Nokia, STMicro Team

ESPOO, Finland and GENEVA -- Nokia (NYSE: NOK) and STMicroelectronics (NYSE:STM) today announced theirintention to deepen their collaboration on the licensing and supply ofintegrated circuit designs and modem technologies for 3G and its evolution.The two companies also are negotiating a plan relating to transferring apartof Nokia's Integrated Circuit (IC) operations to STMicroelectronics.

The multifaceted agreement will enable STMicroelectronics to design andmanufacture 3G chipsets based on Nokia's modem technologies, energymanagement and RF (radio frequency) technology and deliver completesolutionsto Nokia and the open market.

At the same time, Nokia and STMicroelectronics are negotiating Nokia'sICoperations transfer plan and accordingly, in order to reorganize and effectthe planned competence transfer Nokia will start the personnel consultationprocess required by local regulations with its personnel representatives.Thetransfer is anticipated to concern approximately 200 Nokia employees inFinland and the UK, and it is estimated to take place during the fourthquarter 2007.

Nokia has also awarded ST a design win of an advanced 3G HSPA((high-speed packet access) chipset supporting high data rates, which wouldbe the first contribution of the acquired IC design operations. This designwin represents ST's first win of a complete 3G chipset.

The collaboration between Nokia and STMicroelectronics is in line withthe renewal of Nokia's chipset strategy. Nokia will continue to develop itsleading-edge modem technology, which includes protocol software and relateddigital design for WCDMA/GSM and its evolution. This modem technology willthen be licensed to chipset manufacturers who will develop and producechipsets for Nokia. These manufacturers will also be able to produce andsellto the open market chipsets based on Nokia's modem technology.

"Nokia's strategy will be to collaborate with its semiconductor partnersfor full chipset solutions," said Niklas Savander, Executive Vice President,Technology Platforms, Nokia. "We have worked with STMicroelectronics formanyyears and the company is a perfect partner for this expanded collaboration."

"We are excited about the possibilities that the intended IC technologytransfer will bring us," said Tommi Uhari, Executive Vice President andGeneral Manager of ST's Mobile, Multimedia & Communications Group. "Theintended IC technology transfer, with the world-class engineering skills andlicensing of Nokia's world-leading 3G modem technologies, will enhance ourrelationship with Nokia and will improve our competitive position."

Nokia Corp. (NYSE: NOK)

STMicroelectronics NV (NYSE: STM)