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Nokia establishes two new R&D units
January 14, 1998

- major expansion in Hungary

Nokia will establish two new Research and Development (R&D) units in Budapest, Hungary. Nokia Telecommunications will establish a unit concentrating on the development of Nokia's Mobile Switching software and applications. Nokia's corporate research unit, Nokia Research Center, (NRC) will also open a new R&D unit in Budapest.


Nokia intends significant expansion and investment in Hungary, with the new Mobile Switching R&D unit employing approximately 300 software systems and telecommunications specialists by 1999. Hiring is already underway and selected recruits will receive advanced training in Nokia's global R&D sites for the development of relevant competencies. The unit will be headed by Mr. Keith Sutton who has been responsible for launching Nokia's Mobile Switching R&D unit in Dallas, Texas.

The Nokia Research Center unit will work in close co-operation with the NRC sites in Helsinki and Tampere, Finland and Boston, USA, as well as other Nokia R&D sites globally. The unit will focus on the development of telecom-related software such as network planning tools and mobile Internet services and will employ 30 people by the year 2000. The unit will be headed by Mr. Gabor Elo.

"Nokia is heavily concentrating on the further development of GSM switching, including the evolution towards 3rd generation mobile network (UMTS) switching. Our Mobile services Switching Centre (MSC) and Home Location Register have proven to be very competitive in terms of both feature-richness and capacity. The Budapest R&D centre will have a significant role in their further development", states Mr. Sauli Salo, Vice President, Mobile Switching, Nokia Telecommunications.

"We are constantly looking at opportunities to strengthen our R&D competence in key technology areas," continues Mr Matti Alahuhta, President, Nokia Telecommunications. "The Budapest site will be part of Nokia's global R&D network. Hungary is a country that provides high-quality education in computer science and technology."

Nokia offers total GSM systems, with everything from digital mobile phones to transmission to switching. Nokia holds the world's number one position in GSM 1800 networks and is one of the top two suppliers in GSM 900 networks. To date, Nokia GSM technology has been supplied or ordered by 65 operators in 34 countries.

Nokia Group currently has R&D activities in 10 countries. Its corporate research unit, Nokia Research Center, interacts closely with all Nokia business units. It focuses on GSM enhancement and third-generation cellular technology, broadband communications, as well as multimedia. In 1996, the Nokia Group's R&D expenditure totalled FIM 3.5 billion (USD 0.8 billion).

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 36,000 people in 45 countries. Nokia's shares are listed in Helsinki, New York, London, Stockholm, Frankfurt and Paris.

Further information:

Mrs Tuula Putkinen, Communications Manager
Nokia Telecommunications
Tel. (Int.) + 358 9 5113 8541
Fax (Int.) + 358 9 5113 8200






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