Sonera Launches Mobile Payment Pilot in Finland.

Business Editors

HELSINKI, Finland--(BUSINESS WIRE)--March 4, 2002

Sonera (HEX: SRA; NASDAQ: SNRA) today introduced its mobile purchase payment pilot in the Helsinki metropolitan area.

The Sonera Shopper service is a convenient method of payment and a complement to cash and credit cards. Sonera is testing the service between March 4 and August 31, 2002.

Shopper is the result of Sonera's long-term development work for mobile payment that started in the 1990s. In Finland, mobile phones are already being used for a number of everyday transactions, with potential for future growth.

A number of research organizations predict that payment by mobile phone will become more common in the next few years. American market research institution TowerGroup, predicts 118 million users in Europe, 145 million users in Asia, and 22 million users in the US intend to use a mobile phone to pay for small purchases in the next few years.

"Sonera has been a frontrunner in the development of mobile payment, and we believe that this sector has the potential to become a significant business. However, we want to test mobile payment extensively, in cooperation with dealers and consumers, in order to get the best possible starting-point for the actual commercial launch of the service," says Anni Vepsalainen, Senior Vice President, Sonera.

EASY PAYMENT BY MOBILE

Sonera Shopper turns the mobile phone into a payment device. It reduces the need for cash and functions as a complement to credit cards. The service is operator-independent - and only requires a conventional mobile phone and mobile phone subscription. There are presently 31 shops that accept Shopper payments. This spring, Tiimari shops in the metropolitan area will include Shopper as a method of payment, and Pizza Hut and Videofirma Makuuni plan to extend the use of Shopper to all their locations throughout Finland.

The Shopper service allows for payment through Visa and Eurocard, as well as Sonera Shopper accounts. In the pilot, bank cards will be issued by the Finnish credit institution Luottokunta. Customers can also establish a Sonera Shopper account, transferring money in advance. Pilot customers first register for the service to identify themselves and select a method of payment. User identification is based on the subscription number and a personal security code that the customer keys in. The customer receives an ordinary receipt for his payment as well as a text message confirmation.

Payments are either collected on the customer's credit card invoice or debited to his Shopper account.

"The main benefit from the Shopper service is ease of payment. Payment is quicker, the need for cash is reduced and the consumer can be sure he is charged correctly," says Paivi Helanto, Business Development Manager at Sonera. "From now on, mobile payment can be used also by people whose mobile phone bill is paid by their employer."

"We want to gather experiences already in the pilot stage particularly from operation environments that did not previously allow the implementation of credit card payment. With complementing mobile services, credit card payment becomes, at its best, independent of time, place and terminal device," says Ilkka Alarto, Development Manager at Luottokunta. The Shopper service utilizes Luottokunta's Digital Payment Terminal service which is suited for reception of card payments both in conventional distance selling and Internet, mobile and digital TV systems.

For further information, please contact:

Steve Fleischer, VP-IR & Corporate Communications, Sonera Corporation US Tel. [phone] E-mail: [e-mail]

Paivi Helanto, Business Development Manager, Sonera Corporation Tel. [phone] E-mail: [e-mail]

Ilkka Alarto, Development Manager, Luottokunta Tel. [phone] E-mail: [e-mail]

Sonera Shopper images, in electronic format, are found at the address www.sonera.fi/press

BACKGROUND ON SONERA MOBILE PAYMENTS:

Sonera has been developing mobile payment services since the 1990s. In 1997, the company launched the first applications for buying soft drinks by mobile phone from vending machines at Helsinki-Vantaa airport. There are currently some 800 vending machines in Finland operating by mobile payment. The vending machines are presently run by Upphill Oy.

In 2000, Sonera tested card-based payment by mobile phone. The first product tested was the sale of lift tickets at the Rukakeskus Oy ski slopes. Later that year, Sonera launched the operator-independent Mobile Pay service. Since then, mobile phone users have been able to pay for services such as parking fees and restaurant bills, or order chocolate and movie tickets via Sonera's Shopping service.

In 1999, Sonera's wholly-owned subsidiary Payway piloted mobile parking meter payment in Stockholm. In early 2002, the City of Helsinki was the first municipality in Finland to commercially implement the Parkit service for parking meter payment by mobile phone. Parkit is a Payway product. According to the results from the Parkit customer survey, what motorists appreciated most was the user-friendliness, flexibility and reliability of the service.

How To Use The Sonera Shopper Service

In the initial stage of the pilot, the Shopper service will be available in the metropolitan area only, in some of the shops belonging to the chains that participate in the pilot. Users can register for the service at the address www.sonera.net/shopper and at Sonera IN dealers. During the pilot period, there is no connection or monthly charge. Customers only pay the costs that arise from use of the service (e.g., an order of payment code costs EUR 0.16).

The Sonera Shopper service offers flexible payment. The customer sends the search word MAKSU followed by his personal security code to number 13130. For example: MAKSU XXXX. The reply text message that he receives contains a six-digit payment code that he shows to the cashier. The purchases are debited, according to the customer's choice, either to his Shopper account or on his credit card bill.

Customers can make text message inquiries about their most recent payments, total payments and account transactions. Text messages are sent to number 13130. The price of the text messages is EUR 0.16/message sent.

      MAKSUT              The five last payment transactions
      MAKSUT KK              The sum total of the month's payments
      MAKSUT VK              The sum total of the week's payments
      SHOPPER SALDO       Shopper account balance and the five last
                        payment transactions
      TILAA TILIERITTELY  Order for Shopper account statement;
                        transactions of the last 30 days as from date
                        of order

Sonera Shopper Dealers

Sonera Shopper can be used for payment at the following places in the metropolitan area:

      Amica

      -- Gateway, Teollisuuskatu 15, 00051 Helsinki
      -- Mobilante, Elimaenkatu 5, 00051 Helsinki
      -- Tuurentupa, Elimaenkatu 2, 00051 Helsinki

      Arnold's Donuts

      -- Forum Street level, Mannerheimintie 20 B, 00100 Helsinki
      -- Forum Tunnel level, Mannerheimintie 20 B, 00100 Helsinki
      -- Iso Roba, Iso-Roobertinkatu 26, 00100 Helsinki
      -- Tennispalatsi, Fredrikinkatu 65, 00100 Helsinki

      Free Record Shop

      -- Mannerheimintie 4, 00100 Helsinki
      -- Forum, Mannerheimintie 20, 00100 Helsinki
      -- Itakeskus, Itakatu 1A, 00930 Helsinki
      -- Iso-Omena, Piispansilta 11 T60, 02230 Espoo
      -- Myyrmanni, Iskoskuja 3, 01600 Vantaa
      -- Jumbo, Vantaanportinkatu 3, 01510 Vantaa
      -- Keskuskatu 3, 00100 Helsinki

      Pizza Hut

      -- City-kaytava, 00100 Helsinki
      -- Keskuskatu 3, 00100 Helsinki
      -- Tennispalatsi, Fredrikinkatu 56, 00100 Helsinki

      Paamies

      -- City, Kaivokatu 8, 00100 Helsinki
      -- Iso Omena, Piispansilta 11, 02230 Espoo
      -- Aribom Oy, Itakeskus, Itakatu 1 A10, 00930 Helsinki
      -- Jumbo, Vantaanportinkatu 3, 01510 Vantaa
      -- Jarvenpaa, Sibeliuksenkatu 19, 04400 Jarvenpaa
      -- Aribom Oy, Torikatu 1, 04200 Kerava
      -- Ogeli, Makitorpantie 30, 00640 Helsinki
      -- Tapiola, Itatuulentie 8, 02100 Espoo
      -- Tennispalatsi, Fredrikinkatu 65, 00100 Helsinki
      -- Tikkurila, Kielotie 20, 01300 Vantaa

      Telering

      -- Business Center, Elimaenkatu 17-19, 00051 Sonera
      -- Kaivopiha, Kaivokatu 10, 00100 Helsinki

      Videofirma Makuuni

      -- Asematunneli, 00100 Helsinki
      -- Sturenkatu 31, 00550 Helsinki

Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator, as well as a provider of transaction and content services in Finland and in selected international markets. The company also offers advanced data solutions to businesses, and fixed network voice services in Finland and neighboring markets. In 2000, Sonera's revenues totaled EUR 2.2 billion, and profit before extraordinary items and taxes was EUR 0.45 billion. Sonera employs about 10,000 people. www.sonera.com