The company expects 10% or slightly more handset market growth in 2003 - while anticipating a challenging industry environment in wireless infrastructure to continue

At the company's bi-annual strategy meeting for investors on Tuesday in Irving, Texas, Nokia management reinforced its confidence in the continued growth of the mobile handset industry in
2003. At the same time, the company expects continued challenges in
the wireless infrastructure industry in 2003.

Speaking to investors, Jorma Ollila, Chairman and CEO said, "As
industry growth dynamics change, Nokia is the company best positioned
to capitalize on the opportunities ahead. We see growth potential in
new product categories especially in games, imaging and the
enterprise market in which we can extend our strong brand, technology
prowess and manufacturing scalability. We believe we have gained
global handset market share in 2002, bringing us even closer to our
target of 40%."

Wireless Handset Market
Nokia continues to believe the total market volume for handsets will
reach 400 million units in 2002 and 2003 market volume is expected to
grow 10% or slightly more. Growth in 2003 will be driven by a
combination of subscriber growth and a stabilizing replacement cycle.
The company projects that the mobile subscriber market will grow from
more than 1.1 billion at the end of 2002 to approximately 1.5 billion
in 2005, while the annual share of the replacement market will
continue to grow from the current 50% level.

Currently, slightly more than a quarter of the global subscribers
upgrade their handsets annually, which leads to a replacement cycle
of roughly 2.5 years. This replacement cycle has lengthened over the
last 18 months - but now appears to be stabilizing - providing an
important engine for growth going forward.

Wireless Infrastructure Market
For the full year 2002, Nokia expects the total wireless
infrastructure market to be down approximately 20%, while the
company's addressable market will decline closer to 15%. The outlook
for the market continues to be challenging as operators focus on cash
flow while cutting back on investments. For 2003, Nokia anticipates
that the total market in mobile infrastructure will be down
approximately 10%, while Nokia's addressable market should fair
slightly better with a decrease of roughly 5-10%.

While operator investments have decreased, capacity needs, driven by
increasing network traffic, have grown. Continued take-up of mobile
data services will further increase pressure on existing networks.
The global technologies of GSM, EDGE and WDCMA provide operators with
the smoothest evolution to deliver the capacity needs in the most
cost efficient manner.

Enabling Mobile Technologies
As the market enters into a new phase of advanced features and
services, facilitated by color screens, imaging, MMS (multimedia
message service), and Java, Nokia stands at the forefront with its
expanded breadth of product offerings. In 2002, Nokia has shipped
over 30 new phone models - many of which incorporate these advanced
features.

In 2003, Nokia expects to ship 50-100 million color handsets, with
MMS, Java and browser support. Of these, approximately 10 million
will be based on Nokia's Series 60 user interface. More than 70
operators have already launched MMS services.

OMA and Mobile Software
As the industry makes the transition from voice to value added
services, openness is a critical requirement for growth. Openness
enables the greatest proliferation of services and provides the best
platform for developers. The company stands in strong support of the
continued efforts of the Open Mobile Alliance and its over 300 member
companies. For instance, industry players representing over 60% of
the handset market have already adopted Nokia's Series 60 software
platform, which is quickly becoming the de facto platform for smart
phones.