TCL & Alcatel Mobile Phones Selects Philips Nexperia System Solution for Next-Generation GSM/GPRS/EDGE Mobile Phones.

SAN JOSE, Calif. -- Royal Philips Electronics (NYSE:PHG)(AEX:PHI) announced today that TCL & Alcatel Mobile Phones has selected Philips Nexperia(TM) Cellular System Solution 6120 to deploy highly reliable, cost-effective EDGE-enabled mobile phones for the mid- and high-range markets. As the mobile multimedia market grows, more and more mobile operators around the world are considering EDGE implementation in their mobile networks in order to attract new subscribers and to generate new revenue streams.

"EDGE provides an attractive option for operators looking to bring in additional revenue through such high-speed wireless data applications as real-time audio and video streaming, digital photo imaging, MP3 music capabilities, MPEG4 video playback and interactive games," said Allen Nogee, principal analyst, wireless technology, InStat/MDR. "EDGE-enabled phones are expected to account for nearly a quarter of GSM handsets produced worldwide by the end of 2005 and close to 50 percent by 2007."

By selecting technology from Philips, TCL & Alcatel Mobile Phones will extend its future-proof approach for the GSM/GPRS market and offer its mobile infrastructure customers an advanced and efficient EDGE solution.

"Our working collaboration with TCL & Alcatel Mobile Phones combines its deep technical understanding in mobile communication infrastructure and mobile phones with the system and chip know-how of Philips. This allows TCL & Alcatel Mobile Phones to offer excellent, high performance solutions for GSM/GPRS/EDGE phones," said Peter Baumgartner, senior vice president and general manager Global Market Segment Mobile & Personal, Philips Semiconductors.

Philips' market leading Nexperia Cellular System Solution comprises Philips Nexperia Cellular Baseband (PCF5213), RF Transceiver (UAA3587), EDGE Power Amplifier (BGY284E), power management unit (PCF50603), image processor (PNX4000), Bluetooth module (BGB204), FM Radio (TEA5761UK) and integrated discretes. It supports worldwide GSM roaming as well as GPRS and EDGE class 10 featuring four downlink channels and two uplink channels. Its protocol stack is completely validated by IOTs (Inter-Operability Tests).

In addition to its high-speed data capabilities, the ARM9(TM)-based system solution features fully integrated software algorithms from Philips Software. It includes the revolutionary LifeVibes(TM) Voice Hands Free acoustic echo canceler and noise reduction algorithm for speaker phones and the LifeVibes Multimedia Video Encoder Service and Video Player Service (VPS) that enable the capture playback and streaming of real-time 3GPP and MPEG-4 audio and video files. The VPS also enables the playback of MP3 and AAC-LC audio files. Other functionalities include JTWI compliant JAVA, software polyphony, DRM, hardware security, Mono Interference Cancellation (also known as SAIC), WAP/MMS and Bluetooth 1.2 with a large set of profiles.

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 $32.8 billion (EUR 29 billion) in 2003. With activities in the three interlocking domains of healthcare, lifestyle and technology and 165,600 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.semiconductors.philips.com.

Nexperia and LifeVibes are registered trademarks of Koninklijke Philips Electronics N.V. All other registered trademarks are properties of their respective owners.