Nokia completes sale of substantially all of its Devices & Services business to Microsoft

Nokia completes sale of substantially all of its Devices & Services business
to Microsoft

Espoo, Finland, April 25, 2014 (GLOBE NEWSWIRE) -- Nokia today announced that
it has completed the sale of substantially all of its Devices & Services
business to Microsoft.

The transaction, which also includes an agreement to license patents to
Microsoft, was originally announced on September 3, 2013.

As earlier communicated, the transaction was subject to potential purchase
price adjustments. The estimate of the adjustments made for net working
capital and cash earnings was slightly positive for Nokia, and we currently
expect the total transaction price to be slightly higher than the
earlier-announced transaction price of EUR 5.44 billion after the final
adjustments are made based on the verified closing balance sheet.

Additionally, as is customary for transactions of this size, scale and
complexity, Nokia and Microsoft made certain adjustments to the scope of the
assets originally planned to transfer. These adjustments included Nokia's
manufacturing facilities in Chennai in India and Masan in the Republic of
Korea not transferring to Microsoft. These adjustments have no impact on the
material deal terms of the transaction and Nokia will be materially
compensated for any retained liabilities.

In India, our manufacturing facility is subject to an asset freeze by the
Indian tax authorities as a result of ongoing tax proceedings. Consequently,
the facility remains part of Nokia following the closing of the transaction.
Nokia and Microsoft have entered into a service agreement whereby Nokia would
produce mobile devices for Microsoft.

In Korea, Nokia and Microsoft agreed to exclude the Masan facility from the
scope of the transaction. Nokia will now take steps to close the facility,
which employs approximately 200 people.

Amid the uncertainty for our employees in Chennai and because of the planned
closure of our facility in Masan, Nokia plans to offer a program of support,
including financial assistance which would give our employees the chance to
explore opportunities outside Nokia starting from a sound financial base. The
company plans to bring to Chennai and Masan elements of its Bridge program,
which we have made available for employees affected by company changes in
other sites.

The convertible bonds issued by Nokia to Microsoft following the announcement
of the transaction have been redeemed and netted against the deal proceeds by
the amount of principal and accrued interest.

As previously announced, the following Nokia leaders have stepped down from
the Nokia Leadership Team and transferred to Microsoft at closing, effective
April 25, 2014: Stephen Elop, Jo Harlow, Juha Putkiranta, Timo Toikkanen, and
Chris Weber. Until further notice, Nokia's interim governance model announced
on September 3, 2013 is in place.

Nokia plans to cover in further detail aspects of the closing of the
transaction in conjunction with its first quarter 2014 results announcement on
April 29, 2014.

Now that the closing of this transaction has taken place, Nokia is arranging a
Board of Directors meeting for early next week in relation to its strategy
assessment which was originally disclosed on September 3, 2013.

FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its business are exposed to various risks
and uncertainties and certain statements herein that are not historical facts
are forward-looking statements, including, without limitation, those
regarding: A) purchase price adjustments related to the sale by Nokia of
substantially all of Nokia's Devices & Services business, including Smart
Devices and Mobile Phones (referred to below as "Sale of the D&S Business")
pursuant to the Stock and Asset Purchase Agreement, dated as of September 2,
2013, between Nokia and Microsoft International Holdings B.V.; B) expectations
with respect to production facilities; C) expectations, plans or benefits
related to or caused by the Sale of the D&S Business; D) expectations, plans
or benefits related to Nokia's strategies, including plans for Nokia with
respect to its continuing businesses that were not be divested in connection
with the Sale of the D&S Business; E) expectations, plans or benefits related
to changes in leadership and operational structure; F) expectations and
targets regarding our operational priorities, financial performance or
position, results of operations and use of proceeds from the Sale of the D&S
Business; and G) statements preceded by "believe," "expect," "anticipate,"
"foresee," "sees," "target," "estimate," "designed," "aim", "plans,"
"intends," "focus," "will" or similar expressions. 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, including risks and uncertainties that could cause these
differences include, but are not limited to: 1) our ability to effectively and
smoothly implement planned changes to our leadership and operational structure
or maintain an efficient interim governance structure and preserve or hire key
personnel; 2) any negative effect from the implementation of the Sale of the
D&S Business, including our internal reorganization in connection therewith;
3) disruption and dissatisfaction among employees caused by the Sale of the
D&S Business; 4) the amount of the costs, fees, expenses and charges related
to or triggered by the Sale of the D&S Business; 5) any impairments or charges
to carrying values of assets or liabilities related to or triggered by the
Sale of the D&S Business; 6) potential adverse effects on our business,
properties or operations caused by us implementing the Sale of the D&S
Business; 7) the initiation or outcome of any legal proceedings, regulatory
proceedings or enforcement matters that may be instituted against us relating
to the Sale of the D&S Business, as well as the risk factors specified on
pages 12-47 of Nokia's annual report on Form 20-F for the year ended December
31, 2012 under Item 3D. "Risk Factors." and risks outlined in our fourth
quarter and full year 2013 results report available for instance at
www.nokia.com/financials. 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.

About Nokia

Nokia is a technology leader with three strong businesses: NSN, which offers
network infrastructure; HERE, which offers location-based services; and
Advanced Technologies, which is focused on advanced technology development and
licensing. http://company.nokia.com

Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com

http://company.nokia.com

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