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.

As of the close of business on September 7, 2006, Philips held approximately 61.5 million Philips shares, or approximately 5.0 percent of the company's outstanding shares. On July 17, 2006, Philips announced the start of a EUR 1.5 billion share repurchase program for capital reduction purposes.