Philips partners with The Wisconsin Heart Hospital to launch new state-of-the-art hospital offering singular focus on cardiovascular care; Partnership keeps The Wisconsin Heart Hospital on the cutting edge of technology.

Business Editors

ANDOVER, Mass.--(BUSINESS WIRE)--Sept. 25, 2003

Royal Philips Electronics (NYSE:PHG, AEX: PHI) today announced that its medical systems division and The Wisconsin Heart Hospital have signed a multi-million dollar, 6-year partnership that will provide The Wisconsin Heart Hospital with best-in-class, highly integrated, customized solutions for cardiovascular care.

Scheduled to open in January 2004, The Wisconsin Heart Hospital will be the leading regional cardiovascular care center in the Milwaukee area featuring a full range of Philips advanced imaging technologies, including computed tomography (CT), magnetic resonance (MR), ultrasound and X-ray angiography equipment. The Wisconsin Heart Hospital is a partnership with Covenant Healthcare, cardiovascular physicians and community investors. In addition, The Wisconsin Heart Hospital will serve as a reference site for medical professionals interested in viewing Philips products and services in a clinical setting.

"Our dedication to cardiovascular care mirrors that of Philips - we want to create a long-term, collaborative partnership that significantly advances treatment for patients in our community," said Norma McCutcheon, CEO, The Wisconsin Heart Hospital. "Working with Philips, we can leverage advanced imaging technologies and services for increased cost-efficiencies and deliver faster diagnoses and, ultimately, better care to patients."

"Philips is honored to partner with The Wisconsin Heart Hospital in their dedication to improving patient care through access to the best technology, an environment of excellence and clinical capabilities," said Jouko Karvinen, president and CEO, Philips Medical Systems. "The foundation of our partnership is the shared vision to create a healthcare model of the future for cardiovascular care."

The World Health Organization estimates that seventeen million people die from cardiovascular disease every year. In addition, according to the American Heart Association, cardiovascular disease is the number one killer in America and claims more lives than the next seven causes of death combined. In an effort to combat this disease and provide patients with the best care possible, healthcare leaders are creating specialty heart hospitals that group advanced imaging and diagnostic technologies under one roof - creating centers of excellence focused solely on cardiovascular care and research. These centers, in collaboration with Philips Medical Systems, are working towards improved patient outcomes, helping professionals research and identify new and better ways to treat cardiovascular disease.

The Wisconsin Heart Hospital is a two-story, 126,000 square foot facility that focuses on comprehensive cardiac and vascular services including surgery, diagnostic imaging, emergency exam department (six rooms), outpatient care (21 rooms), inpatient care (40 rooms), and wellness and preventative medicine programs. It will have a 24-hour emergency room and a charity care policy that is consistent with Covenant Healthcare System, a faith-based not-for-profit health care system with more than 100 years of history. The 60-bed heart hospital will feature four cardiac/ electrophysiology catheterization (cath) labs for immediate cardiac intervention and one peripheral vascular lab with easy access to two operating rooms and the ability to expand to three as needed.

The Wisconsin Heart Hospital will utilize several Philips technologies including X-ray angiography, ultrasound, cath lab systems and CT scanners. These technologies will enable cardiologists to view detailed images of the heart, to reduce radiation exposure for both patient and medical staff and to complete procedures faster. Clinicians use imaging for several electrophysiology and interventional procedures like stent implantation because it provides them information to gain deeper perspective and understanding of the condition of the heart and its functions.

Philips advanced imaging technologies and services will also be used in The Wisconsin Heart Hospital operating room (OR) during cardiac surgery, pacemaker implantation and other surgical procedures as well as outside the OR for diagnostic cardiac imaging, interventional cardiac imaging in stent planning and electrophysiology procedures.

Philips deep knowledge of cardiovascular care and extensive portfolio of best in class diagnostic, imaging and interventional products and services are further bolstered by its Cardiovascular Care Business Team. The Business Team, dedicated to collaborating with cardiologists and leading medical research institutions to develop advanced technologies and services, supports the cardiovascular community in its efforts to deliver effective and efficient patient care to meet both the quality and economic demands of today's healthcare environment. Meeting regularly with its global Advisory Board, the Team strives not only to understand the industry's needs but to help shape the systems of tomorrow to enable better patient diagnosis, treatment and outcome.

On October 4th, the Business Team will sponsor a CME-credited course with Duke University entitled, "The Revolution in Cardiac Imaging: Adapting to the Clinical Mindset." Featuring experts from around the world, the teleconference will provide listeners with information on the importance of cardiac imaging, cost effective testing and integration methods for the clinical practice. Interested parties can find more information about the program, or can register, at www.cardiacimaging.tv.

About Royal Philips Electronics:

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $30.1 billion (EUR 31.8 billion) in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, 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.philips.com/newscenter

ATTN Broadcasters: Philips b-roll (via beta copy, fiber transmission and satellite feed), is available 24/7 by calling ([phone]).

About The Wisconsin Heart Hospital:

The Wisconsin Heart Hospital is being created to offer the community quality, cost-efficient cardiovascular patient care that is focused on clinical excellence and patient service. It is a care delivery model that is current with the changing nature of health care, providing patients with quality, convenience, cost-effectiveness and better patient satisfaction. Given the hospital's single focus on cardiovascular care, the physicians will perform interventional procedures that are less invasive and are consistent with the latest technological advances in treatment. This type of treatment will result in a shorter recovery time for patients, reducing expenses and helping patients return to active, productive lives as quickly as possible.

The Wisconsin Heart Hospital will provide concentrated sources of information, care and support, rather than duplicating services, which will lead to efficient and cost-effective care.

For more information about The Wisconsin Heart Hospital, go to: www.twhh.org