Beijing, China –China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) and Nokia have signed a memorandum of understanding (“MoU”) today confirming their intention to combine Alcatel-Lucent Shanghai Bell (“ASB”) and Nokia’s telecommunications infrastructure businesses in China (“Nokia China”) into a new joint venture. As agreed under the MoU, Nokia expects to hold 50% plus one share in the new joint venture, with China Huaxin holding the remaining shares. Fair value compensation would be received for the contribution of relevant assets to the joint venture.

The new joint venture is conditional on and would be formed after the closing of Nokia’s planned combination with Alcatel-Lucent. The new joint venture would be registered in the China (Shanghai) Pilot Free Trade Zone and have one board of directors, one management team, unified customer and business functions, and one integrated product portfolio and R&D platform. It is expected to be a strong national asset based in China capable of delivering value for both parties.

Rajeev Suri, President and CEO of Nokia Corporation, said: “Today's agreement demonstrates Nokia’s deep commitment to China. Together with China Huaxin, Nokia will be in an excellent position to support strategic initiatives of the Chinese government such as “Internet Plus” and provide a strong link between Europe and China. We look forward to joining with China Huaxin and ASB to drive innovation for customers in China and to help accelerate the country’s shift to an innovation-driven economy. With this MoU now in place, we will also work closely with our new partners to make the case for swift approval of the proposed combination between Nokia and Alcatel-Lucent by the appropriate Chinese authorities.”

Yuan Xin, Chairman, China Huaxin, said: “We are pleased to have signed this agreement with Nokia, and firmly believe the proposed combination would reinforce our companies’ presence in China. By bringing these two entities together, the new company would possess greater capacity for innovation and outstanding R&D capabilities, delivering benefits to our customers and shareholders alike.”

Until the closing of the proposed combination between Nokia and Alcatel-Lucent, Nokia China and ASB will continue to operate as two independent companies.