CVS and Nokia Launch Industry's First Camera Phone Marketing Alliance

Tuesday, June 22, 2004

WOONSOCKET, R.I., June 22 /PRNewswire-FirstCall/ -- CVS/pharmacy (NYSE: CVS) and Nokia (NYSE: NOK) announced today that they have entered into a 2004 exclusive marketing agreement for the cross-promotion of Nokia's camera-equipped mobile phones and CVS' in-store camera phone printing technology in a variety of marketing and advertising programs.

As part of the agreement, the first of its kind in the retail industry, CVS and Nokia have launched a co-branded Website at http://www.cvsandnokia.com. The site offers Nokia camera and video phones to CVS customers, who are eligible for rebate coupons up to $150 on Nokia phone purchases.

The CVS/Nokia agreement marks CVS' latest move to solidify its position as the national retail leader in digital photo processing. The company is currently the only national retailer to offer consumers the ability to print photos from their camera phones, and was the first national retailer to offer chainwide in-store digital photo printing.

"Being the first retailer to offer wireless camera phone printing using InfraRed or Bluetooth led us to work with Nokia, a company that is devoted to being at the leading edge of mobile imaging technology," explained Grant Pill, Category Manager of Photo Processing at CVS/pharmacy. "Camera phones are the next generation of digital photography and CVS is committed to ensuring its customers have an easy way to take part in this revolution."

"Taking pictures with a camera phone is just the beginning. As more people begin sending, sharing and printing the images that they capture, working with other imaging leaders, like CVS, becomes increasingly important," said Nigel Rundstrom, Vice President of Multimedia Sales and Channel Development for Nokia. "Nokia looks forward to our continuing relationship with CVS as we work together to create easier and more convenient ways for our customers to print and share their memories."

Nokia is the largest maker of image capture devices in the world and will soon offer one megapixel camera phones in the United States, representing a breakthrough in the overall quality of photos printed from camera phones.

As part of the agreement, CVS and Nokia have launched a joint print advertising campaign in leading retailing and photo trade magazines. Nokia camera phone promotions are also featured in CVS' Sunday newspaper circular, which reaches over 35 million households.

In the future, Nokia will also provide test phones to many CVS locations, giving customers the opportunity to snap and print trial camera phone photos and receive information on purchasing Nokia phones.

Last year, camera phones outsold conventional digital cameras for the first time and in 2004, camera phone sales in America are expected to outsell conventional digital cameras by 3-1. In 2005, an estimated 70 billion digital images will be captured and over 60 billion of these images will be captured by camera phones (Source: The Future Image Mobile Imaging Report.).

About Nokia

Nokia is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to enhancing people's lives and productivity by providing easy-to-use and secure products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses. Nokia is a broadly held company with listings on five major exchanges.