Mid Quarter Update

Nokia Corporation
11 September 2001



Nokia on track to reach third quarter profit guidance on slightly 
lower sales

Nokia today provided a mid-quarter update on the company's
business outlook for the third quarter, 2001. The company expects
to reach its third quarter profit estimate made on July 19.

Nokia continues to maintain market leadership without compromising
profitability even in today's turbulent market conditions. Based
on developments during the first two months of the quarter, third
quarter pro forma operating margin for the Nokia Group is expected
to be in the mid-teens, and pro forma EPS (diluted) for the third
quarter to be within the earlier communicated range of 
EUR 0.14-0.16. However, Nokia expects revenue for the third quarter 
to be about 5% lower than the third quarter last year, compared with
earlier expectations of 0 to 5% year-on-year growth.

The company continues to build on leading market positions in its
two main businesses, mobile network infrastructure and mobile
phones, which have been subject to different dynamics during
recent months.

Nokia Mobile Phones revenues are expected to be approximately at
the same level as in the third quarter of 2000. Driven by leading
products, successful execution and strong brand, Nokia Mobile
Phones has been able to maintain healthy margins even in the
seasonally weaker third quarter. Demand is showing signs of
picking up in the US, and the Asian market continues to show a
solid performance. During the coming months, Nokia plans to
introduce several new phone models.

On the infrastructure side, the ongoing technology transition from
mobile voice to mobile data together with the economic instability
have increased uncertainty, as some operators are reassessing the
timing of their GSM network investments. This is expected to
result in lower year-on-year sales and profitability for Nokia
Networks in the third quarter.

Nokia will report its third quarter earnings on October 19, 2001,
and plans to make a mid-quarter update for the fourth quarter on
December 11.

A conference call has been scheduled for today at 16:00 Helsinki
time (9 a.m. in EST). To access the conference call please visit
www.nokia.com/investor.

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.

Further information:
Nokia, Corporate Communications, tel. [phone]
Nokia, Investor Relations, tel. [phone]
www.nokia.com