Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today that it has completed the cancellation of in total 86,472,494 shares which have been acquired pursuant to the share repurchase program the Company initiated in July 2006. All shares were acquired during the period starting July 17, 2006 up to and including December 19, 2006 at an average repurchase price of EUR 27.37 per share. As such, Philips has completed approximately EUR 2,367 million of the EUR 4 billion return to shareholders announced on August 3, 2006.

In connection with this share capital reduction, Philips has notified the Netherlands Authority for the Financial Markets (AFM) that it no longer holds 5 per cent of its own shares. As a result of the cancellation of shares, Philips’ issued share capital as per today amounts to 1,142,826,763 shares of which 36,231,587 shares are held by Philips to cover long-term incentive and employee stock purchase plans.

For more information, please contact:
Jeannet Harpe
Philips Corporate Communications:
Tel: +31 20 5977199
Email: jeannet.harpe@philips.com

Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced it has obtained full ownership of Philips Lumileds Lighting, the world leader in high-power light emitting diodes (LEDs) and pioneer in LED technology for every day purposes.

Philips acquired Agilent LED International’s stake in Lumileds last year, and has now acquired the remaining 3.5% of Lumileds share capital from Lumileds’ employees and management. The 3.5% stake was related to an employee stock option program at Lumileds which has now been replaced by a new incentive program. A one-time charge of approximately EUR 8 million will be taken in the financial results for the fourth quarter 2006.

“In the last year we have made tremendous progress in aligning Philips’ and Lumileds’ business and strategy to further strengthen our position in the fast growing, emerging solid state lighting market,” says Theo van Deursen, CEO of Philips Lighting. “Philips now owns the entire new value chain, from technology expertise to in-depth customer knowledge, which provides us with a real competitive edge.”

For more information, please contact:
Jeannet Harpe
Philips Corporate Communications:
Tel: +31 20 5977199
Email: jeannet.harpe@philips.com