Nokia to Acquire Loudeye and Launch a Comprehensive Mobile Music Experience

Nokia to Acquire Loudeye and Launch a Comprehensive Mobile Music Experience

ESPOO, Finland and SEATTLE, Washington, August 8/PRNewswire-FirstCall/ -- Nokia (NYSE: NOK) and Loudeye Corp. (Nasdaq: LOUD) today announced that
they have signed an agreement for Nokia to acquire Loudeye for approximately
USD 60 million. Loudeye is a global leader of digital music platforms and
digital media distribution services. Under the terms of the agreement,
Loudeye stockholders will receive USD 4.50 per share in cash for each share
of Loudeye common stock. By acquiring Loudeye, Nokia can offer consumers a
comprehensive mobile music experience, including devices, applications and
the ability to purchase digital music.

The multi-function mobile device will become the preferred medium for
enjoying music and Nokia is leading this trend. With music optimized products
like the Nokia N91 and other Nokia devices, Nokia sold more than 15 million
music enabled devices in the 2nd quarter, making it the world's largest
manufacture of digital music players.

"Music is a key experience for Nokia and Nokia Nseries multimedia
computers and we want to be able to offer the best fully integrated mobile
music experience to our customers. Loudeye brings a number of key assets to
Nokia, including a great team of people, a substantial content catalogue and
a robust service platform that will help us to achieve this objective," said
Anssi Vanjoki, executive vice president and general manager, Multimedia,
Nokia. "People should be able to access all the music they want, anywhere,
anytime and at a reasonable cost. With this acquisition, we aim to deliver
that vision and a comprehensive music experience to Nokia device owners
during 2007."

Loudeye operates 60 live services in over 20 countries and multiple
languages across Europe and South Africa, Australia and New Zealand. Loudeye
aggregates rights and content from all the major labels and hundreds of
independents and currently offers licensed catalog and complete media for
over 1.6 million tracks.

"This agreement recognizes the key roles that Loudeye and our people play
in the digital mobile music market, and reflects the power of our products,
our team and our technology," said Michael Brochu, president and chief
executive officer of Loudeye. "Our combined teams will deliver a
comprehensive mobile music experience to Nokia device owners all over the
world. With an industry leading music experience, a robust service platform,
and extensive music rights, Loudeye has long been committed to delivering on
the digital music needs of consumers, and we've built a leadership brand in
the digital music marketplace".

Nokia Nseries multimedia computers represent the next leap forward in
personal computing. The multimedia computer offers all the functionalities of
a PC and many portable single purpose devices in a connected mobile device
that is always with you and always connected. Because multimedia computers
have a programmable operating system, people can download and install
software applications. Unlike most mobile devices, this means people can add
features and applications to their multimedia computers without having to buy
a new device.

Tens of millions of Nokia devices have a music player and every Nokia
Nseries device incorporates a music player, high memory capacity and an FM
radio, as well as support for a wide range of digital music formats including
MP3, M4A, AAC and WMA. With the Nokia Nseries, you can quickly and easily
find and purchase music over the air and download it to your device from your
music store. Or, simply drag and drop your personal music collection from
your PC to your Nokia Nseries device or synchronize your recent music
purchases with your PC via Bluetooth or USB cable.

The transaction is expected to be completed in the fourth quarter of
2006. Closing of the transaction is subject to satisfaction of a number of
conditions, including approval of Loudeye's stockholders, regulatory
approvals, obtaining consents from third parties to the continuation,
modification, extension and/or termination of certain specified contracts,
and the absence of a material adverse effect in Loudeye's business or
operations, including loss of employees, loss of customers, or failure to
maintain a minimum specified cash balance, each as described in the merger
agreement.

About Nokia Nseries

Nokia Nseries is a range of high performance multimedia devices that
delivers unparalleled mobile multimedia experiences by combining the latest
technologies with stylish design and ease of use. With Nokia Nseries
products, consumers can use a single device to enjoy entertainment, access
information and to capture and share pictures and videos, whenever and
wherever they want.

About Nokia

Nokia is the world leader in mobile communications, driving the growth
and sustainability of the broader mobility industry. Nokia connects people to
each other and the information that matters to them with easy-to-use and
innovative products like mobile phones, devices and solutions for imaging,
games, media and businesses. Nokia provides equipment, solutions and services
for network operators and corporations (www.nokia.com).

About Loudeye

Loudeye is a worldwide leader in business-to-business digital media
solutions. Loudeye combines innovative services with a broad catalog of
licensed digital music and an industry leading digital media infrastructure,
enabling partners to rapidly and cost effectively launch complete, customized
digital media stores and services.

Loudeye is headquartered in Seattle, USA with offices in London and
Bristol UK, Paris France, Cologne Germany and Milan Italy. It employs
approximately 130 people with reported revenue in 2005 of approximately $20.3
million, excluding discontinued operations. For more information, visit
www.Loudeye.com.

Nokia Forward-Looking Statement Disclaimer

It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A) the
timing of product and solution deliveries; B) our ability to develop,
implement and commercialize new products, solutions and technologies; C)
expectations regarding market growth, developments and structural changes; D)
expectations regarding our mobile device volume growth, market share, prices
and margins, E) expectations and targets for our results of operations; F)
the outcome of pending and threatened litigation; and G) statements preceded
by "believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed" or similar expressions are forward-looking statements. Because
these statements involve risks and uncertainties, actual results may differ
materially from the results that we currently expect. Factors that could
cause these differences include, but are not limited to: 1) the extent of the
growth of the mobile communications industry, as well as the growth and
profitability of the new market segments within that industry which we
target; 2) the availability of new products and services by network operators
and other market participants; 3) our ability to identify key market trends
and to respond timely and successfully to the needs of our customers; 4) the
impact of changes in technology and our ability to develop or otherwise
acquire complex technologies as required by the market, with full rights
needed to use; 5) competitiveness of our product portfolio; 6) timely and
successful commercialization of new advanced products and solutions; 7) price
erosion and cost management; 8) the intensity of competition in the mobile
communications industry and our ability to maintain or improve our market
position and respond to changes in the competitive landscape; 9) our ability
to manage efficiently our manufacturing and logistics, as well as to ensure
the quality, safety, security and timely delivery of our products and
solutions; 10) inventory management risks resulting from shifts in market
demand; 11) our ability to source quality components without interruption and
at acceptable prices; 12) our success in collaboration arrangements relating
to development of technologies or new products and solutions; 13) the
success, financial condition and performance of our collaboration partners,
suppliers and customers; 14) any disruption to information technology systems
and networks that our operations rely on; 15) our ability to protect the
complex technologies that we or others develop or that we license from claims
that we have infringed third parties' intellectual property rights, as well
as our unrestricted use on commercially acceptable terms of certain
technologies in our products and solution offerings; 16) general economic
conditions globally and, in particular, economic or political turmoil in
emerging market countries where we do business; 17) developments under large,
multi-year contracts or in relation to major customers; 18) exchange rate
fluctuations, including, in particular, fluctuations between the euro, which
is our reporting currency, and the US dollar, the Chinese yuan, the UK pound
sterling and the Japanese yen; 19) the management of our customer financing
exposure; 20) our ability to recruit, retain and develop appropriately
skilled employees; and 21) the impact of changes in government policies, laws
or regulations; as well as 22) the risk factors specified on pages 12 - 22 of
the company's annual report on Form 20-F for the year ended December 31, 2005
under "Item 3.D Risk Factors."

Loudeye Forward-Looking Statement Disclaimer

This release contains forward-looking information within the meaning of
the Private Securities Litigation Reform Act of 1995. The forward-looking
statements in this release are based on current estimates and actual results
may differ materially due to risks associated with the fact that the
consummation of the transaction is subject to numerous closing conditions,
including, among others, (i) the approval of the transaction by Loudeye's
stockholders and by regulatory authorities, (ii) Loudeye's ability to obtain
consents from third parties to the continuation, modification, extension
and/or termination of certain specified contracts, and (iii) the absence of a
material adverse effect in Loudeye business or operations, including as a
result of loss of employees, loss of customers or failure to maintain a
minimum specified cash balance, each as described in the merger agreement;
the risk that the transaction may not be consummated if the conditions to
closing are not satisfied or waived; the risk that Nokia has certain
termination rights in the definitive merger agreement including as a result
of a material adverse effect in Loudeye's business or operations; the effect
of announcement of the proposed transaction on Loudeye's business and the
overall demand for Loudeye's services; the timing of market adoption and
movement toward digital mobile music offerings; the ability of Loudeye to
offer its services into new territories and markets; the market adoption of
new mobile music devices; margin erosion or market shrinkage; other risks set
forth in Loudeye's most recent Form 10-Q, Form 10-K and other SEC filings
which are available through EDGAR at www.sec.gov. These are among the primary
risks we foresee at the present time. Loudeye assumes no obligation to update
the forward-looking statements.

Additional Information and Where to Find It

In connection with Loudeye's solicitation of proxies with respect to the
meeting of stockholders to be called with respect to the proposed merger,
Loudeye will file with the Securities and Exchange Commission (the "SEC"),
and will furnish to stockholders of Loudeye, a proxy statement. Stockholders
are advised to read the proxy statement when it is finalized and distributed
to stockholders because it will contain important information. Stockholders
will be able to obtain a free-of-charge copy of the proxy statement (when
available) and other relevant documents filed with the SEC from the SEC's
website at www.sec.gov. Stockholders will also be able to obtain a
free-of-charge copy of the proxy statement and other relevant documents (when
available) by directing a request by mail or telephone to Loudeye Corp.,1130
Rainier Avenue South, Seattle, WA 98144, Attention: Corporate Secretary,
Telephone: (206) 832-4009, or from Loudeye's website, www.loudeye.com.

Loudeye and certain of its directors, executive officers and other
members of management and employees may, under the rules of the SEC, be
deemed to be "participants" in the solicitation of proxies from stockholders
of Loudeye in favor of the proposed merger. Information regarding the persons
who may be considered "participants" in the solicitation of proxies will be
set forth in Loudeye's proxy statement when it is filed with the SEC.
Information regarding certain of these persons and their beneficial ownership
of Loudeye common stock as of March 1, 2006 is also set forth in the Schedule
14A filed by Loudeye on May 10, 2006 with the SEC. This document is available
free of charge at the SEC's web site at www.sec.gov or by going to Loudeye's
corporate website at www.loudeye.com.

In addition, Nokia may be deemed to be participating in the solicitation
of proxies from Loudeye's stockholders in favor of the approval of the
proposed merger. Information concerning Nokia's directors and executive
officers is set forth in Nokia's proxy material for its 2006 annual general
meeting, which was filed with the SEC on February 16, 2006, and Nokia's 2005
annual report on Form 20-F filed with the SEC on March 2, 2006. These
documents are available free of charge at the SEC's web site at www.sec.gov
or by going to Nokia's Investor Relations page on its corporate website at
www.Nokia.com.

www.nokia.com

Source: Nokia

Nokia - Media Contacts: Nokia, Multimedia, Communications, Kari Tuutti, Tel. +358-7180-45667, Email: press.office@nokia.com. Investor Contacts: Nokia Investor Relations, Europe, Tel. +358-7180-34289. Nokia Investor Relations, US, Tel. +1-914-368-0555. Loudeye - Media Contacts (U.S.): Karen DeMarco / Gil Lee, mPRm for Loudeye, Tel. +1-323-933-3399, Email: kdemarco@mprm.com / glee@mprm.com. Media Contacts (Europe) - Chris Owen, Trimedia Communications UK for Loudeye, Tel. +44-(0)207-471-6851 or +44-(0)7787-122-800, Email: chris.owen@trimediauk.com. Investor Contacts: Investor relations, Chris Pollak, Tel. +1-206-832-4000, Email: ir@loudeye.com

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