Nokia 1261 - Manual (Page 72)

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Personalization
Restore factory settings
If you have made changes to your phone’s profiles (settings), you can
restore them to their original or factory settings. The memory, timers,
language selection, and security code are not reset. However, profile and
accessory settings are reset.
1 Press Menu 4-3-4 (Menu > Settings > Phone settings > Restore
factory settings).
2 At the prompt, enter your five-digit security code and press OK.
See “Understand the security code” on page 80 for more information.