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Nokia announces the completion of the acquisition of DiscoveryCom - and issues new Nokia shares

Nokia announced its agreement to acquire DiscoveryCom, a leading provider of loop management solutions for broadband DSL services, on August 8, this year. The transaction was subject to customary closing conditions and today Nokia can announce the completion of the DiscoveryCom acquisition, and a resolution by the Board to issue approximately 3.9 million new Nokia shares.

The Board of Directors of Nokia Corporation has resolved to increase the share capital of the Company by
EUR 234,557.70, consisting of 3,909,295 new shares, with the par value of EUR 0.06 each, for the subscription price of EUR 45.9805 per share. The new Nokia shares will be offered for the subscription by the shareholders of DiscoveryCom, Inc. and they are payable with the shares of DiscoveryCom, Inc. The subscription period is August 30 – August 31, 2000. The subscriptions shall be paid no later than August 31, 2000. The new Nokia shares are used to acquire DiscoveryCom, Inc., an Alabama corporation, which purpose constitutes important financial grounds to deviate from the shareholders' pre-emptive rights to subscribe for new shares. The increase in the Nokia share capital was resolved on the basis of the authorization given to the Board of Directors by the Annual General Meeting on March 22, 2000.

The total acquisition price is USD 220 million, and the remaining part thereof is payable in stock options which do not result in an increase of the share capital or total number of shares.

Loop management enables communications service providers to rapidly install and maintain Broadband Digital Subscriber Line (DSL) services for fast Internet access. "The early phase of the integration with DiscoveryCom has proved to be very successful and we have received positive feedback from customers," says Mr. Olli Oittinen, Senior Vice President, Broadband Systems, Nokia Networks. "Our leading position in DSL is further strengthened as DiscoveryCom brings an ideal compliment to Nokia's broadband offering."

DiscoveryCom was founded in 1995 and employed approximately 50 people. It is a technology company involved in the design, manufacture, and distribution of communications products that enable service providers to rapidly install and maintain broadband DSL services. The company offers a successful line of portable broadband test instruments that are used by major telephone companies and service providers worldwide. The new LoopMaster product line automates the qualification, provisioning, and management of local copper telephone circuits used to deliver broadband DSL services to subscribers.

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, broadband and 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 60,000 people.

Further information:

Communications Department,
Nokia Networks
Tel. + 358 9 5113 8193

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