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Nokia Makes Key Management Changes

September 26, 2003

HELSINKI, Finland (AP) _ Nokia, the world’s biggest maker of cell phones, is making key management and organizational changes in its mobile phones business in a move aimed at strengthening its position as the industry leader.

Chief financial officer Olli-Pekka Kallasvuo will head the mobile phones unit, the group’s largest division by sales. The current mobile phone chief, Matti Alahuhta, will become vice president and chief strategy officer.

An American, Rick Simonson, will succeed Kallasvuo as CFO and will also sit on the executive board. He has worked as head of customer finance at Nokia since 2001 and before that was employed by Bank of America.

Nokia also will reduce the number of business units within mobile phone division to four main groups from the current nine. They will be mobile phones, multimedia, networks and enterprise solutions. The changes take effect on Jan. 1.

``Mobility is one of the world’s megatrends with great opportunity,″ the company’s chief executive, Jorma Ollila, said. ``The industry and corporate structures that were established a decade ago at the dawn of mobile communications were very different from what is needed going ahead.″

Ollila said the steps reflected an effort to streamline and keep pace with changes in the industry. The previous organization had been in place since 1993 when sales of cell phones were much lower.

Nokia’s network equipment business is remaining unchanged.

Shares of Nokia were up 1 percent to euro13.35 ($15.34) in trading on the Helsinki Stock Exchange.

Nokia is the world market leader for cell phones, with about 36 percent of all mobile handsets sold, according to Gartner Dataquest. Last year, Nokia claimed a 38 percent market share.

Based in Espoo, just outside the Finnish capital, it has sales in 130 countries with some 53,000 employees.

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On the Net:

Nokia: http://www.nokia.com

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