Philips Sells TechnoFusion to International Rectifier

    EL SEGUNDO, Calif. & AMSTERDAM--April 15, 2002-- International Rectifier Corporation , based in the U.S., and Royal Philips Electronics (AEX:PHI) of the Netherlands, today announced the sale of TechnoFusion GmbH, a leading maker of power generation systems for automotive electronics, to International Rectifier (IR). Completion of the USD 50 million cash transaction is planned to take place during the current quarter, subject to closing conditions including regulatory approval.
    TechnoFusion is based in Krefeld, Germany, with a sales office near Detroit, U.S., and is a wholly owned subsidiary of Philips. TechnoFusion manufactures high-quality integrated regulator micro-electronic modules for the global automotive industry. Its products are used in advanced automotive alternators. With a 2001 turnover of USD 50 million, TechnoFusion employs approximately 375 people worldwide. Its customers include Daimler-Chrysler, Visteon, Denso and Valeo, among other major automotive suppliers.
    IR is a world leader in power management technology. The transaction reflects the company's focus on proprietary power management technology for target markets.
    Alex Lidow, Chief Executive Officer of IR, said, "Automotive applications are a key growth segment for IR, and TechnoFusion will add a new dimension to our leadership with advanced automotive power architectures, highly skilled staff and an excellent customer base."
    Ivo Jurek, Vice President of Automotive at IR, commented, "This acquisition will provide an excellent fit with our existing business and put us in a very strong position to address some of the best market opportunities in the field of power management."
    TechnoFusion lies outside of Philips' core business, and the divestment is intended to secure its future development.
    Tom Verbeek, head of Philips Corporate Investments, said, "We are pleased to have found a strategic buyer, well-suited to exploit the strengths of this business in the automotive market. TechnoFusion is one of approximately thirty non-strategic businesses that are being prepared for divestment or merger during the next 18 months, generating, as announced, an estimated EUR 1 billion."
    International Rectifier is a world leader in power management technology that improves functionality, speed, compactness and portability in information technology and other end products. IR's analog ICs, advanced-circuit devices, power systems and components enable Internet hardware to gain speed and reliability, allow portable electronics to run longer off a single charge, improve automotive fuel efficiency, and cut energy consumption in home appliances and industrial motors. The company is the pioneer and market leader in the $4 billion power MOSFET industry, and over 20 companies are licensed under its power MOSFET patents. IR serves market leaders around the world, and more than half its revenue comes from outside the United States.

    Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 37.9 billion in 2000. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 192,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com.