1. FC Koln Implements Philips Chip Technology for Contactless Ticketing; FIFA World Cup 2006 Venue Uses MIFARE DESFire Solution for Security and Access Control.

SAN JOSE, Calif. -- Royal Philips Electronics (NYSE:PHG)(AEX:PHI) today announced that 1. FC Koln has implemented a multi-function contactless ticketing solution based on Philips MIFARE(TM) DESFire chip technology. Since the beginning of October, season ticket holders for the RheinEnergieStadion, Cologne -- one of 12 venues due to host the 2006 FIFA World Cup -- have been able to access the recently rebuilt 51,000 capacity arena using a contactless smart card.

Event organizers such as football clubs are increasingly looking to smart card technologies as a way of providing comprehensive access control that is simple to use. Globally, a growing number of clubs have already implemented Philips' smart card solutions for access to their stadiums, including PSV Eindhoven in The Netherlands. More than an access control system, the cards can also work as a loyalty card or electronic purse, enabling football clubs to design applications around their fans' needs.

1. FC Koln implementation sets a new standard for the use of smart cards in a stadium environment. By using both Philips' MIFARE DESFire smart cards and MIFARE DESFire SAM in readers for a secure ticketing infrastructure, the solution offers an unprecedented combination of speed of access, data security and future proofing. The initial implementation will be further enhanced with additional services, such as cashless payment for a variety of services, all of which can be incorporated into the same infrastructure -- including smart cards already in the field.

"By issuing contactless smart cards, we can provide unprecedented levels of functionality and scalability in our stadium, providing convenience and ensuring the safety and security of our loyal fans while providing them with an enhanced experience at every game," said Lars Nierfeld, marketing manager at 1. FC Koln. "The cards have already proved to be an excellent addition to the grounds, and we're looking forward to taking full advantage of the solution's wide range of potential applications in the future."

Initially, the scheme is available to season ticket and membership card holders. However, the standardized reader infrastructure supports a wide range of contactless media, enabling the scheme to be extended to all tickets -- including paper ones -- in the future. Fully compatible with ISO 14443 type A, Philips' open-platform MIFARE interface standard is already the market leader in contactless public transport applications, providing event organizers with the possibility to easily link into these existing infrastructures. MIFARE is also compatible with the NFC technology that Philips jointly developed with Sony, providing the possibility of using NFC-enabled devices such as mobile phones to store electronic tickets.

"As the world's leading supplier of contactless ICs, we're pleased to be working with 1. FC Koln to provide this flexible and user-centric solution," said Jan-Willem Reynaerts, general manager for market sector Transport and Logistics at Philips Semiconductors. "It's a great example of how technology can be designed around its users, providing fans with a simple access solution and the club with the opportunity to offer tailored services, further enhancing the invigorating experience of live football."

About the solution

Designed to meet the increasing demands for high-speed, triple-Data Encryption Standard (DES) secured contactless ticketing solutions, MIFARE DESFire is an ideal fit for service providers and system integrators looking to develop convenient, multi-functional smart card-based systems meeting the highest security standards for use in public transportation, event ticketing, identity, e-government, city loyalty and e-purse schemes.

"MIFARE contactless solutions account for more than 80 percent of the contactless proximity transaction market worldwide," according to Derrick Robinson, senior analyst at IMS Research. Philips has implemented solutions to meet a wide range of needs, including access control for NASA and the Sydney Olympic Games as well as ticketing for The Great Wall of China.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE:PHG)(AEX:PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of $32.8 billion (EUR 29 billion in 2003). With activities in the three interlocking domains of healthcare, lifestyle and technology and 166,800 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.semiconductors.philips.com.

MIFARE is a trademark of Koninklijke Philips Electronics N.V.