Nokia and the French Government announce agreement on a shared vision of innovation in France enabled by Nokia's proposed combination with Alcatel-Lucent

Paris, France and Espoo, Finland - Nokia's President and Chief Executive Officer Rajeev Suri met today with Emmanuel Macron, France's Minister of Economy, Industry and Digital Affairs, to formally affirm Nokia's commitment to driving innovation in France and, globally, from France, that will result from Nokia's proposed combination with Alcatel-Lucent. Today's announcement follows an open and fruitful dialogue between Nokia and the French Government since the proposed combination was announced in April 2015.

In its discussions with the French Government, Nokia has confirmed that France will play a leading role in the combined entity's Research and Development ("R&D") operations. Nokia will build on the strong competencies in the country within key technology areas, on the existing presence of Alcatel-Lucent and its strong engagement in the technology ecosystem in France, and on the excellent new technical talent available from French universities.

Nokia intends to leverage Alcatel-Lucent's existing capabilities in R&D and its strong talent base through worldwide technology centers located in France that will focus on 5G and Small Cells, Cyber-security and privacy, Bell Labs, Wireless Transmission, Optical transmission, and IP platforms.

Nokia expects to benefit from becoming a deeply embedded part of France, tapping into and helping develop the technology ecosystem of the country. Nokia will invest further in the digital innovation ecosystem in France following the completion of the transaction, primarily through the establishment of a long-term investment fund in the range of EUR 100 million. This fund will mainly target the Internet of Things, cyber-security and software platform enablers for next generation networks.

Nokia intends to support the development of the overall telecom ecosystem in France and to ensure continuity of Alcatel-Lucent's current initiatives. This involves playing an active role in the government's "Industry of the Future" program, funding academic tuition, programs and chairs, situating technology experts within France (such as within Bell Labs France), and continuing Alcatel-Lucent's involvement in major initiatives such as Pôles de compétitivité Systematic, Cap Digital, and Images and Réseaux. Nokia will also develop three industrial platforms and networks prototypes in France within the fields of 5G, Industrial Internet / Internet of Things connectivity and cyber-security.