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Press Release
January 6, 2008

Philips' new design and elegant simplicity dazzles at the 2008 Consumer Electronics Show

LAS VEGAS - Philips has unveiled its striking new design identity at the Consumer Electronics Show (CES) 2008, with the introduction of the Design Collection, creating a holistic and iconic design across its complete home entertainment range. Philips also announced a collaboration with Rhapsody®, the online music service from RealNetworks and MTV Networks, offering the ultimate simplicity solution for music downloads.

Commenting on the Design Collection, Philips' new Consumer Lifestyle Chief Executive Officer, Andrea Ragnetti said: "Consumers have shared with us their desire for products with a simpler and softer, more sophisticated design. Something that touches the heart as well as the head," said Mr. Ragnetti, "With this Design Collection, being minimalist, emotional and recognizable, we've created a solution that focuses on the consumer's needs to deliver simple and meaningful fulfilment. We have brought a new sense of elegance, innovation and sophistication to consumer products not yet seen in the consumer electronics sector."

The future of home entertainment - Philips' Design Collection
In the past, home entertainment solutions were boxes and devices providing consumers with an entertainment experience. What used to be a consumer electronic device is now a signature piece of furniture that helps define personal style and space.

At the core of the Design Collection are the innovative and state-of-the art designs taking once-familiar objects and giving them a new sense of intimacy. The design language has moved away from a 'masculine technology box' to a smoother, more feminine approach that integrates seamlessly into the home environment.

The new Design Collection recently received its first accolade as a winner of the 2008 CEA Innovations Award for Design and Engineering. Philips' new 52-inch Ultimate Dream TV (52PFL7603D) won the award for its amazing style and impressive array of innovative video technologies. In addition to the Ultimate Dream TV, the Design Collection will feature a range of FlatTVs™ and other home entertainment products.

Connecting to a world of entertainment
Consumers not only want products that look good and perform well, but devices that access and playback a variety of content. Announced at CES, Philips also unveiled a partnership with Rhapsody®, offering an initial subscription-based music service to provide customers with the music they want, where they want it, whether at home or on the go. The Rhapsody® service will be available with both Philips' portable GoGear™ MP3 Players and Streamium™ home audio products.

Philips' new Streamium™ NP1100 is Philips' first home audio product created to specifically work with subscription-based music services. With Philips' NP1100, consumers can listen to free internet radio and access Rhapsody® directly from their home stereo without numerous wired connections.

Rhapsody® is a membership-based music service that provides unlimited access to a catalog of millions of full length, CD-quality tracks. It allows consumers the ability to listen to as much new music as they wish for a low monthly fee. Rhapsody® and Philips will offer an "all-you-can-eat plan" allowing consumers the choice to explore tracks to download or refresh anywhere there is an internet access point. The Rhapsody® service is available in the US and Europe.

A new way to enjoy home entertainment
Philips continues its design led innovations with a new version of its award-winning Ambisound. In the modern home entertainment system, image is not everything and sound matters as much as what is on the screen. Philips' Ambisound delivers with a 5.1 surround sound and stands out through its stunning design.

Featuring two new models (HTS6100 and HTS6515D), the new Ambisound range provides a simple solution to a truly immersive home entertainment experience.

Continuing its leadership in home entertainment, Philips showed off its latest Blu-ray player. A leader in delivering Blu-ray technology, Philips released the new BDP7200 - a Profile 1.1 compliant Blu-ray Disc player fully optimizing the complete HD experience.

Taking entertainment on the go
Philips Active Crystals bring elegance and style to USB peripheral devices. Created in partnership with the renowned crystal house, Swarovski, the Active Crystal range combines high fashion design with the best in technology, creating a fusion of fashion and function. New to the range in 2008, Philips and Swarovski introduce a new lilac crystal collection launching prior to Valentine's Day. The new lilac crystal collection is the perfect gift choice for someone special.

Providing additional freedom from wires and constraints, Philips introduces the new BTM630 Bluetooth device freeing digital audio files from personal music players, cell phones and PCs. The device features a sleek, wireless design and has an integrated iPod® portable media player dock that can also play music from an SD or MMC card.

For more information on the products, please visit www.philips.com/ces or booth 12124.

For further information please contact:
Philips Consumer Lifestyle North America
Lindsay Woods
770-821-2392
lindsay.woods@philips.com


About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales USD 34 billion (EUR 27 billion)in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, as well as lifestyle solutions for personal wellbeing. News from Philips is located at www.philips.com/newscenter.

Philips Consumer Lifestyle press release.doc


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