Philips Steers Rear-Seat Automotive Entertainment Systems Into New Era Of Global Accessibility, Flexibility

PAL/NTCS Auto-Detect/Switch Feature Builds on Philips' Expertise in Consumer Electronics Digital Solutions

AMSTERDAM, Netherlands, Sept. 16 -- Royal Philips Electronics of the Netherlands (AXE: PHI; NYSE: PHG) today unveiled the latest addition to its line of products geared toward mobile entertainment applications. Featuring a new PAL/NTSC auto-detect/switch, the company's digitally based thin-film-transistor (TFT) video display module is the first-ever to automatically detect and switch between the world's two major video-signal standards -- NTSC and PAL. Easily incorporated into rear-seat automotive entertainment (RSE) systems, the module will provide flexibility and cost savings for OEMs and automotive integrators, enabling them to use a single RSE system regardless of the geographic region for which the car is intended.

Peter Hopper, CEO of Philips' Mobile Displays Systems Group, noted, "This latest addition to our offering of mobile display products extends our commitment to partnering with leading consumer and automotive OEMs to simplify integration of our technology. By leveraging Philips' expertise in consumer electronics to create a product that links seamlessly with multiple Philips products and allows them to be implemented for RSE applications, we're steering mobile displays into a new era of flexibility and functionality."

Consumer interest in mobile electronics is growing rapidly -- a market research study released last year by the Consumer Electronics Association projected that factory sales of mobile video and navigation products would exceed $500 million in 2003, compared to the $452 million sold in 2002, and an 85 percent increase over 2001's sales of $293 million. Moreover, a J.D. Powers and Associates study released in December revealed that 45 percent of consumers indicated they were either definitely or probably interested in buying a RSE system. Philips' new PAL/NTSC auto-detect/switch will enable these consumers to invest in a single system that can go with them should they, and their cars, relocate from one region to another -- extending the product's cost savings to the end user.

Philips' video display module is a 7" digital TFT with QVGA resolution. Its built-in TV decoder can also read a wide range of input signals (RBG-analog, CVBS, YUV and YC) to accommodate changing customer applications, and the display architecture's digital signal processor (DSP) significantly enhances picture performance compared to analog displays. Parameters such as color, tint, brightness and luminance are controlled via a single LIN or I2C data-control protocol. This feature helps extend the cost savings afforded by the PAL/NTSC auto detect/switch, which requires no additional software or user interface to activate. Other features include wide viewing angles, high luminance (450 cd/m2), a self-heating backlight and an integrated inverter.

Engineering samples of the video display module are available on request. The product will be available in production quantities in the first quarter of 2004.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 170,000 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.philips.com/newscenter.