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Philips and Cingular Wireless Demonstrate Single Antenna Interference Cancellation Technology to Increase GSM Voice Capacity, Improve Voice Quality, and Speed Data Downloads.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 5, 2002

Cingular Wireless Completes Successful Trial Of Philips' New

Interference Cancellation Chips for GSM/GPRS Mobile Handsets

Royal Philips Electronics (NYSE:PHG)(AEX:PHI) and Cingular Wireless today reached an industry first with a successful commercial network field trial of single antenna interference cancellation (SAIC) chips for next generation GSM/GPRS mobile phones. This new semiconductor technology improves voice quality, decreases download times for data and increases the number of calls supported on the network for greater all-around efficiency. The technology will be part of Philips' cellular semiconductor baseband and system solutions offered to cellular handset manufacturers globally. The Cingular trials were conducted on cellular prototypes from Philips.

Philips' technology enables mobile handsets to remove interference from undesired signals while efficiently focussing on the signals from the most appropriate base station. It provides network operators with shorter download times over GPRS data channels and offers more robust GSM communications, including Adaptive Multi-Rate (AMR) speech channels which translate into higher spectral efficiency allowing operators to carry more calls per base station. As a result, network capacity can be increased and service quality improved for cellular subscribers. The first trial of this technology was performed in Georgia, in North America by Cingular Wireless, a leader in mobile voice and data communications.

"The trial showed approximately a 20 percent increase in voice capacity and GPRS throughput, and we expect this to at least double (with likelihood of even more improvement) once we move our networks to fully synchronized," said Dave Williams, vice president strategic technology at Cingular Wireless. "We have been pushing for practical mobile station performance improvements for years, and while others have suggested interference cancellation impractical, requiring two antennas and double the electronics, Philips has stepped up and shown that a high performance low-cost solution is feasible today with a single antenna and a powerful DSP. Combine this with other improvements such as the Adaptive Multi-Rate Vocoder (AMR) we are deploying this year, that is expected to double voice capacity, and EDGE thereafter for double to triple GPRS data rates and you'll see how Cingular and GSM are well positioned for the future."

"Several operators, especially in North America -- where there is a transition to a GSM-based infrastructure -- have shown a great interest in this feature," said Thierry Laurent, executive vice president business unit mobile communications at Philips Semiconductors. "In the future, mobile handset designers and network operators will undoubtedly require technology of this nature to be a standard option from their handset suppliers to ensure that they are delivering a quality service to their customers. We appreciate Cingular Wireless' support in proving the viability of this innovative solution."

This trial has clearly shown the advantages of introducing handsets with SAIC into today's networks. This technology will provide equal benefit to all Gaussian Minimum Shift Keying (GMSK)-based transmission schemes, as used for voice and GPRS. Additionally, there are good indications that the gains will continue to improve with additional network synchronization. To further the adoption and standardization of this new technology, SAIC will be adopted as a work item in 3GPP, an international standards organization developing 3G evolution for GSM and UMTS."

About Cingular Wireless

Cingular Wireless is the second largest wireless carrier in the U.S., and a joint venture between SBC Communications (NYSE:SBC) and BellSouth (NYSE:BLS). As a leader in mobile voice and data communications, Cingular serves more than 22 million voice and data customers across the United States. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide. Cingular's Mobitex-based wireless packet data service operates throughout the United States, covering more than 93 percent of the urban business population located in 492 Metropolitan Statistical Areas (MSAs) and non-MSAs with a total population of 200 million people. Cingular offers customers advanced technologies in simple, cost-effective ways that permit them to tap the creative potential of wireless through their own self-expression. Details of the company are available at www.cingular.com.

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 184,000 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
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Publication:Business Wire
Geographic Code:1USA
Date:Nov 5, 2002
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