Philips Unveils New Semiconductor System Solutions to Provide High Quality and Intuitive Features in Set Top Boxes and Home Media Devices

Leading up to CES in Las Vegas, the world's largest annualtradeshow for Consumer Technology, Royal Philips Electronics(NYSE:PHG) (AEX:PHI) today announced two semiconductor systemsolutions that will enhance set top box (STB) technologies. These willensure next generation consumer devices are easy to use for theConnected Consumer and allow for a fast time-to-market anddifferentiating features for Consumer Electronics (CE) manufacturers.The announcements include the STB22x, a new family of STB platformsand the introduction of a Digital Living Network Alliance (DLNA)compliant Digital Media Adaptor (DMA) reference design based on theNexperia PNX1500 media processor.

"As STB technology is in such a competitive consumer environment,there is a need for advanced technology that is easy to integrate intothe consumer device," said Michelle Abraham, principal analyst,In-Stat. "We are seeing a greater need for HD and dual-input,dual-output STB solutions for the increasingly feature rich set topboxes. With the STB market reaching 85 million units in 2005 thedemand for IC solutions such as the STB22x from Philips Semiconductorswill only increase."

"Philips STB semiconductor system solutions and reference designsoffer cost optimized, high performance solutions with shorttime-to-market," said Menno Kleingeld, marketing director, PhilipsSemiconductors. "Today's announcements demonstrate the dedication todrive innovation in STB devices. The introduction of the STB22xplatform provides CE makers with a choice of easy and fast toimplement products that reduce total cost of ownership."

Driving the STB Market with New Family of Complete STB Platforms

Philips has developed the STB22x, a new family of complete STBplatforms that bring together a validated turnkey STB design, thirdparty software and world class support. It will allow CE makers toproduce low cost STBs for cable, satellite and terrestrial broadcastwith fast time-to-market.

The STB22x offers support for standard definition Personal VideoRecorder (PVR), dual-input dual-output, MPEG2 and MPEG4, and alsointegrates USB2.0 OTG and picture improvement features into the sourcedecoder, to create a streamlined product. The STB22x family will beextended in the middle of 2006 with a High Definition (HD) sourcedecoder to support H.264 HD and WM9 HD streams.

Enhancing Nexperia Home Media Devices for Seamless Content Sharing

Next generation Connected Consumers expect to seamlessly accessdigital media, such as music, video and images anywhere, anytimethroughout the home from different devices. To support home consumerdevice manufacturers in meeting these needs, Philips has integratedthe Nexperia PNX1500 media processor into a DLNA compliant DMAreference design, based on a partnership with leading software vendorMediabolic. This reference design is available as a stand alonesolution or can be integrated into TV designs.

Availability

All products will be available globally. The Nexperia DLNAcompliant DMA reference design is available now and the STB22x will beavailable from June 2006. Additional information can be found atwww.philips.com.

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'slargest, with sales of EUR 30.3 billion in 2004. With activities inthe three interlocking domains of healthcare, lifestyle and technologyand 161,100 employees in more than 60 countries, it has marketleadership positions in medical diagnostic imaging and patientmonitoring, color television sets, electric shavers, lighting andsilicon system solutions. News from Philips is located atwww.philips.com/newscenter.

Nexperia is a trademark of Koninklijke Philips Electronics N.V.