NOKIA AND EUROTEL SIGNED USD 200 MILLION FRAME AGREEMENT FOR GSM EXPANSION IN THE CZECH REPUBLIC


In an agreement valued at almost USD 200 million, Nokia and the leading Czech operator EuroTel Praha have signed a three year frame agreement for a GSM 900 network expansion. Nokia will remain as the sole supplier.

Nokia will deliver its high capacity mobile switching centres, base station controllers, base stations and the Nokia Artus Data Communication Server (DaCS) for advanced network services such as Internet access via GSM phones. Nokia will also provide extensive customer services for implementation, operation and optimisation of the system.

"Nokia has been our supplier for NMT network infrastructure since 1991 and we have been co-operating with Nokia for provision of the GSM 900 network since 1996. This frame agreement further deepens the good co-operation and close partnership established during the last seven years," says Mr. Jamie Macdonald, acting Chief Executive Officer, EuroTel Praha.

"We are very happy that Nokia and EuroTel are continuing their co-operation for the development of EuroTel’s network, which will provide a range of comprehensive services to their customers. Subscribers will place heavy demands on the range and quality of EuroTel’s voice and data services both now and in the future. This long term agreement and excellent partnership together with the most competitive customer solutions will grant the market leadership of both companies in the Czech market,” comments Mr. Jukka Honkanen, Managing Director, Nokia Telecommunications, Czech Republic.

EuroTel, the first GSM operator in the Czech Republic, launched its network, supplied by Nokia in July 1996. EuroTel now has more than 450,000 customers. They are also operating a NMT 450i cellular network.

EuroTel Praha Ltd. is a joint venture between SPT TELECOM Inc. (51%) and Atlantic West B.V. (49%). Atlantic West B.V. is jointly owned by Bell Atlantic (NYSE:BEL) and MediaOne International, which is a part of the MediaOne Group (NYSE:UMG).

Nokia offers total GSM systems, with everything from digital mobile phones to transmission and switching. Having supplied GSM technology to 72 operators in 36 countries, Nokia ranks as the world's largest supplier of GSM 1800 networks and one of the two largest in GSM 900.

Nokia is a broad-scope communications company supplying mobile phones, mobile and fixed telecommunications networks, wireless data communications solutions, multimedia terminals and computer monitors. In 1997, net sales totaled FIM 52.6 billion ($9.8 billion). Headquartered in Finland, Nokia is listed on the NYSE (NOK.A), has sales in 130 countries and employs more than 41,000 people worldwide.

Prague, 11.08.1998

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Further information:
Mr Lauri Kivinen
Senior Vice President
Corporate Communications
Tel. (Int.) + 358 9 180 7495
Fax (Int.) + 358 9 17 4358
www.nokia.com

Notes to Editors:
The standard GSM/DCS data services do not adequately support the data communications requirements of modern client-server computer systems in mobile networks. To correct this situation, Nokia started the Artus family of data access products.

Nokia Artus data products are designed to enable optimal data access and support for data services in standard GSM, PSTN, and broadband networks. Nokia Artus Data Communication Server (DaCS) provides fast, direct GSM connections to data networks and corporate local area networks through a V.24 Direct Data Access (DDA) interface from the Nokia DX 200 Mobile Switching Centre.