Nokia Expands Mediamaster Production

"Motala is running 24 hours a day, so we needed extra capacity to cope comfortably with incoming orders as more broadcasters gear up for digital TV," explains Heikki Koskinen, president of Nokia Multimedia Network Terminals. "This agreement with SCI means that we are increasing significantly our production capacity for digital multimedia terminals. SCI's global presence is an excellent addition to Nokia's sourcing strategy and gives us more flexibility to support our customers world-wide in the growing digital market."

Olin B. King, chairman of the board and chief executive officer of SCI Systems Inc., comments: "The partnership is an important strategic move to us and one which supports SCI´s diversification plans. We are delighted to be entering into an agreement with Nokia Multimedia Network Terminals and look forward to the success of the venture."

Just last month, Nokia announced the launch of its Mediamaster 9600 S -the world's first digital satellite receiver with Common Interface. The launch followed Nokia's agreement with Telenor Satellite Services in April '97 for the development , manufacture and marketing of Common Interface-based digital receivers for Scandinavia, as well as a major order from Via Digital in Spain in June '97. The market demand for the Nokia Mediamaster is growing due to the fast development of new DVB based services.

Nokia is a pioneer in all areas of digital video broadcasting (DVB): satellite, cable and terrestrial. In 1995, Nokia secured an order for one million digital satellite and cable terminals from German Beta Research. Nokia is already working with terrestrial operator Teracom in Sweden in preparation for launch of digital terrestrial services. The UK and Spain will be next to launch digital terrestrial broadcasts.

Headquartered in Finland, Nokia is a leader in digital technologies including mobile phones, cellular and fixed telecommunications networks, wireless data solutions and multimedia terminals. With sales in approximately 130 countries, net sales totaled FIM 39.3 billion ($8.5 billion) in 1996. Nokia employs more than 34,000 people in 45 countries. Nokia's shares are listed in Helsinki, New York, London, Stockholm, Frankfurt and Paris.

SCI Systems Inc. is the largest global supplier of full-service contract manufacturing to the electronics industry, providing a broad range of engineering, manufacturing and support services to original equipment manufacturers (OEMs) in the computer, communications, medical, defence and entertainment industries. The company's 19,000 employees now operate 24 plants in 10 countries. SCI shares are listed on the New York stock exchange.

For further information please contact:

Heikki Koskinen, President
Nokia Multimedia Network Terminals
tel. +358 9 1807 259

Krister Rapp, Vice President Operations
Nokia Multimedia Network Terminals
tel. +358 9 1807 259

David Rees, Vice President Busines Development, European Division
SCI Systems Inc
tel. +44 1294 221 412