Philips and Poudre Valley Health System Collaborate on Advanced Technologies and System Upgrades.

Agreement Paves the Way for State-of-the-Art Technology at New Medical Center of the Rockies 

ANDOVER, Mass. -- Royal Philips (NYSE: PHG; AEX: PHI), and the Poudre Valley Health System (PVHS) today announced a multi-year agreement to install diagnostic imaging equipment and a comprehensive healthcare informatics system throughout PVHS. Armed with the latest technologies in diagnostic imaging and image management, PVHS will continue its vision of providing world class health care and customer service to patients and families in northern Colorado, southern Wyoming and western Nebraska.

George Hayes, CEO of Medical Center of the Rockies says, "In evaluating potential partnerships, we were looking for a single vendor to provide diagnostic and interventional imaging, patient monitoring, and picture archiving and communication systems (PACS). The collaborative relationship between Philips Medical Systems and PVHS is like nothing I have experienced in my career; I see this being a very productive relationship, as we open the doors of MCR and as it expands to further serve the region."

Medical Center of the Rockies, in Loveland, Colo., is a new state-of-the-art regional hospital specializing in cardiac and trauma care that was developed to address the healthcare needs of the population in the Rocky Mountain region. Scheduled to open in February 2007, MCR is the first new full service hospital built to serve this region since 1985. Area patients will benefit from the new Philips diagnostic imaging equipment including magnetic resonance (MR), computed tomography (CT), cardiology and radiology PACS, nuclear medicine, general and cardiac ultrasound, digital and general radiography and fluoroscopy. PVHS expects enhanced customer service, increased efficiencies, shorter wait times, and access to advanced medical care through the use of highly innovative technology, such as iSite PACS and the Allura Xper FD 20 cardiovascular X-ray system.

"Improved connectivity between Poudre Valley Health System's multiple facilities and centers using iSite PACS allows for an enhanced patient experience through efficiencies in diagnosis and treatment," said Kelly Londy, vice president, Strategic Business, for Philips Medical Systems. "PVHS is a progressive organization with the drive to become the best, providing the community with advanced technology to meet the healthcare needs in which it serves."

Russ Branzell, Chief Information Officer at PVHS, says, "Information technology has played a major role in keeping our organization at the forefront of medicine. We rely heavily on IT to help us improve patient documentation and outcomes and believe that Philips' products are at the leading edge in the medical equipment industry. It's a natural fit." Branzell has led the way for PVHS to be named, for three years running, one of the nation's 100 "most wired" healthcare providers by Hospitals and Health Networks journal. PVHS has also been recognized as one of the nation's 500 most innovative users of information technology by Information Week.

The hospital system will replace an existing PACS with Philips iSite, to be used by both radiologists and cardiologists throughout PVHS. Physicians will have access to diagnostic-quality images from any campus location as well as off-campus locations, such as the office or home.

Additionally, installation of the advanced Allura Xper FD 20 cardiovascular angiographic system in the operating room (OR) will allow x-ray examination of blood vessels or chambers of the heart in an environment allowing open surgical procedures, putting PVHS on the leading edge of this new trend in OR imaging system deployment.

About Poudre Valley Health System

The mission of Poudre Valley Health System is to remain an independent, non-profit organization and to provide high quality, comprehensive care that exceeds customer expectations. It is this mission that drives Poudre Valley Health System to excel in patient care quality, patient safety and customer service. Designated a Top 100 Hospital by Solucient, Poudre Valley Hospital (PVHS' flagship facility) continues to receive awards on a regional and national level in quality, safety and service. Poudre Valley Health System, based in Fort Collins, Colorado, has been recognized nationally for its innovation in creating joint venture partnerships with physicians and other healthcare entities, such as Regional West Medical Center, which owns a 12% interest in Medical Center of the Rockies. For more information, go to www.pvhs.org.

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 158,000 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.