Philips Takes over Number One Position in Sales of Diagnostic Ultrasound Equipment According to Klein Biomedical Consultants.

ANDOVER, Mass. -- Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced today that Klein Biomedical Consultants (KBC), recognized as one of the world's leading authorities on the ultrasound market, reports that in 2005 Philips Medical Systems ultrasound business unit took over the market leader position with a 26 percent share of the overall diagnostic ultrasound market in the United States. Philips out-paced market revenue gains with an annual growth rate of 12 percent, according to KBC.

The Klein Report tracks revenues and units by market segment for all manufacturers in the U.S. ultrasound market. KBC uses public information, primary research, and interviews with manufacturers to triangulate the data.

Despite a flat radiology marketplace, Philips grew its market share in this area by two points. In cardiology, according to KBC, market revenues grew 10% last year primarily driven by sales of the Philips iE33. This result was Philips regaining its No. 1 market position for cardiology in the United States with a 35 percent share of total sales.

"We are extremely pleased that we are being recognized for our leadership and growth. It is the combined efforts of all our talented employees that have brought us to this position and will carry us even further," said Victor Reddick, senior vice president global marketing, ultrasound, for Philips Medical Systems.

Philips credits much of its growth in 2005 to the introduction of four new systems in less than two years: the iE33, iU22, HD11 and HD3.

"By learning from and focusing on the changing needs of customers, we have been able to offer the systems and technologies they need to provide better patient management and work more efficiently," said Reddick.

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 $37.7 billion (EUR 30.4 billion) in 2005. 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.philips.com/newscenter.