Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today that it has completed its acquisition of Intermagnetics General Corporation (“Intermagnetics”) (NASDAQ: IMGC). Intermagnetics develops, manufactures and markets high-field superconducting magnets used in Magnetic Resonance Imaging (MRI) systems and is viewed as the technological innovator in this market. Intermagnetics also provides specialized MRI compatible patient monitoring devices and Radio Frequency (RF) coils that are predominantly supplied to hospitals and independent imaging centers.
Under the terms of the agreement, which was announced June 15, 2006, Philips acquired Intermagnetics for USD 27.50 per share or a total equity value of approximately USD1.3 billion (EUR1 billion), which was paid in cash upon completion. As a result of the transaction, Intermagnetics, which employs approximately 1150 people, will be financially consolidated with immediate effect within the Medical Systems division of Royal Philips Electronics. Intermagnetics’ headquarters in Latham, New York, will become the global headquarters of Philips’ enlarged Magnetic Resonance business.
The acquisition of Intermagnetics will strengthen Philips’ position in the key market of Magnetic Resonance Imaging. It will also allow Philips to participate in the fast growing market for RF coils, significantly rationalize its supply chain, and enhance its competitive position. As announced on June 15, 2006, Philips anticipates the transaction to be accretive to its operating margin towards the end of 2007. Philips estimates it will take purchase-accounting and related acquisition charges of approximately EUR 75 million in the fourth quarter of 2006 related to this transaction.

For more information, please contact:
Jayson Otke
Philips Corporate Communications:
Tel: +31 20 59 77215
Email: jayson.otke@philips.com