PHILIPS NOTIFIES FINANCIAL AUTHORITIES OF INCREASE IN SHARES HELD
Amsterdam, The Netherlands - Today, Royal Philips Electronics (NYSE: PHG, AEX: PHI) notified the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten or 'AFM') that the company's holding in Philips shares has exceeded 5 percent of Philips' total outstanding shares. Philips informed the AFM in accordance with Dutch law, which states that shareholders are to inform the AFM whenever their shareholding in a Dutch listed company exceeds the 5 percent threshold.

At the end of 2004, Philips held approximately 34.5 million Philips shares, or approximately 2.6 percent of the company's outstanding shares. On January 27, 2005, Philips announced the start of a share repurchase program for capital reduction purposes and to hedge long-term incentive and employee stock purchase programs. As per today, Philips holds approximately 65.8 million Philips shares.