communications introduced a new security appliance
delivering enterprise-class security to corporates. Complementing
their existing market-leading family of security platforms, the
Nokia IP110 platform is specially designed for the corporate
satellite business, which requires a full VPN/firewall solution.

Nokia Venture Partners launched a new USD 500 million fund to
invest in start-up companies in the mobile Internet sector. Unlike
Nokia's first fund, this second fund includes third-party
investors: Goldman Sachs, BMC Software and CDBWebTech, amongst
others.

Nokia and Sichuan NTC Investment signed an agreement whereby Nokia
will deliver its Digital Multimedia Terminals to NTC broadcasting
services in NTC CATV investment areas in China.

BUSINESS ENVIRONMENT AND FORECASTS

Nokia will continue the strategy of strengthening its leading
market position in a profitable way as a top priority. Many new
growth engines offer unprecedented opportunities, as more and more
content goes mobile and the volume of applications and services on
the networks increases.

Although the general economic outlook in certain regions is
expected to cause some short-term uncertainty, Nokia believes its
markets are fundamentally strong. The company estimates first-
quarter sales growth in the region of 25-30% and first-quarter EPS
at the same level as the first quarter 2000. This reflects
somewhat slower-than-anticipated market growth during the first
quarter and the company's strategy of aggressively gaining market
share especially in mobile phones. The profitability outlook for
the balance of the year in Nokia Networks remains as previously
stated, with operating margins estimated in the high teens, while
margins for Nokia Mobile Phones are expected to reach 20% at the
latest in the fourth quarter 2001.

First-half revenue growth is estimated to be in the upper range of
25-35%. Nokia also reiterates its revenue growth target of 25-35%
for the year 2001 through to 2003, with continuing high
profitability.

The ongoing evolution of new wireless technologies also makes it
challenging to forecast short-term market developments. Operators
are actively investing in 3G wireless networks, and Nokia is well
positioned to serve them with its products and solutions. In the
current circumstances, Nokia has modified slightly its global
mobile phone market forecasts for 2001, with expectations now for
the market to grow at a rate of about 25-35% to 500-550 million
units. Market growth during the second half of the year is
expected to be stronger than the first.

Nokia's preliminary market estimates indicate a year-on-year rise
of about 50% in the global mobile phone subscriber base to
approximately 715 million users at the end of the year 2000,
representing global penetration of about 12%. Our estimate for the
global subscriber base at the end of 1999 is about 480 million.
Nokia forecasts subscription growth to remain strong and the
mobile phone user base to break through one billion in the first
half of 2002.


JORMA OLLILA, CHAIRMAN AND CEO

Nokia's financial figures for the fourth quarter and the full year
2000 are nothing short of extraordinary. They confirm that we
executed our business plans in accordance with our stated forecast,
and, building on this strong base, we look forward to the transition
towards next generation technologies. We entered the year in a
leadership role and again proved that we could convert that
leadership into faster-than-market growth.

In the networks business, we increased our market share both in
GSM, signing our 100th customer, and in the new GPRS core
networks, where more than one half of all commercial launches were
based on Nokia solutions. This strong performance now puts us on
par with our nearest rival in both GSM base stations and in GPRS,
and I am extremely pleased with this development.

In third generation networks, our confidence that we are moving
toward a winning global role was heightened. Nokia was chosen as a
supplier for 3G networks by 13 operators, including leading European
operators, a new entry in Japan and AWS in the US. The AWS deal not
only accelerates the availability of third-generation services in
North America, it reshapes the wireless landscape there.

Backed by our co-operation partners, we are well equipped for 3G
network volume rollouts. We believe strongly in 3G, and we are
therefore taking a proactive, but prudent, approach to financing,
supporting our core businesses with lending in sound business cases.

In mobile phones, we comfortably achieved all our full-year targets
and advanced our number one market share position by following our
previously outlined strategies. Over the last three years, Nokia's
mobile phone sales volume growth has consistently exceeded market
growth. In 2000, we grew faster than the market during every quarter
and in every region.

The anticipated shift in the mobile phone industry is now taking
place and market growth is gradually settling into less
exceptional levels than we have seen in the near past.
Strengthening our leading market position in a profitable way will
continue to be a top priority. In 2000, we introduced 19 new
products. This year, we expect a similar or greater number of
product roll-outs, including new GPRS models, new WAP models and
several new CDMA models.

Nokia's GPRS handsets are scheduled to start shipping in the third
quarter 2001, with volumes rising into the millions in the fourth
quarter. Our first 3G terminals are expected to follow with
similar timing and similar volume expectations one year later. Our
ability to continuously renew and improve our product mix while
effectively managing demand/supply are key to achieving our
financial and market share growth targets.

In 2000, Nokia launched a new initiative to develop technical
architecture for the mobile Internet. This architecture will help
create a user-friendly mobile Internet experience for anyone on any
network, with any type of access. Secure and reliable network
solutions for corporates is also a growth area for us. Last year,
Nokia Internet Communications established itself as a market leader
in security infrastructure and software applications for corporate
customers. Nokia Internet Communications expects revenues for 2001
to exceed EUR 500 million, while targeted annual revenue growth is
at least 50%. The unit is expected to reach the breakeven point
during 2002.

I would like to express my sincere gratitude to the whole Nokia team  
for the excellent results last year. Thanks to their dedication, 
excellence and flexibility, we continue to see a consistent upward 
trend in the amount of value each employee is able to create, and we 
will work to further increase efficiency. Nokia's transformation into 
an effective e-business company will also greatly enhance efficiency, 
with substantially all revenues by 2003 targeted to be generated via 
e-mode.

Looking at our leading position and our results, I am very pleased
with our performance in the fourth quarter and the full year. I
feel confident that with our solid financial position, leading
products, flexible operations and strong Nokia brand, we are well
prepared for the future.

REVIEW BY THE BOARD OF DIRECTORS FOR 2000
(The below review by the Board of Directors forms part of the
financial statements for 2000.)

Nokia's net sales in 2000 increased by 54% compared to 1999 and
totaled EUR 30 376 million (EUR 19 772 million in 1999). 
Sales in Nokia Networks grew by 36% to EUR 7 714 million 
(EUR 5 673 million) and in Nokia Mobile Phones by 66% to 
EUR 21 887 million (EUR 13 182 million). Sales increased 
in Nokia Ventures Organization by 106% to EUR 854 million 
(EUR 415 million).

Operating profit (IAS, International Accounting Standards) grew by
48% and totaled EUR 5 776 million (EUR 3 908 million in 1999).
Operating margin was 19.0% (19.8% in 1999). Operating profit in
Nokia Networks increased to EUR 1 358 million (EUR 1 082 million)
and in Nokia Mobile Phones to EUR 4 879 million (EUR 3 099
million). Operating margin in Nokia Networks was 17.6% (19.1% in
1999) while the operating margin in Nokia Mobile Phones was 22.3%
(23.5% in 1999). Nokia Ventures Organization showed an operating
loss of EUR 387 million (loss of EUR 175 million). Common Group
Expenses totaled EUR 74 million (EUR 98 million).

Financial income totaled EUR 102 million (financial expenses of
EUR 58 million 1999). Profit before tax and minority interests
totaled EUR 5 862 million (EUR 3 845 million). Taxes amounted to
EUR 1 784 million (EUR 1 189 million). Net profit was EUR 3 938
million (EUR 2 577 million).

Earnings per share was EUR 0.84 (basic) and EUR 0.82 (diluted)
compared to EUR 0.56 (basic) and EUR 0.54 (diluted) in 1999.

At December 31, 2000, net debt to equity ratio (gearing) was -26%
(-41% at the end of 1999). Total capital expenditures in 2000
amounted to EUR 1 580 million (EUR 1 358 million).

Global Reach

In 2000, Europe accounted for 52% of Nokia's net sales (53% in
1999), the Americas 25% (25% in 1999) and Asia-Pacific 23% (22% in
1999). The 10 largest markets were the US, China, the UK, Germany,
Italy, France, Brazil, the Philippines, Australia and Spain,
together representing 64% of total sales.

Research and development

In 2000, Nokia continued to invest in its worldwide research and
development network and cooperation. At year-end, Nokia had 19 304
R&D employees, approximately 30% of Nokia's total personnel.
Investments in research and development increased by 47% (by 53%
in 1999) and totaled EUR 2 584 million (EUR 1 755 million in
1999), representing 8.5% of net sales (8.9% of net sales in 1999).

People

In 2000, Nokia increased its personnel by a total of 7 864 new
employees (12 367 in 1999), excluding the businesses sold in 2000.
The average number of personnel for 2000 was 58 708 (51 177 for
1999). At the end of 2000, Nokia employed 60 289 people worldwide
(55 260 at year-end 1999).

Nokia continued to develop motivating and performance-based
compensation and benefit programs for its employees. In 2000, the
50% rise in earnings per share resulted in the maximum 5% bonus
under the global Nokia Connecting People Bonus plan. During the
year, the number of personnel participating in the Nokia global
stock-option plans increased significantly to more than 16,000.

Acquisitions and divestments

In accordance with its strategy, Nokia continued to focus on its
core competence areas and increased its use of contract
manufacturing. In January, Nokia divested its display
manufacturing operations and sold Nokia Display Products' branded
business. Nokia Network's cabling and electromechanical
manufacturing units were sold to one of our contract
manufacturers.

In February, Nokia acquired Network Alchemy, the California-based
leading provider of IP clustering solutions. This acquisition
provides a platform from which Nokia will build highly scalable
and secure solutions required for the large number of on-line
transactions envisioned in a mobile world.

In August, Nokia expanded its broadband solutions portfolio by
acquiring DiscoveryCom, a leading US provider of loop management
solutions for broadband DSL services. The acquisition will
strengthen Nokia's loop management and related DSL competencies.

In October, Nokia increased its ownership of the Brazilian handset
manufacturing joint venture NG Industrial (NGI) from 51% to 100%
by acquiring all the shares of NGI held by Gradiente Telecom S.A.
for USD 415 million. Obtaining full ownership of NGI was an
important step for Nokia to increase its presence in Brazil.

In December, Nokia strengthened its ability to offer world-class
network security solutions to the small office sector by agreeing
to commence a tender offer to buy all outstanding shares of Ramp
Networks, a California-based provider of purpose built Internet
security appliances specifically designed for small office
applications. The tender offer closed on January 19, 2001, with
over 90% of the shares purchased.

Joint Initiatives

The Location Interoperability Forum (LIF) has reached the
milestone of 100 support members. The aim of LIF is to produce a
common industry view on positioning technologies and system
solutions to meet emerging service requirements such as
information retrieval and mobile commerce applications. Nokia is a
founding member of the LIF initiative.

Symbian announced in November the release of it first fully
integrated software platform for next generation mobile phones.
The Nokia 9210 is the world's first product based on the Symbian
Platform v6.0. Symbian also announced that it has licensed the
Nokia WAP browser technology to be incorporated in its platform.

In December, the SyncML initiative released its 1.0 specification
for universal data synchronization of both mobile and local data.
SyncML is an initiative sponsored by Nokia and other leading
companies and supported by over 500 industry parties.

In November, Nokia and Hewlett-Packard agreed to develop Internet-
based platform solutions for the proliferation of mobile e-
services. An initial application, available in 2001, would enable
a person using a Nokia mobile phone to command an HP printer to
print from the Web. These solutions are based on open industry
standards such as Infrared, vCard and Bluetooth.


NOKIA NETWORKS

The year 2000 was characterized by continuing GSM expansion, as
operators responded to growth in the GSM subscriber base by
investing in network capacity. In addition to delivering GSM
network expansion to its existing customers, Nokia won 13 new
customers in 2000, and its total number of GSM customers rose to
100.

Operators invested in wireless data capabilities, such as GPRS, a
forerunner for 3G. GPRS shipments accelerated during the year, and
Nokia has now delivered well over 50 GPRS networks to leading
operators in Europe, the US and Asia. By the end of the year, 15
operators had launched GPRS services based on Nokia solutions,
accounting for more than half of all commercial GPRS launches
worldwide.

Nokia signed its first contracts for 3G networks and had by the
end of the year been chosen as a 3G supplier by a total of 13
operators in Asia, the US and Europe.

Nokia combined its mobile Internet infrastructure solutions into
one division to increase focus on critical points in the mobile
Internet value system. Product launches included Nokia mPlatform,
an open platform to implement mobile Internet services, and Nokia
mPosition Solution, an end-to-end solution for location-based
services in mobile networks. Nokia also entered into cooperation
with several companies operating in the mobile Internet area.

Underscoring the company's commitment to being one of the first to
deliver fully 3GPP-compliant WCDMA networks in 2001, Nokia
continued to introduce industry-first radio access solutions that
dramatically reduce costs and improve capacity. Launches included
a new family of WCDMA base stations and the Nokia Common Radio
Resource Management solution, which will increase radio network
capacity and simplify the operation of future multi-standard
mobile networks. Nokia also introduced the Nokia 3G All-IP Core,
an IPv6 based concept for 3G core networks, and 3G functionality
for mobile switches.

Nokia expects its first 3G deliveries in the first half of 2001,
with volume deliveries commencing in the second half. During 2000,
Nokia prepared for volume rollouts of 3G networks both in
production and network implementation. This included verifying the
capacity of the Nokia supplier network, signing agreements with a
significant number of suppliers and subcontractors, and signing
cooperation agreements for turnkey implementation of 3G and GSM
with four major companies; ABB, Bovis Lend Lease, MKI and Wireless
Facilities Inc.

The TETRA standard continued to expand from Europe to Asia, most
notably China. During 2000, Nokia developed and delivered the
world's first integrated TETRA voice and IP Packet Data system
that considerably boosts TETRA's data capabilities. In October,
Nokia launched the new 800 MHz TETRA system and had won the first
order for this new system by the end of the year.

In the growing broadband solutions market, Nokia continued to
build its position, signing contracts with 17 new customers.
Commercial shipments began of the Nokia MW1122, which combines
wireless in-premise connectivity and high-speed Internet access
for the residential gateway market.


NOKIA MOBILE PHONES

Growth in Nokia's mobile phone sales continued to exceed
market growth in 2000 as a whole and in every quarter.
Overall, Nokia sold 128.4 million mobile phones in 2000,
representing 64% year-on-year growth. In 1999, Nokia sold
78.5 million units worldwide.

According to Nokia's preliminary estimates, global mobile
phone market volume in 2000 was approximately 405 million
units, representing 45% growth on the previous year. Market
volume for 1999 was estimated at approximately 280 million
units. Replacement sales account for an estimated 40% of the
405 million total volume estimate for 2000. This share is
expected to rise to around 50% of total volume in 2001.

Growth in market volume in 2000 continued to be highest in
Europe at slightly above 50%, compared with approximately 45%
in the Americas and 35% in Asia Pacific. Nokia's sales volume
growth was clearly higher than market volume growth in all
regions, most notably Asia Pacific and Europe.

Consequently, Nokia continued to strengthen its market
leadership in 2000, leading to a total global market share of
approximately 32% for the full year 2000. Nokia continues to
target mobile phone sales volume growth that exceeds
projected market growth and thus further increase its global
leadership.

During 2000, Nokia made 19 new product announcements including its
first Bluetooth solution, the Nokia Connectivity Pack for the
Nokia 6210.

NOKIA VENTURES ORGANIZATION

Nokia invited industry players from around the world to take part
in a global initiative to develop architecture for mobile Internet
technology. The initiative, Mobile Internet Technical
Architecture, is the first of its kind to focus specifically on
the mobile Internet, and is aimed at bringing a richer Mobile
Internet experience to users in the next generation of products
and services.

In 2000, Nokia Internet Communications established itself as a
market leader in security infrastructure for corporate customers
and strengthened its offering with several new elements. Nokia and
Internet Security Systems (ISS) announced RealSecure for Nokia,
the first enterprise-class intrusion detection appliance. In
addition, through its relationship with McAfee, Network Associates
Inc., the company announced the WebShield for Nokia, a unique anti-
virus appliance dedicated to stopping viruses at the network
perimeter.

Nokia Home Communications introduced its first Home Gateway
product, intended for the Americas, the Nokia MW 1122, and
launched the Media Terminal, a new, powerful infotainment center
for the home with a software platform based on open standards and
technologies. Nokia Multimedia Terminals signed its first two
agreements to deliver digital multimedia terminals and related
services in China. Nokia also launched a new multimedia terminal,
the Mediamaster 9450, designed to meet the rapidly increasing
digital free-to-air terminal demand in the Central European and
Middle Eastern markets. At the end of the year, the company merged
Nokia Multimedia Terminals into Nokia Home Communications.

Nokia launched its Mobile Display Appliances venture focusing on
the development of Internet-enabled mobile display devices. This
venture uses Nokia's expertise in mobility, IP technologies and
high performance displays to offer consumers convenient and
innovative access to the Internet.

Nokia Venture Partners continued to invest in emerging mobile
Internet businesses, increasing Nokia's portfolio to 25 companies.
The new USD 500 million fund launched in December 2000 offers
Nokia early insight into new technologies and developments in the
Internet economy. In addition to the Americas and Europe, the fund
will focus on the fast-growing mobile Internet segments in Israel
and the Asia Pacific region.

CHANGES IN SHARE CAPITAL

In 2000, Nokia's share capital increased by EUR 1 927 669.44 as a
result of the issue of 32 127 824 new shares upon exercise of
warrants issued to key personnel in 1995 and 1997. Nokia's share
capital was also increased in March by EUR 366 704.40, when 
6 111 740 shares (split adjusted) were issued to finance 
the acquisition of Network Alchemy. The shares were issued for 
a subscription price of EUR 49.9131 per share, the average 
market price of Nokia ADSs on the New York Stock Exchange for the 
15 business-day period before the closing of the transaction 
(split adjusted). In addition, Nokia's share capital was increased 
in September by EUR 234 557.70 when 3 909 295 shares were issued to 
finance the acquisition of DiscoveryCom. The shares were issued for a
subscription price of EUR 45.9805 per share, the average market
price of Nokia ADSs on the New York Stock Exchange for the five
business-day period before the signing of the transaction. Due to
the limited number of shares issued in these transactions, the
issuances did not have any significant effect on the relative
holdings of the other shareholders of the company nor on the
voting powers among them.

The total number of shares at December 31, 2000 was 4 696 212 723.
As a result of the new share issues, Nokia received a total of EUR
556 325 962.58 in additional shareholders' equity in 2000. At
December 31, 2000, Nokia's share capital was EUR 281 772 763.38.

Nokia repurchased a total of 2 532 000 shares (split adjusted)
over the Helsinki Exchanges at an aggregate price of EUR 126.8
million during the period from February 21 to March 2. The price
paid was determined on the basis of the market price at the time
of repurchase. The shares were repurchased to be used for the
purposes specified in the authorization held by the Board. The
aggregate par value of the shares purchased was EUR 151 920,
representing 0.05% of the share capital of the company and the
total voting rights. On July 1, a total of 61 036 Nokia shares
were returned to Nokia pursuant to agreements made in connection
with business acquisitions effected before the said date. The
aggregate par value of these shares, which were received without
consideration, was EUR 3 662.16 and they represented 0.001% of the
share capital of the company and the total voting rights. These
new holdings did not have any significant effect on the relative
holdings of the other shareholders of the company nor on the
voting powers among them.

On December 31, 2000, Nokia and its subsidiary companies owned 
4 079 425 Nokia shares. The shares had an aggregate nominal value of
EUR 244 765.50, representing 0.09% of the share capital of the
company and the total voting rights.

OUTLOOK

Nokia's objective is to take a leading role in creating
communications products and services that enrich the daily lives
of people and enable enterprises to prosper. The company strives
to keep a clear focus on human needs, outstanding brand, secure
and reliable products and services, and excellence in execution.
Based on its resources, including technological know-how, market
position, and continuous building of competencies, Nokia is 
well-positioned to achieve its future goals.

DIVIDEND

The Nokia Board of Directors will propose to the Annual General
Meeting on March 21, 2001, that a dividend of EUR 0.28 per share 
(EUR 0.20 per share for 1999, split adjusted) be paid.


MORE TO FOLLOW