Interim Results

Nokia Corporation
19 July 2001


NOKIA              STOCK EXCHANGE RELEASE       July 19, 2001

Nokia's second quarter margins above 15% with
pro forma pre-tax profit of nearly EUR 1.2 billion

Sales growth of 5% and strong positive net operating cash flow show
operational efficiency while adjusting to market slowdown

- Second-quarter net sales were EUR 7 346 million, showing
growth of 5% compared with the previous year. In Nokia Networks, net
sales declined 2% and in Nokia Mobile Phones net sales increased 10%
- Pro forma pre-tax profit was EUR 1 166 million
- Pro forma operating margin for Nokia was 15.5%, Nokia Networks 15.8% 
and Nokia Mobile Phones 17.9%
- Pro forma earnings per share (diluted) were EUR 0.17 (0.21),
on a reported basis EPS (diluted) were EUR 0.12 (0.20)


                                           PRO FORMA
                            (excludes goodwill amortization and 
                             non-recurring items)
EUR Million           2Q/2001 2Q/2000  Change 1H/2001 1H/2000    Full 
                                         (%)                     Year
                                                                 2000
Net sales               7 346   6 980     +5   15 353  13 517  30 376
Nokia Networks          1 896   1 925     -2    3 918   3 427   7 714
Nokia Mobile Phones     5 349   4 883    +10   11 179   9 722  21 887
Nokia Ventures            134     193    -31      303     404     854
Organization
Operating profit        1 137   1 445    -21    2 577   2 780   5 861
Nokia Networks            300     357    -16      664     637   1 400
Nokia Mobile Phones       960   1 222    -21    2 167   2 384   4 897
Nokia Ventures            -92     -85            -194    -144    -307
Organization
Common Group Expenses     -31     -49             -60     -97    -129
Profit before tax and   1 166   1 457    -20    2 651   2 809   5 947
minority interests
Net profit                830     984    -16    1 876   1 894   4 027
EPS, EUR                                                              
Basic                    0.18    0.21    -14     0.40    0.41    0.86
Diluted                  0.17    0.21    -19     0.39    0.40    0.84


Jorma Ollila, Nokia Chairman and CEO, said 'Backed by our ability to
manage working capital and control costs, we were able to retain our
leading market position while sustaining good profitability and
positive cash flow. This kind of resourcefulness is a product of the
long-term commitment from all parts of our organization to improve
efficiency and flexibility.

'We believe firmly in the long-term opportunities of the mobile
communications industry. With market growth expected to pick up again
next year, we are in a unique position to build on our strengths. I am
confident that our solid financial base, proven excellence in
execution, focussed R&D and strong brand will continue to translate
very well into profitable future growth.'


NOKIA IN APRIL-JUNE 2001 (PRO FORMA)
(International Accounting Standards, IAS, pro forma, comparisons given
to the second quarter 2000 results)

Nokia's net sales increased by 5% to EUR 7 346 million (EUR 6 980
million). Sales of Nokia Networks decreased by 2% to EUR 1 896 million
(EUR 1 925 million), reflecting significant revenue declines in Europe
substantially offset by growth in Asia Pacific and flat revenues in
the Americas. Sales of Nokia Mobile Phones grew by 10% to EUR 5 349
million (EUR 4 883 million), with strong growth in Europe and growth
in Asia Pacific partially offset by a sales decline in the Americas.
Sales of Nokia Ventures Organization decreased by 31% and totaled 
EUR 134 million (EUR 193 million).

Pro forma operating profit decreased by 21% to EUR 1 137 million (EUR
1 445 million), representing a pro forma operating margin of 15.5%
(20.7%). Pro forma operating profit in Nokia Networks decreased by 16%
to EUR 300 million (EUR 357 million), representing a pro forma
operating margin of 15.8% (18.5%). Pro forma operating profit in Nokia
Mobile Phones decreased by 21% to EUR 960 million (EUR 1 222 million),
representing a pro forma operating margin of 17.9% (25.0%). Nokia
Ventures Organization reported a pro forma operating loss of EUR 92
million (pro forma operating loss of
EUR 85 million). Common Group Expenses, which comprises Nokia Head
Office and Nokia Research Center, totaled EUR 31 million (EUR 49
million).

Financial income totaled EUR 27 million (EUR 13 million). Profit
before tax and minority interests was EUR 1 166 million (EUR 1 457
million). Net profit totaled EUR 830 million (EUR 984 million). Pro
forma earnings per share decreased to EUR 0.18 (basic) and to EUR 0.17
(diluted) compared with EUR 0.21 (basic) and EUR 0.21 (diluted).

Pro forma adjustments for this quarter reflected the exclusion of
goodwill amortization in the amount of EUR 71 million (EUR 33 million
in the second quarter 2000) and non-recurring charges totaling
EUR 210 million. These charges consisted of

- EUR 65 million at Nokia Networks relating to its broadband
operations, offset in part by a EUR 24 million gain from the disposal
of certain production operations in the UK and Finland
- EUR 35 million at Nokia Mobile Phones related to the refocus
of production in the US and Germany
-EUR 134 million related to the realignment at Nokia Internet
Communications, including a EUR 54 million impairment of goodwill
         
All reported figures can be found on pages 6 and 7 and in the tables
at the end of this report.

During the second quarter, the company continued to take steps to
improve operational efficiency and overall competitiveness in line
with current market conditions. Actions included additional
outsourcing and increased internal staff rotation, as well as some
personnel decreases.

To increase customer orientation and efficiency, Nokia reorganized its
Networks Customer Operations and Broadband Systems divisions, as well
as Nokia Internet Communications. Nokia Mobile Phones is refocusing
its mobile phone production processes in Germany and the US. At the
end of June Nokia had 58 675 employees, showing a decline of
approximately 1 600 employees during the first half of the year,
mostly resulting from outsourcing. Announced realignments are expected
to result in a decrease of an additional 1 500 employees during 2001.

BUSINESS ENVIRONMENT AND FORECASTS

Slower growth in the second quarter was largely due to weaker-than-
expected market conditions, driven by economic uncertainty, the
ongoing technology transition and the current less aggressive market
penetration strategies of operators.

Nokia estimates that the global mobile infrastructure market declined
during the second quarter compared with the second quarter 2000 and
compared with the first quarter 2001. Markets were adversely affected
by reduced investments by operators in their existing networks due to
unfavorable economic conditions, weakened financial positions at
certain operators and the anticipated shift to next generation
technologies. These factors were particularly pronounced in the
Americas and Europe during the second quarter, while the Asia Pacific
infrastructure market, notably China, continued to grow. Nokia
anticipates little if any change in these market trends for the
remainder of 2001.

Based on Nokia's preliminary market estimates, the overall mobile
phone market in the second quarter was unchanged compared with the
same period a year ago and declined slightly from the first quarter to
about 90 million units sold worldwide. The decline was most evident in
Europe and the Americas, while Asia Pacific continued to show year-on-
year volume growth. Due to the slowdown, Nokia estimates the global
mobile phone market in 2001 to show very little or modest volume
growth compared with 2000, when about 405 million phones were sold.

Current economic and industry uncertainties continue to limit our
visibility for the remainder of 2001. In the third quarter 2001, Nokia
expects revenue growth to range from flat to 5%, and pro forma
operating margins for the Nokia Group to be in the mid-teens. Nokia
expects third quarter 2001 pro forma EPS (diluted) to range between
EUR 0.14 and EUR 0.16, then improve on that in the fourth quarter. Net
operating cash flow is expected to continue to be positive both for
the third quarter and the balance of the year. The lack of visibility
does not allow us to give specific growth guidance for 
the fourth quarter 2001.

Nokia Networks continued to outperform the market despite lower-than-
expected revenues in the second quarter. The company believes that its
share of the overall mobile infrastructure market had increased
slightly to approximately 20% at the end of the second quarter 2001.
During the remainder of 2001, Nokia Networks will continue to deliver
GSM/GPRS networks and start shipping equipment for the third
generation 3G. However, due to the timing of 3G sales recognition,
revenues resulting from these shipments and ongoing deliveries will
only be reflected starting mid-2002.

In the second quarter, Nokia believes it has held its mobile phone
market share at the over 35% level achieved in the first quarter 2001
despite agressive discounting by some competitors. In addition, Nokia
has continued to gain market share both during the second quarter and
the first half 2001 as compared with the respective periods in 2000.
The company believes that its mobile phone sales will continue to
exceed yearly market growth, resulting in a higher full-year market
share in 2001 than in 2000.

While Nokia Internet Communications grew slightly in the second
quarter, revenue growth was affected by the slowdown in information
technology spending. As a result, the unit is not expected to reach
its revenue target of EUR 500 million for this year. However, Nokia
remains committed to building leadership in the corporate network
security market and believes Nokia Internet Communications is well
positioned to reach break-even during 2002.

Economic conditions in general are expected to improve next year. As
investments in new technologies accelerate, the company expects to see
revenue growth pick up again and return to the level of 25-35% at some
time during 2002.

JORMA OLLILA, CHAIRMAN AND CEO

Towards the end of the quarter, we saw a rapid deterioration in
overall market conditions. While they were much worse than expected,
we intensified our efforts to counter the sudden changes without
compromising our profitability, cash flow and investments for the
future. The first half produced a net operating cash flow of EUR 2.5
billion, leaving us with a strong net cash position at the end of
June.

Backed by our ability to manage working capital and control costs, we
were able to retain our leading market position while sustaining good
profitability and positive cash flow. This kind of resourcefulness is
a product of the long-term commitment from all parts of our
organization to improve efficiency and flexibility.

In mobile networks, our position has developed favorably to bring us
additional market share. Based on our estimates we believe we are now
the world's largest GSM base station supplier. In 3G, we are
proceeding as planned with test networks already being delivered in
preparation for volume shipments commencing October 2001. Under
applicable accounting rules related to revenue recognition, the impact
of these shipments on top-line growth is not expected to be seen until
the middle of 2002. Our financial base is strong and we continue to
take a prudent approach to providing vendor financing.

In mobile phones, we launched 14 new products during the first six
months of 2001 and we have a strong product line-up for the second
half. Plans are on track to commence deliveries of our first GPRS
phone in the third quarter and this should start to impact earnings
towards the fourth quarter. Although we continue to maintain our
stated 40% global market share target for the long term, given the
discounting by some of our competitors and the difficult market
conditions, we are placing more emphasis on sustaining healthy
profitability.

Our commitment to the Symbian-based operating system was reaffirmed
during the second quarter with deliveries of the new Nokia
communicator, our first Symbian product. In a sense, a lot of what we
envisage for the future is previewed in the new communicator series
with its high-speed data access, color screen, wireless imaging and
both WAP and HTML connection to the Internet.

We believe firmly in the long-term opportunities of the mobile
communications industry. With market growth expected to pick up again
next year, we are in a unique position to build on our strengths. I am
confident that our solid financial base, proven excellence in
execution, focussed R&D and strong brand will continue to translate
very well into profitable future growth.

NOKIA NETWORKS

During the second quarter, Nokia Networks revenues declined slightly
compared with the second quarter, 2000. Sales continued to grow in
Asia Pacific, but were flat in the Americas and decreased
significantly in Europe.

Nokia is on track in 3G network development. Since April, the company
has announced 10 new deals with the following operators: Cable &
Wireless Optus in Australia, Hutchison 3G in the UK, Orange in the UK
and Switzerland, Itineris in France, MobilCom in Germany, Wind in
Italy, Radiolinja in Finland, Viag Interkom in Germany, and Omnitel
Vodaphone in Italy. The company also commenced deliveries of its first
3G test network deliveries, in preparation for volume deliveries in
October.

In addition, Nokia Networks launched its unique Multi-Operator Radio
Access Network for 3G network sharing, one of the company's several
network-sharing solutions. The solution will enable operators to
exploit the benefits that network sharing brings in the early phase of
3G build-outs.

The USD 680 million contract with Brazil's largest operator, Telemar,
to supply the country's first GSM/GPRS solution was a landmark deal.

In the broadband business Nokia signed a DSL agreement with HeiBei in
China and launched the new Nokia MW1324 DSL gateway for homes.

NOKIA MOBILE PHONES

During this challenging period of limited market growth, Nokia Mobile
Phones saw year-on-year revenues grow by 10%. Sales were strong in
Europe with growth in Asia Pacific, but a sales decline in the
Americas.

In addition to two GPRS models, the Nokia 8310 and Nokia 6310,
launched earlier this year, Nokia announced its first GPRS phone for
the Americas market, the Nokia 8390 (GSM/GPRS 1900), which is expected
to be available by the end of 2001.

Shipments of Nokia's first Symbian-based product, the Nokia 9210
Communicator (GSM 900/1800) started in June. Nokia also launched the
Nokia 9290 Communicator (GSM 1900) for the Americas, which is expected
to be available during the first half of 2002.

The premium category CDMA phones for the Korean market, the Nokia 8887
(CDMA 800) and the Nokia 8877 (CDMA 1700) also started shipping during
the second quarter, as well as two CDMA phones for the Americas, the
tri-mode Nokia 3285 and the dual-mode Nokia 3280.

Nokia started shipping its first Bluetooth product, the Nokia
Connectivity Pack, an accessory for the Nokia 6210 mobile phone that
enables data connection between the phone and the PC. Nokia's second
Bluetooth-enabled product, the Nokia 6310, has Bluetooth technology
integrated into the phone and is expected to become available in the
fourth quarter.

Nokia affirmed its commitment to the fast deployment of Java
technology. The company intends to deliver more than 50 million mobile
terminals supporting the Java platform for all segments of the
consumer market by the end of 2002 and then double that by the end of
2003.

Club Nokia, the company's mobile service platform for Nokia phone
owners, raised its profile significantly during the quarter. The Club,
which brings new applications and services to the already expanding
mobile services market, is anticipated to offer new business
opportunities to its operator and service provider partners as well as
become a revenue source for Nokia. The company expects to have signed
Club Nokia cooperation agreements with 50 operators by the end of this
year.


NOKIA VENTURES ORGANIZATION

In April, Nokia, together with two industry peers, announced the
establishment of Wireless Village, the Mobile Instant Messaging and
Presence (IMPS) initiative, to define and promote a set of universal
specifications for mobile instant messaging and presence services and
create a community of supporters. This new industry forum has an
important role in Nokia's Mobile Internet Technical Architecture, and
complements the work of other industry consortia.

Nokia Internet Communications announced its co-developed Firewall
Flows, designed to dramatically increase the performance of Check
Point's FireWall-1 (TM) operating on Nokia's IP Network Security
Appliances. Working with Internet Security Systems, the company also
introduced the latest version of RealSecure (TM) for Nokia, providing
the most sophisticated network Intrusion Detection System on the
market today.

Nokia Home Communications launched an open source developer program.
Ostdev.net is dedicated to the support of developers in the open
source community as well as the promotion of collaborative development
of the Open Standards Terminal (OST), Nokia's platform for home
entertainment applications. In addition, Nokia Home Communications
signed an agreement with Loki Software to make its Linux games
available on the Nokia Media Terminal and announced the availability
of RealPlayerr on the Nokia Media Terminal.


NOKIA IN APRIL-JUNE 2001 REPORTED
(International Accounting Standards, IAS, comparisons given to the
second quarter 2000 results)

Nokia's net sales increased by 5% to EUR 7 346 million (EUR 6 980
million). Sales of Nokia Networks decreased by 2% to EUR 1 896 million
(EUR 1 925 million), reflecting significant revenue declines in Europe
substantially offset by growth in Asia Pacific and flat revenues in
the Americas. Sales of Nokia Mobile Phones grew by 10% to EUR 5 349
million (EUR 4 883 million), with strong growth in Europe and growth
in Asia Pacific partially offset by a sales decline in the Americas.
Sales of Nokia Ventures Organization decreased by 31% and totaled 
EUR 134 million (EUR 193 million).

Operating profit decreased by 39% to EUR 856 million (EUR 1 412
million), representing an operating margin of 11.7% (20.2%). Operating
profit in Nokia Networks decreased by 31% to EUR 240 million (EUR 348
million), representing an operating margin of 12.7% (18.1%). Operating
profit in Nokia Mobile Phones decreased by 26% to EUR 902 million 
(EUR 1 221 million), representing an operating margin of 
16.9% (25.0%). Nokia Ventures Organization reported an operating loss 
of EUR 255 million (operating loss of EUR 108 million). 
Common Group Expenses, which comprises Nokia Head Office and 
Nokia Research Center, totaled EUR 31 million (EUR 49 million).

Financial income totaled EUR 27 million (EUR 13 million). Profit
before tax and minority interests was EUR 885 million (EUR 1 424
million). Net profit totaled EUR 589 million (EUR 951 million).
Earnings per share decreased to EUR 0.13 (basic) and to EUR 0.12
(diluted) compared with EUR 0.20 (basic) and EUR 0.20 (diluted).


NOKIA IN FIRST HALF 2001 REPORTED
(International Accounting Standards, IAS, comparisons given to the
first half 2000 results)

Nokia's net sales increased by 14% to EUR 15 353 million (EUR 13 517
million). Sales of Nokia Networks increased by 14% to EUR 3 918
million (EUR 3 427 million). Sales of Nokia Mobile Phones grew by 15%
to EUR 11 179 million (EUR 9 722 million). Sales of Nokia Ventures
Organization decreased by 25% and totaled EUR 303 million (EUR 404
million).

Operating profit decreased by 18% to EUR 2 225 million (EUR 2 728
million), representing an operating margin of 14.5% (20.2%). Operating
profit in Nokia Networks decreased by 6% to EUR 585 million (EUR 621
million), representing an operating margin of 14.9% (18.1%). Operating
profit in Nokia Mobile Phones decreased by 12% to EUR 2 085 million
(EUR 2 382 million), representing an operating margin of 18.7%
(24.5%). Nokia Ventures Organization reported an operating loss of
EUR 385 million (operating loss of EUR 178 million). Common Group
Expenses, which comprises Nokia Head Office and Nokia Research Center,
totaled EUR 60 million (EUR 97 million).

Financial income totaled EUR 74 million (EUR 33 million). Profit
before tax and minority interests was EUR 2 299 million (EUR 2 757
million). Net profit totaled EUR 1 564 million (EUR 1 842 million).
Earnings per share decreased to EUR 0.33 (basic) and to EUR 0.33
(diluted) compared with EUR 0.39 (basic) and EUR 0.39 (diluted).

At June 30, 2001, net debt-to-equity ratio (gearing) was -25% (-26% at
the end of 2000). During the January to June period 2001, capital
expenditures amounted to EUR 625 million (EUR 772 million).

At the end of June, outstanding long-term receivables totaled EUR 969
million, while guarantees given on behalf of third parties totaled 
EUR 150 million. In addition, Nokia had financial commitments based on
customer orders totaling EUR 3.9 billion at the end of June. Of the
total committed and outstanding vendor financing, EUR 3.6 billion
relates to 3G networks.

The average number of employees during the quarter was 59 602. At June
30, Nokia employed a total of 58 675 people (60 166 people at June 30,
2000).

Effective April 17, a total of 68 950 shares held by Nokia Corporation
were cancelled pursuant to the shareholders' resolution taken at the
General Meeting on March 21. As a result of the cancellation, the
share capital was reduced by the aggregate par value of the shares
cancelled, EUR 4 137, corresponding to less than 0.01% of the share
capital of the company and the total voting rights. The cancellation
did not reduce the shareholders' equity, and it did not have any
significant effect on the relative holdings of the other shareholders
of the company or on the voting powers among them. On June 30, the
Group companies owned  3 800 118 Nokia shares. The shares had an
aggregate par value of EUR 228 007.08 representing 0.08% of the
company and the total voting rights.

At June 30, the total number of issued shares was 4 699 241 205 and
the share capital was EUR 281 954 472.30.

The merger of the Finnish subsidiaries into Nokia Corporation will
become effective on October 1.

Tables to follow.


CONSOLIDATED PROFIT AND LOSS ACCOUNT, IAS, EUR million
(unaudited)                                                           
                               Pro forma Pro forma  Reported  Reported
                                   4-6/01   4-6/00    4-6/01    4-6/00
                                                                      
Net sales                           7 346    6 980     7 346     6 980
Cost of sales 1)                   -4 556   -4 203    -4 627    -4 203
Research and development             -794     -677      -794      -677
expenses
Selling, general and                 -859     -655      -998      -655
administrative expenses 2)
Amortization of goodwill                -        -       -71       -33
                                                                      
Operating profit                    1 137    1 445       856     1 412
Share of results of associated          2       -1         2        -1
companies
Financial income and expenses          27       13        27        13
                                                                      
Profit before tax and               1 166    1 457       885     1 424
minority interests
                                                                      
Tax                                  -303     -438      -263      -438
Minority interests                    -33      -35       -33       -35
                                                                      
Net profit                            830      984       589       951
                                                                      
Earnings per share, EUR                                               
Net profit                                                            
Basic                                0.18     0.21      0.13      0.20
Diluted                              0.17     0.21      0.12      0.20
                                                                      
Average number of shares                                              
(1 000 shares)                                                        
Basic                             4694648  4673061   4694648   4673061
Diluted                           4788099  4795234   4788099   4795234
                                                                      
Depreciation and amortization,                           360       227
total
                                                                      
Non-recurring items                                                   
1) Non-recurring charges of EUR 71 million
2) Non-recurring charges of EUR 139 million, including EUR 54 million 
impairment of goodwill, and EUR 24 million gain from the disposal of 
certain production operations.
                                                                      

CONSOLIDATED PROFIT AND LOSS ACCOUNT, IAS, EUR million
(unaudited)                                                          
                             Pro forma  Pro forma  Reported  Reported
                                 1-6/01    1-6/00    1-6/01    1-6/00
                                                                     
Net sales                        15 353    13 517    15 353    13 517
Cost of sales 1)                 -9 584    -8 215    -9 655    -8 215
Research and development         -1 560    -1 207    -1 560    -1 207
expenses
Selling, general and             -1 632    -1 315    -1 771    -1 315
administrative expenses 2)
Amortization of goodwill              -         -      -142       -52
                                                                     
Operating profit                  2 577     2 780     2 225     2 728
Share of results of                   -        -4         -        -4
associated companies
Financial income and expenses        74        33        74        33
                                                                     
Profit before tax and             2 651     2 809     2 299     2 757
minority interests
                                                                     
Tax                                -721      -854      -681      -854
Minority interests                  -54       -61       -54       -61
                                                                     
Net profit                        1 876     1 894     1 564     1 842
                                                                     
                                                                     
Earnings per share, EUR                                              
Net profit                                                           
Basic                              0.40      0.41      0.33      0.39
Diluted                            0.39      0.40      0.33      0.39
                                                                     
Average number of shares                                             
(1 000 shares)                                                       
Basic                           4693933   4663503   4693933   4663503
Diluted                         4788474   4776569   4788474   4776569
                                                                     
                                                                     
Depreciation and amortization,                          673       407
total
                                                                     
Non-recurring items                                                  
1) Non-recurring charges of EUR 71 million
2) Non-recurring charges of EUR 139 million, including EUR 54 million 
impairment of goodwill, and EUR 24 million gain from the disposal 
of certain production operations.
                                                                     

CONSOLIDATED PROFIT AND LOSS ACCOUNT, IAS, EUR million
(unaudited)                                                     
                                           Pro forma    Reported
                                             1-12/00     1-12/00
                                                                
Net sales                                     30 376      30 376
Cost of sales                                -19 072     -19 072
Research and development expenses             -2 584      -2 584
Selling, general and administrative           -2 859      -2 804
expenses 1)
Amortization of goodwill                           -        -140
                                                                
Operating profit                               5 861       5 776
Share of results of associated companies         -16         -16
Financial income and expenses                    102         102
                                                                
Profit before tax and minority interests       5 947       5 862
                                                                
Tax                                           -1 780      -1 784
Minority interests                              -140        -140
                                                                
Net profit                                     4 027       3 938
                                                                
Earnings per share, EUR                                         
Net profit                                                      
Basic                                           0.86        0.84
Diluted                                         0.84        0.82
                                                                
Average number of shares                                        
(1 000 shares)                                                  
Basic                                      4 673 162   4 673 162
Diluted                                    4 792 980   4 792 980
                                                                
                                                                
Depreciation and amortization, total                       1 009
                                                                
Non-recurring items                                             
1) Change in accounting method related to pensions, 
EUR 55 million positive item
                                                                

NET SALES  BY BUSINESS GROUP, EUR million
(unaudited)                                                          
                      4-6/2001  4-6/2000  1-6/2001 1-6/2000 1-12/2000
                        
Nokia Networks           1 896     1 925     3 918    3 427     7 714
Nokia Mobile Phones      5 349     4 883    11 179    9 722    21 887
Nokia Ventures             134       193       303      404       854
Organization
Inter-business group       -33       -21       -47      -36       -79
eliminations
                                                                     
Nokia Group              7 346     6 980    15 353   13 517    30 376
                                                                     
OPERATING PROFIT BY BUSINESS GROUP, EUR million
(unaudited)                                                          
                                                                     
Pro forma             4-6/2001  4-6/2000  1-6/2001 1-6/2000 1-12/2000
                        
Nokia Networks             300       357       664      637     1 400
Nokia Mobile Phones        960     1 222     2 167    2 384     4 897
Nokia Ventures             -92       -85      -194     -144      -307
Organization
Common Group Expenses      -31       -49       -60      -97      -129
                                                                     
Nokia Group              1 137     1 445     2 577    2 780     5 861
                                                                     
                                                                     
Goodwill amortization 4-6/2001  4-6/2000  1-6/2001 1-6/2000 1-12/2000
                        
Nokia Networks             -19        -9       -38      -16       -42
Nokia Mobile Phones        -23        -1       -47       -2       -18
Nokia Ventures             -29       -23       -57      -34       -80
Organization
Common Group Expenses        -         -         -        -         -
                                                                     
Total                      -71       -33      -142      -52      -140
                                                                     

Non-recurring items   4-6/2001  4-6/2000  1-6/2001 1-6/2000 1-12/2000
                        
Nokia Networks             -41         -       -41        -         -
Nokia Mobile Phones        -35         -       -35        -         -
Nokia Ventures            -134         -      -134        -         -
Organization
Common Group Expenses        -         -         -        -        55
                                                                     
Total                     -210         -      -210        -        55
                                                                     
                                                                     
Reported              4-6/2001  4-6/2000  1-6/2001 1-6/2000 1-12/2000
                        
Nokia Networks             240       348       585      621     1 358
Nokia Mobile Phones        902     1 221     2 085    2 382     4 879
Nokia Ventures            -255      -108      -385     -178      -387
Organization
Common Group Expenses      -31       -49       -60      -97       -74
                                                                     
Nokia Group                856     1 412     2 225    2 728     5 776

CONSOLIDATED BALANCE SHEET, IAS, EUR million (unaudited)
                                     
                                 30.6.2001 30.6.2000 31.12.2000
ASSETS                                                            
                                                                  
Fixed assets and other non-current assets                               
Intangible assets                    2 086     1 260      1 994
Property, plant and equipment        2 715     2 359      2 732
Investments in associated companies     62        88         61
Investments in other companies         101       161        150
Deferred tax assets                    504       413        401
Long-term loan receivables             969       620        808
Other assets                           362       148        242
                                     6 799     5 049      6 388

Current assets                                                    
Inventories                          1 897     2 418      2 263
Receivables                          6 747     5 604      7 056
Short-term investments               2 674     2 605      2 774
Bank and cash                        1 501     1 021      1 409
                                    12 819    11 648     13 502
                                                                  
Total assets                        19 618    16 697     19 890
                                                                  
SHAREHOLDERS' EQUITY AND LIABILITIES                              
                                                                  
Shareholders' equity                                              
Share capital                          282       281        282
Share issue premium                  1 704     1 427      1 695
Treasury shares                       -150      -151       -157
Equity adjustments                     266       270        347
Retained earnings                    8 893     6 559      8 641
                                    10 995     8 386     10 808
                                                                  
Minority interests                     218       173        177
                                                                  
Long-term liabilities                                             
Long-term interest bearing liabilities 161       266        173
Deferred tax liabilities                62        83         69
Other long-term liabilities             65        72         69
                                       288       421        311
                                       
Current liabilities                                               
Short-term borrowings                1 187       819      1 069
Current portion of long-term debt       47         1         47
Accounts payable                     1 966     2 509      2 814
Accrued expenses                     3 002     2 955      2 860
Provisions                           1 915     1 433      1 804
                                     8 117     7 717      8 594
Total shareholders' equity and      19 618    16 697     19 890
liabilities
Interest-bearing liabilities         1 395     1 086      1 289
Shareholders' equity per share, EUR   2.34      1.79       2.30
Number of shares (1000 shares) *   4695441   4676847    4692133

* Shares owned by Group companies are excluded

CONSOLIDATED CASH FLOW STATEMENT, IAS, EUR million
(unaudited)                                                        
                                       1-6/2001  1-6/2000 1-12/2000
Cash flow from operating activities                                
Net profit                                1 564     1 842     3 938
Adjustments, total                        1 393     1 276     2 805
Net profit before change in               2 957     3 118     6 743
net working capital
Change in net working capital               246      -796    -1 377
Cash generated from operations            3 203     2 322     5 366
Interest received                           146       118       255
Interest paid                               -45       -47      -115
Other financial income and expenses         -11      -251      -454
Income taxes paid                          -780      -538    -1 543
                                                                   
Net cash from operating activities        2 513     1 604     3 509
                                                                   
Cash flow from investing activities                                
Acquisition of Group companies,                      
net of acquired cash                       -143         -      -400
Investments in other shares                 -93      -112      -111
Additions in capitalized                   -194      -208      -393
development costs
Long-term loans receivable from            -213         -      -776
customers
Capital expenditures                       -625      -770    -1 580
Proceeds from disposal of Group companies,                                 
net of disposed cash                          -         6         4
Proceeds from sale of other shares           98        31        75
Proceeds from sale of fixed assets          206        69       221
Dividends received                           27        48        51
                                                                   
Net cash used in investing activities      -937      -936    -2 909
                                                                   
Cash flow from financing activities                                
Proceeds from issuance of share capital      12        44        72
Treasury shares acquired                      -         -      -160
Capital investment by minority shareholders   2         3         7
Long-term liabilities,                       -8        18       -82
proceeds from/payment of
Short-term borrowings,                     -282       -33       133
proceeds from/payment of
Long-term receivables,                      -36      -556         -
proceeds from/payment of
Short-term receivables,                      45       239       378
proceeds from/payment of
Dividends paid                           -1 339      -957    -1 004
                                                                   
Net cash used in financing activities    -1 606    -1 242      -656
                                                                   
Foreign exchange impact on cash              22        41        80
                                                                   
Net increase in cash and cash equivalents    -8      -533        24

Cash and cash equivalents                 4 183     4 159     4 159
at beginning of period
Cash and cash equivalents                 4 175     3 626     4 183
at end of period
                                                                   
Dividends                                                          
Dividends to Nokia's shareholders, EUR 1 314 million and 
EUR 931 million, were recorded as liabilities at the end 
of the first quarter in 2001 and 2000, respectively. 
Dividends were paid in April and had an impact on cash flow 
and gearing in the second quarter.
                                      
CONSOLIDATED STATEMENT  OF CHANGES IN SHAREHOLDERS' EQUITY, 
EUR million
(unaudited)                                        Fair                   
                                                   value
                                           Trans-  and    Re-
                            Share   Trea-  lation  other  tained      
                    Share   issue   sury   Diffe-  reser- Ear-   
                    capital premium shares rences  ves    nings  Total
Balance at          279     1 079   -24    243            5 801  7 378
December 31, 1999
Share issue           2       348                                  350
Acquisition of                     -127                           -127
treasury shares
Dividend                                                   -931   -931
Translation                                 27                      27
differences
Change in accounting                                       -206   -206
policy
Other increase/                                              53     53
decrease, net
Net profit                                                1 842  1 842
Balance at          281     1 427  -151    270            6 559  8 386
June 30, 2000
Balance at          282     1 695  -157    347     -      8 641 10 808
December 31, 2000
Share issue                    11                                   11
Disposal of treasury                  7                              7
shares
Stock options issued            4                                    4
on acquisitions
Stock options                  -6                                   -6     
exercised
related to                                                     
acquisitions
Dividend                                                 -1 314 -1 314
Translation                                 33                      33
differences
Effect of change in                                -56             -56
accounting principle (IAS 39)
Cash flow hedges and                               -58             -58
fair value adjustments
Other increase/                                               2      2
decrease, net
Net profit                                                1 564  1 564
Balance at          282     1 704  -150    380    -114    8 893 10 995
June 30, 2001
                                                                      
       
COMMITMENTS AND CONTINGENCIES, EUR million
(unaudited)               
                                          GROUP       
                                 30.6.01  30.6.00 31.12.00
                                                      
Collateral for own  commitments                                               
  
Mortgages                             12       12       12
Assets pledged                         4        3        4
                                                                      
Collateral given on behalf of 
other companies
Assets pledged                        24        -       23
                                                                      
Contingent liabilities on behalf of 
Group companies
Other guarantees                     662      576      656
                                                                      
Contingent liabilities on behalf of 
other companies
Guarantees for loans                 153      267      298
Other guarantees                                1       
                                                                      
Leasing obligations                1 151      840      895
                                                                      
NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS, EUR million 1)
(unaudited)                                                         
                                        30.6.2001 30.6.2000 31.12.2000
                                                        
Foreign exchange forward contracts 2)3)     9 242    10 137     10 497
Currency options bought                     1 723     2 292      2 165
Currency options sold                       1 631     1 914      2 029
Interest rate forward and futures               -         -          -
contracts 2)
Interest rate swaps                            51       250        250
Cash settled equity swaps 4)                  278       372        336
                                                                    
1) The notional amounts of derivatives summarized here do not 
represent amounts exchanged by the parties and, thus are not 
a measure of the exposure of Nokia caused by its use of derivatives.
2) Notional amounts outstanding include positions, which have been
closed off.
3) Notional amount includes contracts used to hedge the net 
investments in foreign subsidiaries.
4) Cash settled equity swaps are used to hedge risks relating to 
incentive programs and investments activities
Closing rate, 1 EUR = 0.855 USD                                     

Change in Accounting Principles
The Group has adopted, beginning January 1, 2001, IAS39, Financial
instruments: recognition and measurement. The impact of the changes 
in policy on opening shareholders' equity is quantified as follows:

Total shareholders' equity at 31 December 2000              10 808
as previously reported                                      

IAS 39 transition adjustments:
Fair value adjustments to available-for-sale debt and           58
equity investments 1)                                                
Transfer of gains and losses on qualifying cash flow          -114
hedging derivatives 2)                                                
Total shareholders' equity at 1 January 2001                10 752

1)Available-for-sale investments in debt and equity securities and
investments in unlisted equity shares are measured at fair value
unless investments are held for trading or originated loans or
unlisted equities cannot be measured reliably.
2)Gains and losses on foreign exchange forward contracts that
are properly designated and are highly effective as cash flow hedges
of highly probable forecast foreign currency cash flows are deferred
in a hedging reserve within equity. Previously, such gains and losses
were reported as deferred income or expenses.

It should be noted that certain statements herein which are not
historical facts, including, without limitation those regarding 1) the
timing of product deliveries; 2) the Company's ability to develop and
implement new products and technologies; 3) expectations regarding
market growth and developments; 4) expectations for growth and
profitability; and 5) statements preceded by 'believes', 'expects',
'anticipates', 'foresees', or similar expressions, are forward-looking
statements. Because such statements involve risks and uncertainties,
actual results may differ materially from the results currently
expected by the Company. Factors that could cause such differences
include, but are not limited to 1) industry conditions, such as the
strength of product demand, the intensity of competition, pricing
pressures, the acceptability of new product introductions such as
Internet-ready phones, the introduction of new products by
competitors, the impact of changes in technology, including the
Company's success in the emerging 3G market, the introduction and
marketing of new products and services by operators, the ability of
the Company to source components from third parties without
interruption and at reasonable prices, demand for vendor financing and
the Company's ability and willingness to provide such financing and to
mitigate the related exposure, and the success and financial condition
of the Company's strategic partners and customers; 2) operating
factors, such as continued success of manufacturing activities and the
achievement of manufacturing efficiencies therein, continued success
of product development and inventory risks due to shifts in market
demand; 3) general economic conditions, such as the rate of economic
growth in the Company's principal geographic markets and in the
wireless telecommunications industry as a whole, and fluctuations in
exchange rates, including in particular the impact of the exchange
rate between the euro and the US dollar; as well as 4) the risk
factors specified on pages 10 to 16 of the Company's Form 20-F for the
year ended December 31, 2000.

NOKIA
Helsinki, July 19, 2001
For more information:
Lauri Kivinen, Corporate Communications, tel. [phone]
Ulla James, Investor Relations, tel. [phone]
Antti Raikkonen Investor Relations, tel. [phone]

www.nokia.com

Nokia will report its 3Q and 4Q 2001 results on October 19, 2001 and
January 24, 2002.