Amsterdam, The Netherlands – In a meeting with investors and financial analysts today, Royal Philips Electronics (AEX: PHI, NYSE: PHG) will provide an update on how its consumer lifestyle businesses have and will continue to add value and sustainable growth to the company. Philips will also elaborate on the formation of the new Philips Consumer Lifestyle sector as per January 1, and this new, integrated sector will help Philips achieve the targets set as part of its “Vision 2010” strategic plan, which was communicated in September.

In separate presentations, the chief executives of both the Domestic Appliances & Personal Care (DAP) division as well as Consumer Electronics (CE) will highlight characteristics of the portfolios and business models of their respective businesses, elaborate on past business performance and detail why both businesses are in a strong position for the future. Rudy Provoost, Chief Executive Officer of CE, will focus on explaining how the business’ asset-light strategy and a focus on design and relevant innovation has allowed it to deliver consistent performance over the past twelve quarters and will confirm that the division is on track to achieve an EBITA target of around 3% for 2007. Mr. Provoost will also confirm that all businesses within CE continue to show year-on-year improvement, except for Connected Displays, where margin pressure remains high, particularly in North-America.

Andrea Ragnetti, Chief Executive Officer of DAP, will focus on the fundamentals of the strong performance of its businesses and the key drivers of the sustainable growth in sales and margins DAP has achieved. Mr. Ragnetti, who will become CEO of Philips Consumer Lifestyle sector effective January 1, will also elaborate on the strong prospects of Consumer Lifestyle going forward. Combining key competencies of DAP and CE in one consumer lifestyle powerhouse and addressing a more sizeable overall market than before by entering new value spaces, the Consumer Lifestyle sector is excellently positioned to grow above market levels and deliver overall EBITA improvement. Mr. Ragnetti will confirm that the formation of Consumer Lifestyle will lead to cost synergies of around EUR 150 million to EUR 200 million a year by 2010.

Presentations will begin at 10:00 AM (CET), and can also be followed via webcast. Please visit www.philips.com/investor for today’s agenda, presentation and webcast, and www.newcenter.philips.com for more details about the “Vision 2010” plan.

For more information, please contact:
Joon Knapen
Philips Corporate Communications
Tel.: +31 20 59 77477
Email: joon.knapen@philips.com