Hungarian and Finnish Prime Ministers Inaugurate Nokia's "Factory of the Future" in Komárom

Today, Prime Ministers Viktor Orbán, Hungary and Paavo Lipponen, Finland inaugurated Nokia's newest mobile phone factory in Komárom together with Jorma Ollila, Nokia Chairman and CEO.

"In the rapidly growing mobile phone industry, efficient and flexible logistics processes and manufacturing capabilities are an important success factor, and the significance of the new Komárom site within Nokia's global logistics structure is very high. Today in Komárom we are celebrating the opening of Nokia's 10th mobile phone factory", said Jorma Ollila, Nokia Chairman and CEO. "Nokia has always had well established historical ties with Hungary, which is amongst Nokia's key countries today. Thanks to the central geographic location, positive corporate environment and the availability of a well-educated workforce, we have been able to expand our activities here", he added.

Nokia's decision concerning the HUF 25 billion (apprx. EUR 100 million) greenfield investment in Hungary was made in July 1998 on the basis of the growing need for additional mobile phone manufacturing capacity. Hungary and the Komárom region were chosen for the favourable geographic situation, the existing infrastructure and the presence of a well-educated workforce.

The factory was operational in record time. It took only 8 months from the laying of the foundation stone in April 1999 to the production of the first mobile phone in January 2000. The Komárom factory already employs over 500 people.

"The Komárom factory is called 'The Factory of the Future' not only because of the state-of-the-art equipment we use", said Jyrki Jalasto, managing director for Nokia Komárom. "The new, innovative production processes and methods used allow for more flexible and quicker production and help us better serve the needs of our customers."

In Hungary, Nokia is one of the largest investors in the telecommunication sector today. It employs some 1000 people in its factory, offices and research and development units.

Nokia is paving the way to the mobile information society with its innovative products and solutions. The company is the leading mobile phone supplier and a leading supplier of mobile, and broadband IP networks, related services as well as multimedia terminals. In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 56,000 people.

Further information:

Nokia Mobile Phones
Communications
Tel. +358 10 5051

www.nokia.com