Nokia Siemens Networks

Net sales for the division in the first quarter of 2008 were 3.4 billion euros, down 26% compared to the fourth quarter of 2007.

Nokia Siemens Networks had a first quarter operating loss of 74 million euros, with an operating margin of -2.2%.

The operating loss included a 65 million euros gain due to the transfer of Finnish pension liabilities and a restructuring charge of 100 million euros.

The operating margin for the first quarter 2008, excluding these special items, was -1.1%, down from the comparable fourth quarter 2007 operating margin of 1.4%.

Operating profit in the first quarter 2008 included 120 million euros of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks.

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

Outlook

Nokia expects industry mobile device volumes in 2008 to grow approximately 10% from approximately 1.14 billion units Nokia estimates for 2007.

However the Finnish company expects mobile device volumes in the second quarter 2008 to be up slightly sequentially, similar to the market growth in the second quarter 2007, compared to the first quarter 2007.

In addition, Nokia and Nokia Siemens Networks cost synergy target for Nokia Siemens Networks is to achieve substantially all of the 2.0 billion of targeted annual cost synergies by the end of 2008.