Studio Press

In the first quarter 2006, the total mobile device volume achieved by our Mobile Phones, Multimedia and Enterprise Solutions business groups was 75.1 million units, representing 40% year-on-year growth and a 10% sequential decline. Overall industry volume for the same period was 215 million units, representing 27% year-on-year growth and a 12% sequential decline, based on our preliminary market estimate.

The following chart sets out Nokia’s mobile device volumes for the periods indicated as well as the year-on-year and sequential growth rates by geographic area.

Based on preliminary market estimates, Nokia’s market share for the first quarter 2006 grew to 35%, compared with 32% in the first quarter 2005. Sequential market share was also up compared with 34% in the fourth quarter 2005. Nokia’s year-on-year market share increase was driven primarily by strong gains in China, North America, Latin America and Asia-Pacific, which more than offset market share declines in Middle East & Africa and in Europe. Sequential market share gains were driven by gains in Latin America, Middle East & Africa and China, partially offset by a market share decline in Europe.

Nokia’s average selling price in the first quarter 2006 was EUR 103, down from EUR 110 in the first quarter 2005, but increased from EUR 99 in the fourth quarter 2005. Nokia’s first quarter 2006 average selling price reflected a lower than expected proportion of lower priced entry-level products, together with an increased proportion of higher-end products in Nokia’s device sales compared with the fourth quarter 2005. Th

Mobile Phones First quarter 2006 net sales grew 30% to EUR 5.9 billion, compared with EUR 4.5 billion in the first quarter 2005, driven by strong industry volumes and our competitive product portfolio. Net sales increased in all regions year on year. Growth was strongest in North America, where our net sales more than doubled.

Mobile Phones operating profit grew 25% to EUR 1 085 million, compared with EUR 869 million in the first quarter 2005, with an operating margin of 18.5% (19.2%). Operating profit growth in the first quarter 2006 was supported by strong net sales. First quarter 2006 operating profit included a EUR 14 million initial restructuring charge related to the planned formation of a new global company comprising the respective CDMA mobile device businesses of Nokia and SANYO Electric Co. Ltd.

Multimedia First quarter 2006 net sales increased 55% to EUR 1.8 billion, compared with EUR 1.1 billion in the first quarter 2005. Net sales increased year on year in all regions except North America. Growth was strongest in China, where our net sales more than doubled, followed by Asia-Pacific, Europe, and Middle East & Africa, particularly driven by sales of the recently launched Nokia N70 multimedia computer. Net sales in North America and Latin America continued to be at a low level.

Multimedia first quarter operating profit grew 108% to EUR 323 million, compared with EUR 155 million in the first quarter 2005, with an operating margin of 18.4% (13.7%). First quarter 2005 operating profit included a EUR 15 million restructuring charge. Profitability in the first quarter 2006 was driven by strong sales in high-end multimedia computers and effective cost management.

Enterprise Solutions First quarter 2006 net sales decreased 39% to EUR 186 million, compared with EUR 307 million in the first quarter 2005. Net sales were down in all regions except China and North America, and were adversely affected by the relative age of the device portfolio.

In the first quarter 2006, Enterprise Solutions had an operating loss of EUR 66 million, compared with an operating loss of EUR 9 million in the first quarter 2005. This was a result of lower net sales and a EUR 8 million restructuring charge primarily related to headcount reductions.