Nokia to Deliver a GSM 1800 and GPRS Network for Cellcom in Israel; Cellcom to Become Nokia's Newest Customer in GSM and GPRS.

Business Editors, High-Tech Writers

HELSINKI, Finland--(BUSINESS WIRE)--July 15, 2001

Nokia and Cellcom, an affiliate of BellSouth, have signed a contract for the supply of GSM 1800 and GPRS infrastructure for Cellcom's network in Israel.

Under the agreement, Nokia will deliver a complete GSM 1800 / GPRS network, which will enable Cellcom to offer its customers state-of-the-art mobile services and "always-connected" access to mobile data. The deal is subject to Cellcom gaining a GSM 1800 license in the upcoming frequency auction.

The agreement calls for the supply of core and radio-access network equipment for both GSM and GPRS. This includes Nokia GSM mobile switching centres, home location registers, base station controllers and Nokia UltraSite base stations, as well as GPRS core network infrastructure. The Nokia GPRS core includes the Serving GPRS Support Node, the Gateway GPRS Support Node, the Domain Name Server, the Charging Gateway, firewalls and Ethernet switches. Nokia UltraSite base stations answer the increasing demand for higher voice and data traffic in today's mobile networks, as well as the evolution to the Mobile Internet era. An industry-leading product, Nokia UltraSite base stations can support GSM, High Speed Data, GPRS, EDGE and UMTS for 3G technologies.

In addition, the agreement calls for related professional services including the installation, commissioning and integration of the GSM/GPRS network, and a maintenance contract.

"Cellcom, which launched the personal communications revolution in Israel with its market entry in 1994 and has been its leader ever since, will continue to base and upgrade existing networks while developing communications with intermediate and 3rd Generation technology," said Jacob Perry, Cellcom President and CEO. "The shift to the cellular future generation will expand and improve the wide basket of services already available to include new data communication abilities at higher speeds. The partnership with Nokia will enable Cellcom to deploy state-of-the-art technologies via a world-leading GSM/GPRS infrastructure supplier."

The Nokia GPRS solution is fully Internet Protocol (IP) compatible and can support Mobile Internet services such as data transfer, improved WAP services and multimedia messaging. The contracted network is designed for seamless evolution to UMTS, allowing operators to expand their service offering to 3G.

"We are delighted to have the opportunity to work closely with an innovative operator such as Cellcom," said Pentti Kamppinen, Vice President, Customer Operations, Nokia Networks. "Cellcom's long experience in mobile telecommunications, together with Nokia's industry-leading GSM and GPRS technology, will help maintain Cellcom's leading position in the Israeli market and provide the cornerstone for entering successfully into the Mobile Internet services. We are proud of Cellcom choosing our GPRS system for its move into the marketplace of new 'always-connected' services that GPRS enables. The GSM1800/GPRS system will be ready to support EDGE (Enhanced Data Rates for Global Evolution) and will ensure a smooth evolution to the 3G system."

Cellcom is the biggest mobile operator in Israel, serving more than two million TDMA subscribers with nationwide coverage. The company is owned by BellSouth International (34.75%), the Safra group (34.75%), Discount Investments (25%) and other investors (5.5%).

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet, Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.