Nokia Q4-07 and Full-Year Results

FOURTH QUARTER 2007 HIGHLIGHTS

- Nokia diluted EPS of EUR 0.47, growing 57% from Q4 2006, excluding special items.

- Nokia operating margin of 15.9%, up sequentially from 14.6% in Q3 2007, excluding special items.

- Nokia operating cash flow of EUR 2.7 billion.

- Nokia device volumes of 133.5 million units, up 20% sequentially and up 27% year on year.

- Estimated industry device volumes of 336 million units, up 17% sequentially and up 16% year on year.

- Nokia estimated device market share of 40%, up from 39% in Q3 2007 and up from 36% in Q4 2006.

- Nokia device ASP of EUR 83, up from EUR 82 in Q3 2007.

- Total device gross and operating margins increased significantly sequentially and year on year.

- Several key devices started shipping in volume across the product range including: Nokia 1200/1208, Nokia 2630, Nokia 5310, Nokia 6500 and Nokia N95 8GB.

- Nokia Siemens Networks net sales increased 25% sequentially.

- Nokia Siemens Networks operating margin, excluding special items, was 1.4%, and was 4.3% excluding special items and Purchase Price Accounting related items.

- Nokia Siemens Networks continued to be on track to deliver the targeted annual EUR 2 billion cost synergy target, as previously announced.

"Nokia's excellent fourth quarter contributed to a year of high growth and increased profitability for the company, while our industry leading product portfolio drove our device business to an estimated 40% market share in the fourth quarter. At the same time we again increased our quarterly device margins, allowing Nokia to continue to invest for innovation and growth.

It was a year of important strategic initiatives by Nokia, with Nokia Siemens Networks starting operations, our internet services effort taking shape around Ovi, and the announcement of the pending acquisition of NAVTEQ. Facing a market that remains intensely competitive, we are continuing to improve our leading device portfolio as well as execution at Nokia Siemens Networks. With this we believe Nokia is well positioned for growth in 2008."

Mobile devices

The combined mobile device volume of our Mobile Phones, Multimedia and Enterprise Solutions business groups for the fourth quarter 2007 was a record 133.5 million units, up 20% sequentially and 27% year on year. Overall industry volumes for the fourth quarter 2007 reached an estimated 336 million units, up 17% sequentially and 16% year on year.

In converged devices, according to Nokia estimates, the total industry volume reached approximately 40.1 million units for the fourth quarter 2007, compared to an estimated 22.1 million units in the fourth quarter 2006. Nokia's own converged device volumes for the fourth quarter 2007 grew to 18.8 million units, compared to 11.1 million units in the fourth quarter 2006. Nokia shipped well over 11 million Nokia Nseries devices and over 2 million Nokia Eseries devices during the fourth quarter 2007.

Source: Nokia Press Release