CORRECTING and REPLACING Philips and Sara Lee Launch Senseo in the United States; Arriving on Retailer Shelves in March.

Business Editors/High-Tech Writers

CORRECTION...by Philips Electronics

NEW YORK--(BUSINESS WIRE)--Feb. 19, 2004

In BW5468 issued Feb. 19, 2004: Please replace the release with the following corrected version.

The corrected release reads:

PHILIPS AND SARA LEE LAUNCH SENSEO IN THE UNITED STATES; ARRIVING ON RETAILER SHELVES IN MARCH; SENSEO DELIVERS INDIVIDUAL CUP OF COFFEE WITH A FROTHY COFFEE LAYER

Philips Electronics and Sara Lee Coffee and Tea Consumer Brands, leaders in electronics and beverage products, today announced the launch of their proven, groundbreaking single-serve coffee system, Senseo(TM), throughout the U.S. beginning in March 2004.

The Senseo coffee machine, which combines a patented brewing system from Philips with high quality coffee pods from Sara Lee's Douwe Egberts, one of Europe's premiere coffee brands, was the world's first-ever single-serve, low-pressure filter coffee system offering a frothy coffee layer when it was launched in Europe in 2001. More than 10 years in development and market research, the gourmet coffee system delivers a fresh brewed cup of coffee featuring a unique smooth frothy coffee layer. The Senseo coffee machine automatically uses the right amount of water and ensures that the water passes through the coffee pods quickly and evenly, maximizing the flavor from the coffee bean. The brewing process guarantees a perfect cup of fresh coffee within a minute every time.

In a highly successful rolling launch through five countries (The Netherlands, Belgium, France, Germany and Denmark) over the past three years, more than five million Senseo coffee machines and 2.5 billion Senseo coffee pods have already been sold. Today, more than 30 percent of households in the Netherlands own a Senseo, surpassing the adoption speed of such innovations as the CD, DVD and the mobile phone.

"Coffee House brands have changed the paradigm for the total coffee category," explained Paul Block, president of Sara Lee Coffee and Tea, Consumer Brands - North America. "Today's coffee consumers require premium quality, consistency on a cup-by-cup basis and individual choice. The Senseo coffee machine and coffee pods meet these needs and will revolutionize the way American consumers make and drink coffee at home."

"As it already has in Europe, the Senseo experience will forever change the way US coffee drinkers enjoy coffee at home," said Robert Baird, president of Philips Domestic Appliances Division. "The combination of our best-in-class technology and innovative design expertise with Douwe Egberts' premium coffee quality delivers a convenient, sensational taste, unlike any other coffee beverage. This truly will be the next big thing in American homes."

Philips and Sara Lee collaborated on the creation of the Senseo coffee machine and coffee pods from the very beginning, working together from research and product development to manufacturing and marketing in order to bring Senseo to the U.S. market. A joint marketing campaign, including print and broadcast advertising, consumer promotion and in-store merchandising will support the launch.

The Senseo coffeemaker along with Senseo coffee pods will be merchandised together through widespread national distribution with major retailers and via the Internet. The appliance has a modern design and is available in three colors: cobalt blue, raven black and white. The suggested retail price for the appliance is $69.99. The well-balanced range of Senseo coffee pods provides a choice in strength and taste on a cup-by-cup basis. Senseo coffee pods are available in four varieties building up in strength: Mild Roast, Medium Roast, Dark Roast, and a Decaffeinated blend. The suggested retail price for a pack of 18 Senseo coffee pods is $3.99. For more information regarding the Senseo innovation, log on to www.senseo.com.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $32.8 billion (EUR 29 billion) in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.

Sara Lee Coffee and Tea, a division of Sara Lee Corporation (www.saralee.com), is the second-largest coffee roaster in the world. Sara Lee's largest coffee brand is Douwe Egberts, which is an international coffee tradition celebrating more than 250 years of excellent taste. Founded in the Netherlands in 1753, Douwe Egberts now can be found in many countries around the world. The brand is recognized for a wide range of coffees in markets, offices, fine hotels, restaurants and cafes.