Nokia Siemens Networks targets improved financi...

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Company sets goal to reduce annualized operating expenses and
production overheads by EUR 500 million by end 2011 compared to end
2009

Nokia Corporation
Stock Exchange Release
November 3, 2009 at 13:00 (CET +1)

Espoo, Finland - Nokia Siemens Networks today announced its plan to
improve financial performance and return to growth. The plan includes
reorganizing the company's business units to better align with
customer needs; extensive operating expense and production overhead
reduction, including a global personnel review; ongoing purchasing
savings; expanded partnering to ensure a full portfolio of
world-class products and services; and potential acquisitions where
assets would add scale to existing product areas or customer
relationships.

"As our customers make purchasing decisions, they want a partner who
engages in issues well beyond a traditional discussion of
technology," said Rajeev Suri, chief executive officer of Nokia
Siemens Networks.  "Business models, innovation, growth and
transformation are now very much front and center when it comes to
the selection of a technology partner - and our planned new structure
will position us well in this changing market."

Reorganization

The Company's five business units are planned to be realigned into
three, each targeting a specific customer focus area. The planned new
business units, which are expected to come into effect on January 1,
2010, are:

- Business Solutions, which will focus on helping customers generate
new revenue and differentiate from the competition by providing a
faster time to market for end-user services; enhancing billing and
charging capability; automating and simplifying processes; addressing
the challenges of convergence; and tapping into rich subscriber data
to deliver a unique customer experience.  Jürgen Walter, currently
head of the company's Converged Core business unit, will assume
leadership of the Business Solutions organization.

- Network Systems, which will focus on providing both fixed and
mobile network infrastructure, including the company's innovative
Flexi base stations, core products, optical transport systems, and
broadband access equipment.  Marc Rouanne, currently head of the
company's Radio Access business unit, will assume leadership of the
Network Systems organization.

- Global Services, which will focus on helping customers improve
operational efficiency through outsourcing of their non-core
activities; supporting and managing their networks with robust
customer care offerings; and ensuring fast and cost-effective
implementation of new networks and network upgrades. Ashish
Chowdhary, currently head of the company's Services business, will
assume leadership of the Global Services organization.

Rouanne and Walter will join the Company's Executive Board, effective
January 1, 2010.  Chowdhary is already a member of the Executive
Board and will remain so in his new role.

Cost reductions

Despite having fully achieved the original merger integration savings
objectives of Nokia Siemens Networks, changes in the global economy
and competitive environment make further cost reductions necessary.
As a result, Nokia Siemens Networks will target a reduction of
annualized operating expenses and production overheads of EUR 500
million by the end of 2011 compared to the end of 2009.  The company
estimates that total charges associated with these reductions will be
in the range of EUR 550 million over the course of 2010-2011.

The operating expense and production overhead savings are expected to
come from a wide range of areas, including real estate, information
technology, site optimization, strategic workforce rebalancing, and
overall general and administrative expenses.  As part of this effort,
the company will also conduct a global personnel review which may
lead to headcount reductions in the range of about 7-9 percent of its
current approximately 64,000 employees.

Specific country impact may be higher or lower than the now estimated
global 7-9 percent range and the company will only provide further
details related to this intended action when the review and planning
process has progressed and employee representatives have been
involved where required.  As the stability of customer relationships
is a key priority, disruption to key customer-facing sales positions
as a result of this review is expected to be limited.

In addition to the operating expense and production overhead savings,
Nokia Siemens Networks will target an annual reduction in product and
service procurement costs related to cost of goods sold that is
substantially larger than the targeted EUR 500 million in operating
expenses and production overhead reductions.  This targeted reduction
is expected to position the company to meet ongoing customer
requirements for competitive pricing.

Partnerships and acquisitions

Nokia Siemens Networks will seek to further strengthen its business
through partnerships and acquisitions.  The Company already has a
range of partnerships, including with Juniper Networks in the Carrier
Ethernet transport arena.

Nokia Siemens Networks will also pursue acquisitions when assets are
available and the associated purchase price of those assets provides
the appropriate value.  In particular, the Company will target assets
that enhance the scale of existing product and service business lines
and that deepen relationships with key customers.

"We recognize that we are operating in a market where customer needs
are evolving fast," said Mika Vehvilainen, chief operating officer of
Nokia Siemens Networks.  "We see acquisitions and expanded partnering
as important tools to help meet these needs in the fastest, most
efficient way possible."

About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of
telecommunications services. With its focus on innovation and
sustainability, the company provides a complete portfolio of mobile,
fixed and converged network technology, as well as professional
services including consultancy and systems integration, deployment,
maintenance and managed services. It is one of the largest
telecommunications hardware, software and professional services
companies in the world. Operating in 150 countries, its headquarters
are in Espoo, Finland.

Engage in conversation about Nokia Siemens Networks' aim to reinvent
the connected world at 

http://unite.nokiasiemensnetworks.com  and
talk about its news at 

http://blogs.nokiasiemensnetworks.com
Find out if your country is exploiting the full potential of
connectivity at 

http://connectivityscorecard.org

About Nokia
Nokia is a pioneer in mobile telecommunications and the world's
leading maker of mobile devices. Today, we are connecting people in
new and different ways - fusing advanced mobile technology with
personalized services to enable people to stay close to what matters
to them. We also provide comprehensive digital map information
through NAVTEQ; and equipment, solutions and services for
communications networks through Nokia Siemens Networks.

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) our ability to develop and
grow our consumer Internet services business; D) expectations
regarding market developments and structural changes; E) expectations
regarding our mobile device volumes, market share, prices and
margins; F) expectations and targets for our results of operations;
G) the outcome of pending and threatened litigation; H) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results
that we currently expect. Factors that could cause these differences
include, but are not limited to: 1) the deteriorating global economic
conditions and related financial crisis and their impact on us, our
customers and end-users of our products, services and solutions, our
suppliers and collaborative partners; 2) the development of the
mobile and fixed communications industry, as well as the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 3) the intensity of
competition in the mobile and fixed communications industry and our
ability to maintain or improve our market position or respond
successfully to changes in the competitive landscape; 4)
competitiveness of our product, services and solutions portfolio; 5)
our ability to successfully manage costs; 6) exchange rate
fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the
Japanese yen, the Chinese yuan and the UK pound sterling, as well as
certain other
currencies; 7) the success, financial condition and performance of
our suppliers, collaboration partners and customers; 8) our ability
to source sufficient amounts of fully functional components,
sub-assemblies, software and content without interruption and at
acceptable prices; 9) the impact of changes in technology and our
ability to develop or otherwise acquire and timely and successfully
commercialize complex technologies as required by the market; 10) the
occurrence of any actual or even alleged defects or other quality,
safety or security issues in our products, services and solutions;
11) the impact of changes in government policies, trade policies,
laws or regulations or political turmoil in countries where we do
business; 12) our success in collaboration arrangements with others
relating to development of technologies or new products, services and
solutions; 13) our ability to manage efficiently our manufacturing
and logistics, as well as to ensure the quality, safety, security and
timely delivery of our products, services and solutions; 14)
inventory management risks resulting from shifts in market demand;
15) our ability to protect the complex technologies, which we or
others develop or that we license, from claims that we have infringed
third parties' intellectual property rights, as well as our
unrestricted use on commercially acceptable terms of certain
technologies in our products, services and solutions; 16) our ability
to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks
patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property
rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18)
developments under large, multi-year contracts or in relation to
major customers; 19) the management of our customer financing
exposure;  20) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 21) whether, as a result of
investigations into alleged violations of law by some former
employees of Siemens AG ("Siemens"), government authorities or others
take further actions against Siemens and/or its employees that may
involve and affect the carrier-related assets and employees
transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 22) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 23) unfavorable outcome of
litigations; 24) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; as well as the
risk factors specified on pages 11-28 of Nokia's annual report on
Form 20-F for the year ended December 31, 2008 under Item 3D. "Risk
Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual
results to differ materially from those in the forward-looking
statements. Nokia does not undertake any obligation to publicly
update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent
legally required.

Media Enquiries:

Nokia Siemens Networks
Ben Roome
Tel. [phone]
Email: [e-mail]

Finland
Riitta MÃ¥rd
Phone: [phone]
Email: [e-mail]

Germany
Christina Dinne
Tel. [phone]
Email: [e-mail]

Nokia
Communications
Tel. [phone]
Email: [e-mail]

www.nokia.com
www.nokiasiemensnetworks.com


 
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NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP   Espoo 

WKN: 870737; 
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;