Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced that FEI Company (NASDAQ: FEIC), in which Philips currently owns approximately 24.8% of the issued share capital, has filed a registration statement on Form S-3 with the United States Securities and Exchange Commission (SEC) relating to the planned secondary offering of 8,406,007 common shares in FEI. As a result of this transaction, Philips expects its share holdings in FEI will be reduced to zero.

FEI designs and manufactures a variety of electron microscopes and nanotechnology tools and components.

All of the shares included in this offering would be offered by Philips Business Electronics International B.V. Philips would receive all of the net proceeds from the offering. The actual number of FEI shares to be offered by Philips will depend upon prevailing market conditions at the time of the offering.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. The contemplated offering remains subject to a number of conditions, including the circulation of a preliminary prospectus and the declaration by the SEC of the effectiveness of FEI's registration statement relating to the offering.

These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.