Ceremony witnessed by Chinese and Finnish Premiers. Deliveries started in the beginning of the year.

At a ceremony today in Helsinki, Finland witnessed by Chinese Premier Mr. Wen Jiabao and Finnish Premier Mr. Matti Vanhanen, Nokia signed agreements with its Chinese customers China Mobile and PTAC valued at over EUR 2 billion for the full year 2006.

The agreements show Nokia’s continued commitment to the Chinese market. To date Nokia has committed over EUR 3.3 billion to investments in China, and continues to invest in manufacturing, sales and R&D in the Chinese market.

“The signing of these two important agreements is a milestone event for Nokia’s operations in China,” said Nokia CEO Olli-Pekka Kallasvuo. “We set up our operations more than 20 years ago with a handful of employees and today we employ over 6700 people in China. It is the single biggest market for Nokia, as well as one of the largest contributors to Nokia’s R&D, manufacturing and innovation.”

The frame agreement with China Mobile relates to the purchase of GSM/GPRS network equipment from Nokia with a value of approximately EUR 580 million during the full year 2006. The agreement with the Chinese national mobile phone distributor PTAC relates to the purchase of mobile devices from Nokia with an estimated value of at least EUR 1.5 billion for the full year 2006.

Nokia’s operations in China include two mobile phone manufacturing facilities, two network manufacturing facilities, and six R&D units focusing on both the Chinese and global markets. On September 1, 2006 Nokia announced that it is expanding its recently established 3G R&D center in Chengdu, Sichuan province.

Nokia’s end-to end network solutions significantly improve rural area coverage and enable new services

Nokia, a leading mobile telecommunications infrastructure supplier, has signed a GSM expansion contract with Yunnan Mobile Communication Co., Ltd. (Yunnan MCC) in China. The contract, valued at approximately USD 63 million, further strengthens Nokia’s leading position in GSM networks and mobile softswitch systems deployment in the China area.

Under the agreement, Nokia supplies Yunnan MCC with GSM/GPRS radio and core network, including the Nokia MetroSite base stations, Nokia MSC Server mobile softswitch and Nokia Media Gateway in the Yunnan Province in the Southwest China. Nokia will also provide services including network planning, implementation and other support services. Deliveries have started and the network will be operational in November.

With the Nokia MSC Server mobile softswitch, Yunnan MCC will be able to provide its customers new services, such as Multi-SIM service, which will help Yunnan MCC to generate more revenue and improve its customer retention.

“Yunnan MCC is committed to building a high-quality GSM network to extend mobile services to more people in the province. Thanks to Nokia’s innovative end-to-end solutions, we are able to improve the coverage in the rural area significantly, bring higher capacity to the network, and new services to our customers,” says Lin Zhenhui, General Manager of Yunnan MCC.

“This year marks the 10-year anniversary of strategic cooperation between Nokia and Yunnan MCC. We are delighted that Nokia solutions have in part enabled the new milestone of 10 million mobile users in the province. We are committed to supporting the operators to explore the potential of GSM networks, generate more revenues and bring new exciting services to the mobile users,” says James Lin, Vice President, Networks, Nokia China.

Nokia has been the main supplier of Yunnan MCC for GSM/GPRS core and radio network since 1996.

Nokia leads the 3GPP compliant mobile softswitch market in China and is a leading GSM network supplier in the Chinese market with over 20 provincial customers and 20 million lines already put into operation.

SK Telecom announced that it had established an MOU for cooperation in the “TD-SCDMA Project”, the first non-Chinese telecom service provider to agree on cooperation with China’s National Development and Reform Commission (NDRC) on development of TD-SCDMA, China’s 3G mobile telecom technology standard.

TD-SCDMA(Time Division-Synchronous CDMA) is a 3G mobile telecom technology standard that has been submitted to the ITU by the Chinese government, and has been acknowledged as a next-generation mobile telecom technology standard by the ITU along with CDMA2000 and WCDMA.

With the establishment of the MOU, SK Telecom and China’s National Development and Reform Commission have agreed on building a cooperative model for joint Korea-China development in the telecommunications industry, for not only TD-SCDMA technology but also beyond 3G technology and 4G, and to make use of the resulting diverse achievements in a direction that adheres to the interests of both parties.

By next year, SK Telecom plans to deploy a TD-SCDMA experimental station in Korea’s Bundang area, make use of the Company’s network deployment and service operation experience to proceed with tests on TD-SCDMA technology and various value added services, enabling the improvement in TD-SCDMA network performance and its commercialization in China.

Also, SK Telecom and China’s National Development and Reform Commission will establish a TD-SCDMA service development center to pursue joint research and development in 3G multimedia services, value added services and platforms.

With the establishment of the MOU for cooperation on TD-SCDMA technology, SK Telecom will make use of its world’s best operation technology and expertise in CDMA, EV-DO, and HSDPA to assist in development of TD-SCDMA related technology, acquire understanding and capability in TD-SCDMA technology, and search for numerous business opportunities in China’s convergence area.

Moreover, through such a working relationship between the two parties, SK Telecom expects its China business, into which SK Telecom has committed a great deal, to gain much momentum with the support of the Chinese government.

Also, SK Telecom and its business partners(handset makers, equipment manufacturers and solutions providers) may develop TD-SCDMA products and services based on the experimental station, resulting in opportunities to enter the China market in IT-related industries as well as diverse economic repercussions.

A personnel from China’s National Development and Reform Commission expressed high expectations about the cooperative relationship, saying, “We will do all we can in providing the necessary support and cooperation so that the project with SK Telecom can be conducted smoothly.”

SK Telecom’s CEO Shin-Bae Kim remarked on the significance of the agreement, saying, “The Ministry of Information and Communication has continuously pursued Korea-China cooperation in the IT industry, and the MOU has been realized with its interest and support. With companies around the world actively seeking entry into China’s telecommunications market, SK Telecom being the first foreign telecom service provider to establish a cooperative relationship with China’s NDRC on TD-SCDMA technology signifies the full recognition of SK Telecom’s technological prowess.”

China’s National Development and Reform Commission is an economic policy department that manages the establishment of China’s macroeconomic policies, management of economic indicators and conduct of large-scale national projects, and is responsible for the approval and licensing of major policy issues.

SK Telecom and China’s National Development and Reform Commission held a ceremony to sign the MOU on TD-SCDMA Project Cooperation on August 29, 3 p.m. at the Lotte Hotel located in Sogong-dong, Seoul, and discussed means of cooperation for development of the telecommunications industry of the two countries. Before signing of the MOU, SK Group Chairman Tae-Won Chey met with China’s National Development and Reform Commission to discuss cooperation for business with China, saying, “We will develop the cooperative relationship between Korea and China in not only mobile telecommunications but other diverse business areas as well.”