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Nokia Corporation Interim report July 17, 2008 at 13.00 (CET +1)

The complete press release with tables is available at http://www.nokia.com/results/results2008Q2e.pdf.

NOKIA SECOND QUARTER 2008 OPERATING RESULTS SUMMARY
Reported & Excluding Special Items1, 2
EUR million	Q2/2008	Q2/2007	YoY Change	Q1/2008	QoQ Change
Net sales - reported	13 151	12 587	4%	12 660	4%
Devices & Services	9 090	9 163	-1%	9 263	-2%
Nokia Siemens Networks	4 067	3 438	18%	3 401	20%

Group operating profit - reported	1 474	2 359	-38%	1 531	-4%
Group operating profit - excluding special items1, 2	1 934	1 393	39%	1 864	4%
Group operating margin - excluding special items1, 2	14.7%	11.1%		14.7%

Devices & Services operating profit - reported	1 565	1 779	-12%	1 883	-17%
D&S operating profit - excluding special items1	1 824	1 779	3%	1 964	-7%
D&S operating margin - excluding special items1	20.1%	19.4%		21.2%

Nokia Siemens Networks operating profit - reported	-47	-1 266		-74
NSN operating profit - excluding special items1, 2	154	-361		-39
NSN operating margin - excluding special items1, 2	3.8%	-10.5%		-1.1%

Group Common Functions - reported	-44	1 846		-278
Group Common Functions - excluding special items1	-44	-25		-61

Net Profit - reported	1 103	2 828	-61%	1 222	-10%
Net Profit - excluding special items1, 2	1 365	1 259	8%	1 451	-6%

EPS, EUR Diluted - reported	0.29	0.72	-60%	0.32	-9%
EPS, EUR Diluted - excluding special items1, 2	0.36	0.32	13%	0.38	-5%

Note 1 to table relating to figures excluding special items:

Q2 2008 special items

- EUR 259 million of charges related to closure of the Bochum site in Germany (impacting Devices & Services operating profit).

- EUR 201 million restructuring charge and other one time items (impacting Nokia Siemens Networks operating profit).

Please see "Q2 2007 special items" of net positive EUR 966 million, and "Q1 2008 special items" of net negative EUR 333 million, on page 11 in this press release for a description of the special items for those quarters.

Note 2 to table relating to Nokia Group operating profit, Nokia Siemens Networks operating profit and Nokia EPS, both reported and excluding special items, and Nokia Group operating margin and Nokia Siemens Networks operating margin, excluding special items:

In addition to the special items, Nokia Siemens Networks reported operating profit in Q2 2008 included EUR 120 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks; Q2 2007 included a total of EUR 297 million of intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from the formation of Nokia Siemens Networks; and Q1 2008 included EUR 120 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks.

EPS excluding special items, intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks was EUR 0.37 in Q2 2008; EUR 0.35 in Q2 2007 (also excluding inventory value adjustments); and EUR 0.39 in Q1 2008.

SECOND QUARTER 2008 HIGHLIGHTS

- Nokia net sales of EUR 13.2 billion, up 4% year on year and up 4% sequentially (up 11% and 7% at constant currency).

- Devices & Services net sales of EUR 9.1 billion, down 1% year on year and down 2% sequentially (up 6% and 1% at constant currency).

- Nokia Siemens Networks net sales of EUR 4.1 billion, up 18% year on year and up 20% sequentially (up 26% and 23% at constant currency).

- Services and software net sales of EUR 119 million, up 42% sequentially.

- Nokia diluted EPS of EUR 0.36, up 13% year on year, excluding special items.

- Nokia operating margin of 14.7%, up from 11.1% in Q2 2007 and flat sequentially, excluding special items.

- Devices & Services operating margin of 20.1%, up from 19.4% in Q2 2007 and down sequentially from 21.2%, excluding special items.

- Nokia Siemens Networks operating margin of 3.8%, excluding special items, and 6.7%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks.

- Nokia operating cash flow of EUR 1.5 billion.

- Estimated industry mobile device volumes of 303 million units, up 15% year on year and up 3% sequentially.

- Nokia mobile device volumes of 122 million units, up 21% year on year and up 6% sequentially.

- Nokia estimated mobile device market share of 40%, up from 38% in Q2 2007 and up from 39% sequentially.

- Nokia mobile device ASP of EUR 74, down sequentially from EUR 79 (approximately 40% of the decline was caused by the impact of exchange rate movements).

OLLI-PEKKA KALLASVUO, NOKIA CEO:

"Nokia delivered increased device market share and strong underlying profitability in the quarter. Looking at the rest of the year, we are optimistic and have had good feedback about the broad range of new products we expect to sell in our device business. In the second quarter we saw good momentum in the early stages of our services and software business, and we believe that the next wave of growth will be driven by devices linked with services. On the infrastructure side, Nokia Siemens Networks delivered a second quarter with good net sales growth and improved profitability."

INDUSTRY AND NOKIA OUTLOOK

- Nokia expects industry mobile device volumes in the third quarter 2008 to be up sequentially.

- Nokia expects its mobile device market share in the third quarter 2008 to be approximately at the same level sequentially.

- Nokia now expects industry mobile device volumes in 2008 to grow 10% or more from the approximately 1.14 billion units Nokia estimated for 2007. This is an update to Nokia's earlier estimation that industry mobile device volumes would grow approximately 10% in 2008.

- Nokia continues to target an increase in its market share in mobile devices in 2008.

- Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2008, compared to 2007.

- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.

- Nokia and Nokia Siemens Networks continued cost synergy target for Nokia Siemens Networks is to achieve substantially all of the EUR 2.0 billion of targeted annual cost synergies by the end of 2008, as previously announced.

OUTLOOK FOR FINANCIAL IMPACT OF NAVTEQ

Nokia expects NAVTEQ to be slightly dilutive to EPS in 2008, approximately neutral in 2009 and accretive thereafter, excluding purchase price accounting related items arising from the NAVTEQ acquisition. On a reported basis, Nokia expects NAVTEQ to be slightly dilutive to EPS in 2008, 2009 and 2010, and accretive thereafter. Nokia currently expects to recognize approximately EUR 2 billion of intangibles related primarily to the navigable map database and customer relationships. We expect these intangibles to be amortized over approximately five years. Net of deferred taxes, we expect the impact on our Consolidated Profit and Loss Account of the purchase price accounting related items arising from the NAVTEQ acquisition to be approximately EUR 250 million on an annual basis.