3Com and Philips Form Strategic Alliance; Philips and 3Com to Deliver Secure Converged Networks to Enterprises; Telecom Italia First to Take Advantage of New Alliance.

MARLBOROUGH, Mass. & AMSTERDAM, Netherlands -- Royal Philips Electronics (AEX: PHI, NYSE:PHG) and 3Com (Nasdaq: COMS) today announced that they have entered into an alliance to provide best-in-class secure converged communications for enterprise customers. The agreement between the two companies enables customers to benefit from Philips' broad communications portfolio supported by 3Com's proven portfolio of edge-to-core networking, security, wireless and network management solutions. The alliance will initially be rolled out in Europe, Middle East, Africa and Latin America.

One of the first customers to take advantage of it is Telecom Italia, recognizing the benefits of a one-stop-shop for end-to-end secure converged solutions. The alliance enables Telecom Italia to focus on the value added business with its customers without having the worries of combining separate portfolios itself.

The simplification and flexibility of a secure converged architecture delivered by the Philips-3Com alliance allows for ready deployment of sophisticated integrated business applications that in turn deliver business benefits and added value. A Philips-3Com solution enables enterprise customers to communicate via voice, data or a combination of the two, using a wired or wireless device of their choice regardless of location, with the confidence that it is fully secured.

Commenting on the alliance, Philips Business Communications' Chief Executive Officer Ad Ketelaars said: "We are extremely pleased with the bolstering of our existing offering this alliance brings. We are now in the position to cover all customers' needs across the complete spectrum of voice, video and data, including security. This gives Philips a leadership role and a compelling advantage throughout the value chain where other market players only offer partial solutions. This broader footprint will enable us to expand our market and take full advantage of the uptake in secure converged communications. It will also increase order hit rates and profit margins of customer projects where our portfolio and services can offer maximum added value across the whole spectrum of voice, video and data rather than just focussing on voice only".

"We offer our customers the freedom to use the device of their choice in communicating, enabling them to directly access all the information they need to have close at hand and have it presented in a format that their chosen device fully supports. And all this in a fully secure manner, without worries about bandwidth, runtime errors, log-on procedures or translations. By doing so we give full meaning to sense and simplicity from a communications perspective," Ketelaars continues.

"This partnership represents a significant opportunity for 3Com to further penetrate the enterprise market," said Bruce Claflin, president and CEO of 3Com Corporation. "The portfolios and strategies of both companies complement each other perfectly, enabling customers to enjoy the benefits of Philips' broad communications portfolio and 3Com's proven portfolio of edge-to-core networking, security, mobility and network management solutions. The combined power of Philips and 3Com addresses the needs of enterprises to switch to secure and converged voice, video and data communications, either gradually or in a single step."

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 EUR 30 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,600 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.philips.com/newscenter.

About 3Com Corporation

3Com Corporation (NASDAQ: COMS) is a leading provider of secure, converged voice and data networking solutions for enterprises of all sizes. 3Com offers a broad line of innovative products backed by world class sales, service and support, which excel at delivering business value for its customers. Through its TippingPoint division, 3Com is the leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection for corporate enterprises, government agencies, service providers and academic institutions. For further information, please visit www.3com.com, or the press site www.3com.com/pressbox.