Philips Manufactures Millionth Ambilight(TM) FlatTV(TM).

BRUGES, Belgium -- Philips Consumer Electronics, the global LCD FlatTV market leader1, today announced that its one millionth Ambilight FlatTV has been manufactured at its main manufacturing facility in Bruges. The millionth Ambilight FlatTV, a 42-inch LCD High-Definition (HD) display with Philips' unique Ambilight Full Surround feature, demonstrates that consumers are seeking an exceptional viewing experience which only Ambilight can provide. Consumer satisfaction surveys conducted by Philips show that 85 percent of customers rate Ambilight as either "excellent" or "very good."

"We're very proud to announce this important milestone for Philips Consumer Electronics," said Rudy Provoost, chief executive officer, Philips Consumer Electronics. "This demonstrates that Ambilight has clearly become a hit with consumers - it not only enhances the overall viewing experience but it also makes watching TV easier on the eyes. We look forward to our next million Ambilight FlatTVs and remain committed to our brand promised of 'sense and simplicity' - delivering products and solutions that are easy to experience, advanced and designed around the consumer."

Ambilight makes an impressive contribution to the overall viewing experience by producing ambient light that automatically and independently adapts color and intensity according to the changing content on the screen. Ambilight adds a new dimension to the viewing experience and completely immerses the viewer. Introduced by Philips in 2004, Ambilight creates ambiance, stimulates more relaxed viewing and improves perceived picture detail, contrast and color.

In the past decade Philips has drawn on 60 years heritage in television to capture a leadership position in the LCD display market. The millionth television comes on the heels of the 10th anniversary of Philips' first-ever flat screen, a 42-inch Plasma FlatTV which was displayed at CeBIT Home in 1996. Only four inches thick with a widescreen viewing angle of 160 degrees, "the world's first TV you can hang on the wall like a painting" created a worldwide media storm.

Today, the majority of TVs sold by Philips are either LCD or Plasma FlatTVs. The 2006 range comprises a range of more than 30 models, with consumers offered a selection of screen sizes from 15-inch up to 63-inch, with more than 90 percent ready to display HD TV.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG)(AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.

Ambilight is a trademark of Koninklijke Philips Electronics N.V

FlatTV is a trademark of Koninklijke Philips Electronics N.V

1 According to DisplaySearch, leading market research organization