The Netherlands - Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced the sale of 30 million shares of common stock in NAVTEQ Corporation (NYSE:NVT). All of the shares included in this offering were sold by Philips Consumer Electronic Services B.V., a wholly-owned subsidiary of Philips. The sale will provide Philips with gross proceeds of approximately EUR 870 million. As a result of this transaction, the company will book a non-taxable gain of approximately EUR 680 million in its earnings for the second quarter of 2005.

This offering by Philips of NAVTEQ shares was announced on March 29, 2005, and priced on May 4, 2005 at USD 37,50 per share of common stock. Upon closing of the transaction, which is scheduled for Tuesday, May 10, 2005, Philips will still own approximately 3.5 percent of NAVTEQ's outstanding share capital. Philips has granted the underwriters a 30-day option to purchase up to approximately 3.1 million additional shares of common stock to cover over-allotments, if any. If the over-allotment option is exercised in full, it will provide Philips with additional gross proceeds of approximately EUR 90 million and a non-taxable gain of approximately EUR 70 million. As a result of this Philips' interest in NAVTEQ would then be reduced to zero. The over-allotment option expires June 3, 2005.

Forward-looking statements
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.