Nokia and KG Telecom Sign Agreement for Expansion and Upgrade of GSM Network in Taiwan.

HELSINKI, Finland--(BUSINESS WIRE)--March 15, 1999--Nokia and KG Telecom, a leading operator in Taiwan, have signed an agreement worth over USD 100 million for the supply of GSM equipment. The expansion also includes delivery of the first delivery of GPRS solution in Asia.

Under this agreement, Nokia will supply GSM network infrastructure equipment and cellular transmission equipment to KG Telecom, including Nokia mobile switching centres, base stations and base station controllers. Nokia will also provide Intelligent Network (IN) solutions, for advanced value-added services throughout Taiwan. In addition, the Nokia Network Management System and a range of customer services will be supplied, covering implementation and technical support.

"Our customers will now benefit from wider network coverage as well as an expanded range of the latest value-added services that are available through the Nokia IN solutions and later through GPRS," says Mr. Jimmy Yau, President & COO, KG Telecom. "This latest investment will allow us to increase capacity and at the same time, incorporate the most advanced cellular technology currently available into our system."

"Nokia is pleased to contribute to the success of the KG Telecom network. The number of mobile subscribers in Taiwan is already over 4 million and we anticipate this figure to at least double by 2001 given the current growth rate," says Kari Ahola, Senior Vice President, South East Asia & Pacific, Nokia Telecommunications. "Nokia's vision of the mobile becoming the preferred phone is being realised. With the increasing demand for advanced voice and data services in GSM networks, Nokia is pleased to support KG Telecom in meeting these consumer needs with this new agreement."

Nokia offers total GSM systems, with everything from digital mobile phones to transmission and switching as well as extensive services and network management solutions for building, efficiently operating and developing these networks. With this co-operation, the number of operators to which Nokia supplies GSM technology increases to 79 operators in 37 countries. Nokia ranks as the world's largest supplier of GSM 1800 networks and one of the two largest in GSM 900.

Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer monitors. In 1998, net sales totaled FIM 79.2 billion (USD 15.7 billion, EUR 13.3 billion). Headquartered in Finland, Nokia is listed on five European Stock Exchanges and on the New York Stock Exchange (NOK.A), has sales in over 130 countries and employs more than 44,000 people worldwide.