BIRD Develops GSM/GPRS/EDGE Handsets Based on Philips Nexperia Cellular System Solution.

SAN JOSE, Calif. -- As a result of its long-standing partnership with Royal Philips Electronics (NYSE:PHG)(AEX:PHI), BIRD will develop its first EDGE-enabled handset based on a Philips' Nexperia(TM) Cellular System Solution. With EDGE technology, consumers benefit from high-speed wireless connectivity, enabling advanced, data-intensive applications such as video streaming and real-time audio. BIRD is a leader in its domestic market, with sales exceeding 10 million handsets in 2004.

By using the Nexperia Cellular System Solution 6120, BIRD capitalizes on the market opportunity for GSM/GPRS/EDGE handsets, bringing advanced multimedia capabilities to consumers while simplifying the product development process. The solution offers BIRD the opportunity to deliver integrated, cost-effective handsets to its rapidly expanding customer base -- at home and abroad.

"Our long-term partnership with Philips as a provider of semiconductor technology and cellular systems know-how now moves up the value chain with the development of the GSM/GPRS/EDGE handset. We expect to launch the first handset based on Nexperia 6120 by August 2005," said Ma Xiaojian, vice general manager, BIRD.

"With its recent rank in the top 10 global handset providers, BIRD's continued success in the global market highlights the strength of the relationship between our companies. It also demonstrates the value of our Nexperia Cellular System Solution for shortening the development time of advanced, multimedia-enabled handsets," said Gert-Jan Kaat, senior vice president of the Mobile Communications Business Unit, Philips Semiconductors.

Philips' EDGE system solution has achieved full Interoperability Test (IOT) validation, which ensures reliability and compliance with networks. The solution comes with a developer's kit, providing customers with immediate access to the system solution to develop their own applications, as well as a self-guided training pack and complete set of documentation. Worldwide local support is available to help customers get to market quickly with the right product. Furthermore, Philips offers training sessions for hands-on learning.

Philips pioneered the system solution approach in 1999. Today, more than 150 million Nexperia-based systems have been brought to market.

Editor's notes: Technical information on the Nexperia Cellular System Solution 6120

Validated for EDGE class 10, the 6120 solution supports data transfers with fast downlink speeds of up to 220 kbps. The inclusion of an ARM9 baseband and the LifeVibes(TM) Multimedia suite makes it possible to stream 3GPP or MPEG4 files in 15 frames per second in quarter common image format (QCIF), making it ideal for TV-on-mobile. The solution also enables high-quality QCIF video recording at 15 frames per second without the need for an external co-processor. The playback of MP3 and AAC audio files, as well as the generation of stereo polyphonic sounds, makes use of the fully integrated stereo capabilities. Built-in mono interference cancellation (MIC), a version of single-antenna interference cancellation (SAIC), improves voice quality, decreases the number of dropped calls and increases data transmission speeds.

The integrated LifeVibes software suite further supports certified, JTWI-compliant Java with JSR 135 Mobile Multimedia API (MMAPI), OMA DRM 1, the revolutionary full-duplex speakerphone functionality including noise cancellation, and voice clarity for enhancement of speech intelligibility.

The Philips Nexperia Cellular System Solution 6120 is comprised of a quad band class 12-capable EDGE chipset, including Philips Nexperia Cellular Baseband (PCF5213), RF SiP (UAA3587), power amplifier (BGY284E), power management unit (PCF50603), integrated discretes and software. The bill of materials (BOM) is highly competitive due to component integration. Hardware extensions include the Nexperia Mobile Image Processor (PNX4000), FM radio (TEA5761UK) and Bluetooth 1.2 module (BGB204).

About BIRD

BIRD is located in Fenghua, Ningbo City, China, and has 20,000 employees. The company, which originally manufactured pagers, has grown to become a manufacturer of a wide range of communications products including mobile phones and handheld PCs. The company sold 13 million handsets in 2004, and of the sales income more than 10 billion RMB. The company has net assets worth 20 billion RMB. BIRD has R&D facilities with the ability to develop a variety of technologies, including those for GSM and CDMA mobile phones. These facilities, which have over 1000 experienced engineers between them, are located in the cities of Ningbo, Hangzhou and Chongqing. The company has its own sales network which consists of 40 branch companies, 400 sales offices and more than 50,000 shops covering all of China. BIRD also exports mobile phones to Europe, South Africa, South-East Asia, the Russia and India etc, with total exports reaching 3,000,000 handsets in 2004.

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 $37.66 billion (EUR 30.3 billion in 2004). With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,500 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.

Nexperia and LifeVibes are registered trademarks of Koninklijke Philips Electronics N.V. All other names mentioned are trademarks, registered trademarks or service marks of their respective owners.