PHILIPS GENERAL MEETING OF SHAREHOLDERS APPROVES RE-APPOINTMENT OF MANAGEMENT, SUPERVISORY BOARD MEMBERS AND PROPOSAL FOR DIVIDEND PAYMENT IN 2007

Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced that the Annual General Meeting of Shareholders, held in Amsterdam on March 29, has approved the re-appointment of Mr. Gerard Kleisterlee, President & CEO, for four years, effective April 1, 2007.

The General Meeting of Shareholders also approved the re-appointment of Dr. Gottfried Dutiné, Executive Vice-President of Royal Philips Electronics and a member of the Board of Management for four years effective April 1, 2007. Mr. Steve Rusckowski, CEO of Philips Medical Systems, was appointed by the General Meeting of Shareholders as a member of the Board of Management, effective April 1, 2007.

Furthermore, Mr. Heino von Prondzynski was appointed by the General Meeting of Shareholders as a member of the Philips Supervisory Board, while Mr. Jan-Michiel Hessels, Mr. Cees van Lede and Mr. John Munro Thompson were re-appointed as members of the Supervisory Board. All appointments to the Supervisory Board have become effective as of today, March 29, 2007.

The General Meeting of Shareholders also approved Philips' proposal to increase the annual dividend payment in 2007 to EUR 0.60 per share, compared with EUR 0.44 in 2006. Mr. Pierre-Jean Sivignon, Chief Financial Officer, explained: "With the substantial progress that has been made in stabilizing and improving the performance of the company we believe that it is appropriate at this time to increase the payout ratio to 40%-50%, which is an increase from 25%-35%. The measure is based on continuing net income, meaning recurring net income from continuing operations, so excluding non-recurring items."