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24th June 2002

Sonera Selects Pace-Vega Gateways For New VoIP Service

Sonera, Finland's leading provider of mobile and advanced
telecommunications will launch a new Voice Over Internet
Protocol (VoIP) telephony service on July 1 2002, using VoIP
gateways from Vegastream, part of the Pace Micro Technology

Using the Pace Vega100 VoIP gateway on their DSL network,
Sonera will deliver 'next generation' telephony services for the
residential market. Sonera's 'Puhekaista' or 'Voice Highway'
service will provide telephony via the PC, videoconferencing,
instant messaging, electronic phonebook, 'buddylist' with
presence information and network gaming.

The Pace Vega gateway links Sonera's traditional circuit switched
network to a next generation VoIP network. The gateway
converts voice into data packets for transportation over Sonera's
network using Internet Protocol (IP). Sending voice as data
packets enables Sonera to maximise the capacity of its network
and leverage investment in broadband through new, revenue-
rich on-demand features.

Sonera is one of 80 telecommunication companies worldwide now
deploying or trialing Pace Vega gateways. "The strengths and
benefits of VoIP are rapidly gaining attention," said Andy Trott,
Divisional CEO for Pace, "as telcos see opportunities to provide
richer services that compete with cable-based Internet service
providers who are rapidly expanding voice services."

According to industry analysts Frost & Sullivan, VoIP has suffered
from unfulfilled hype for several years but is finally ready to live
up to its potential, with anticipated sales of VoIP gateways set to
reach $2.9bn in 2006.

"Sonera's deployment of VoIP services across Finland will
significantly raise the profile of VoIP technology," added Andy
Trott for Pace. "Sonera is renowned for its innovation and forward
thinking whilst Finland is among the most mature broadband and
mobile markets in the world, with penetration rates of mobile
telephony at almost 80%. This powerful combination means
Sonera's VoIP service will be viewed as a test case by telcos
worldwide, of how next generation teleco services and
technologies can spur fresh growth.

"At the same time, Sonera's selection of Pace Vega gateways
testifies to Pace's expertise in designing and developing VoIP
technology. Pace engineers have worked closely with Sonera
over the past two years to develop bespoke technology solutions
that meet their specific technological and commercial needs."

Jari Hakalin, Director of Sonera added: "Sonera has a huge base
of residential voice customers who are a ready market for
next-generation media services. By utilising Pace's VoIP gateway
technology, we are able to meet this market demand, retain
existing customers and provide fresh, innovate services that
enhance the return on our investment in broadband."

VoIP Definition

Voice Over Internet Protocol (VoIP) is the method by which
voiceis digitized and sent through the Internet in digital packets
rather than in the traditional circuit-committed protocols of the
public switched telephone network (PSTN).

About Sonera

Sonera Corporation (HEX: SRA, NASDAQ: SNRA) is a leading
provider of mobile and advanced telecommunications services.
Sonera is growing as an operator in addition to being a provider
of transaction and content services in Finland and selected
international markets. The company also offers advanced data
solutions to businesses and fixed network voice services in
Finland and neighbouring markets. In 2001, Sonera's revenues
totalled EUR 2.2 billion and profit before extraordinary items and
taxes was EUR 0.45 billion. Sonera employs about 10,000 people.

About Pace Micro Technology plc

Pace Micro Technology plc is a pioneer of digital technology for
the home and has helped build the global market for pay
television services. Using this expertise, Pace is evolving the
set-top box into a home gateway to enable sophisticated services
for TV and the networked home. In this networked home, the
Pace home gateway is the portal for interactive communications,
for consumer devices and services to interact with each other
and the outside world.

Pace was the largest European supplier of home gateways
(set-top boxes) during 2000. Its analogue and digital technology
has been installed in over thirteen million homes worldwide since
it was founded in 1982. The company is now actively involved in
all digital platforms - satellite, terrestrial, cable, wireless and
xDSL - through alliances with broadcasters, network operators
and technology partners in the UK, USA, Europe, Latin America,
Australasia and the Far East. These achievements were made
possible through the commitment of Pace's 1000 strong
workforce, over half of whom are research and development
engineers, dedicated to the development of digital technology
for the home and small and home office markets.

Pace's head office is in Shipley West Yorkshire, with further
offices in Bracknell, Cambridge, the USA and Hong Kong. The
company's shares are traded on the London Stock Exchange
(PIC). For further information, please visit Pace's web site at

About Vegastream

Vegastream is part of the Pace Micro Technology plc group, with
a mission to develop world beating, low-cost high-performance
voice over internet protocol (VoIP) products based upon
international communications standards.

Pace's Vega VoIP technology enables Network Operators to
benefit from integrated telephony services that will protect their
investment and enhance their business by providing a 'gateway'
between traditional and 'new world' telecommunications. The
company has received international accolades for its innovative
engineering, resulting in sales to Japan, Finland and the USA.

For more information please contact:

Helen Kettleborough Tel: +44(0)1274 538005
E mail:
Amanda David Tel: +44(0)1274 537093

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