Corporate Profile for Philips Digital Videocommunication Systems, dated Oct. 6, 1995.

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Published date:   Oct. 6, 1995

Company name:     Philips Digital Videocommunication Systems

Address:          6501 Deane Hill Dr.
                  Knoxville, TN  37919

Telephone No.:    423/602-3000

Chief Executive
 Officer:         Bill Kennedy, senior vice president and
                    general manager

Chief Financial
 Officer:         Dave Jester

Public Relations
 Contact:         Melissa Cain
 Business number: 423/602-3011

Trading symbol:   PHG (Philips Electronics N.V.)

Industry:         computers/electronics, telecommunications
                  interactive/multimedia

Company description: Philips DVS was established in 1993 and has 70 employees to design and market complete digital video distribution systems based on digital video compression technologies and international standards.

Philips DVS North America is headquartered in Knoxville, Tenn., and Philips DVS Europe is located in Eindhoven, The Netherlands. Philips DVS is a business unit of Philips Electronics N.V., a $37 billion consumer electronics company also based in Eindhoven, The Netherlands.

The interactive industry has been coined "information superhighway" and has gradually grown to encompass concepts such as the Internet, Distance Learning and various "on-demand" applications. The industry in which Philips DVS is an active participant actually refers to the delivery of digital video, audio and data via cable, telephone or satellite networks.

Applications such as video-on-demand, education-on-demand and interactive advertising are only a few of the most talked about applications to be developed for these types of networks. Networks are converging as cable companies obtain the rights to broadcast in the telephone company's territory, telephone companies begin to offer video, and broadcasting companies merge and are taken over by larger cable companies and networks. The environment in which Philips DVS operates is volatile and challenging, and one in which products and technology depend upon the direction of these markets.

Philips DVS markets MPEG and DVB compliant Audio and Video Encoders, Decoders, Conditional Access Systems, Multiplexers, Modulators and Video Servers, to the cable, telephony and broadcast markets. Each of these products was developed to the Moving Picture Experts Group (MPEG) and Digital Video Broadcasting (DVB) group standards.

Philips was integral in developing these international standards and is a founding member of these groups. Together with DVS Europe, our current customers represent each of these markets both domestically and internationally. Philips DVS Knoxville and Europe are both involved in several trials and commercial deployments abroad as well, providing digital broadcast delivery and interactive systems and set-top decoders.

CONTACT: Philips DVS