Nokia closes EUR 1.5 billion 3G deal with Orange - provides UMTS networks to Orange, France Telecom Group, in France, the UK and Germany

Orange, one of the world's largest mobile operators, owned by France Telecom, has selected Nokia as the major supplier of its advanced 3G networks for Itineris in France and Orange in the UK. At the same time, the 28% Orange-owned MobilCom has chosen Nokia as a supplier for its 3G network in Germany.

The companies have signed Letter of Intent agreements, with a total estimated value of EUR 1.5 billion. These groundbreaking agreements further strengthen Nokia's position as a leading global 3G system supplier.

Under the three-year agreements, Nokia will deliver solutions for mobile core and radio networks. Nokia becomes the radio-access network supplier for the 3G network in the UK and a major radio access network supplier for the 3G network in France. In Germany, Nokia will provide 3G core network and turnkey implementation of the radio-access network, including a full range of professional services and operations support systems. This contract marks Nokia's 23rd turnkey delivery, making it the world leader in turnkey network implementation.

The agreements will enable Orange to harness the power of mobility and the Internet, and build on its existing business to rapidly address new markets with 3rd Generation high-speed multimedia services.

Deliveries for the build up of trial 3G mobile networks will start soon. Volume deliveries for commercial 3G mobile networks will begin during the second half of this year.

To support the introduction of mobile networks and multimedia services through these agreements, Nokia will provide a bridge-financing package for the development of the network, with an estimated value of over EUR2 billion.

"Orange is a pacesetter in the telecommunications industry and we have already taken the lead in the development of the mobile Internet market in Europe. By choosing Nokia as a technology partner for 3G we can smoothly integrate 3G equipment within our networks to deliver a unique experience for our wirefree subscribers," said Didier Quillot, CEO, Orange France.

"Celebrating our ten-year relationship with Orange in the UK, we are delighted to be able to support Orange's drive towards 3G service creation in these key markets within Europe. With the combined strengths of Nokia's delivery capability and technology innovation, we will be able to provide an unmatched, coherent, industry -leading 3G solution for Europe and the world," said Ukko Lappalainen, Vice President, Nokia Networks.

These agreements were based on the global framework agreement with Orange that Nokia announced last November for the supply of full 3G network solutions, including Nokia's unique mobility core and radio-access technology and services to Orange's affiliate networks around the world.

Itineris and Orange UK are 100% owned by France Telecom, which also holds a 28 % stake in MobilCom in Germany.

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