Philips Launches Software Radio Semiconductor Solution for Improved Digital Entertainment in the Car.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--May 22, 2002

Royal Philips Electronics (NYSE:PHG)(AEX:PHI) is consolidating its leadership in digital entertainment with the launch of a dedicated automotive software radio semiconductor solution. The SAF7730 is a dual IF car radio and audio Digital Signal Processor (DSP), with excellent radio and audio quality. The chip is cost optimized, technically advanced and flexible. User specific functions can be configured to match the software platform required for the car radio manufacturers' system, providing a high level of product differentiation.

Philips is leveraging its lead in the car DSP market to drive the development of automotive software radio. This semiconductor solution will enable car radio manufacturers to add new product differentiating functionality at reduced time-to-market, as only the software needs to be upgraded rather than a completely new hardware design. By integrating the radio and audio software functions onto one chip, the software radio requires fewer external components, which further reduces costs.

"We are strengthening our leadership position in car radio ICs through constant innovations," said Pascal Langlois, vice-president for the semiconductor division of Philips, Global Market Segment Automotive. "The major strength of software radio is that it provides excellent radio and audio quality and is future-proof, enabling manufacturers to differentiate their products by incorporating extra functionality without expensive re-design of systems."

The SAF7730 includes excellent multipath and antenna diversity performance, resulting in superb radio quality. New enhanced audio features are obtainable, including adaptive ultrabass II and music elevation, combined with a high sound quality. The software radio also includes an iDAB interface, enabling digital radio.

Philips will launch a complete family of semiconductor solutions for the automotive software radio market and engineering samples will be available this year, enabling early design-in and product qualification.

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 186,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol:PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.semiconductors.philips.com.