Philips Unveils Diamond-Encrusted Ambilight(TM) FlatTV(TM) Celebrating Its Millionth Ambilight.

LAS VEGAS -- Philips Electronics today unveiled a diamond-encrusted Ambilight FlatTV celebrating its one millionth Ambilight FlatTV. Created in conjunction with New York--based jewelry company A.Link, the 42-inch Ambilight LCD HDTV features 225 carats of diamonds - close to 2,250 individual diamonds are applied along the sides and edges of the set's Ambilight frame, adding a whole new dimension to the Ambilight feature.

Celebrating the one millionth Ambilight FlatTV, the Diamond FlatTV will be shown at different events around the world to Philips customers, employees and consumers and is one-of-a-kind and will not be available for retail.

Philips' exclusive, Ambilight backlighting technology transforms the overall viewing experience by surrounding the TV with ambient light that automatically adapts in color and intensity according to the changing content on the screen, resulting in a completely immersive experience. A recent Philips satisfaction surveys found 85 percent of customers rate Ambilight technology as "very good" or "excellent".

"Manufacturing our millionth Ambilight FlatTV is a great moment for Philips and demonstrates that consumers have responded strongly to the viewing experience that Ambilight provides," said Rudy Provoost, chief executive officer, Philips Consumer Electronics. "To celebrate in style, we have created a truly glamorous, iconic set to commemorate our entire line of Ambilight FlatTV models. Ambilight backlighting provides an amazing, immersive viewing experience that is unmatched."

Combining class and elegance into a FlatTV

A.Link worked with Philips to develop this one-off special edition Ambilight FlatTV, celebrating the millionth Ambilight FlatTV. The company provided the diamonds as well as its century-old expertise in helping create this one-off special edition Ambilight FlatTV. The set features 225 carats and close to 2,250 diamonds set into a graceful stylized floral pattern around the edges of the TV, and will tour the world in 2007 to mark this important milestone for Philips.

"The Philips Millionth Ambilight FlatTV is truly an amazing piece of art," said Jeffrey Link, president, A.Link. "The combination of our top of the line diamonds and the Ambilight technology creates a beautiful radiance of colorful light and glamour. We pride ourselves in developing products that are iconic and highlight the diamonds in a stylish and sophisticated manner. The millionth Ambilight FlatTV is an amazing icon that we are proud to have helped developed."

Providing consumers an award-winning, immersive viewing experience

Introduced by Philips in 2004, Ambilight creates ambiance, stimulates more relaxed viewing and improves perceived picture detail, contrast and color. Originally introduced on the left and right sides of the FlatTV, the award-winning Ambilight technology can be found in two, three and four-sided (Full Surround) LCD and Plasma models.

In the past decade Philips has drawn on 60 years' heritage in television to capture a leadership position in the LCD display market1. The millionth television comes on the heels of the 10th anniversary of Philips' first-ever flat-panel TV, a 42-inch (107cm) Plasma FlatTV which was displayed at CeBIT Home in 1996. Only four-inches (10cm) 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 now comprises a massive range of more than 30 models, with consumers offered a selection of screen sizes from 15-inch (38cm) up to 63-inch (160cm), with more than 90 percent ready to display high-definition TV.

Developed as a celebration for the development of the millionth Ambilight FlatTV, the set is not available for consumer purchase and will be auctioned off to charity later in 2007.

Please visit www.ces.philips.com for images and additional information.

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.

Full Surround Ambilight is a trademark of Koninklijke Philips Electronics N.V

Cineos is a trademark of Koninklijke Philips Electronics N.V

ClearLCD is a trademark of Koninklijke Philips Electronics N.V

Pixel Plus is a trademark of Koninklijke Philips Electronics N.V

FlatTV is a trademark of Koninklijke Philips Electronics N.V