Lumileds Lighting Poised to Accelerate Advances in Solid-State Lighting Technology

SAN JOSE, Calif.--Aug. 1, 20055, 2005--Lumileds Lighting is uniquely positioned to accelerate solid-state lighting technology advancements as a result of the agreement for Royal Philips Electronics to purchase Agilent Technologies' interests in the company.

"Throw away last weeks charts that show expectations for LED performance," said Mike Holt, CEO of Lumileds. "Increased access to and closer working relationships with the world class materials, semi-conductor and lighting technology organizations in Philips will allow us to advance the performance of LEDs and our LUXEON(R) products in ways not imagined just a month ago."

"Lumileds success and value is a direct result of our passion and commitment to our technology leadership, products and customers. The freedom Agilent and Philips have given us to do what we do best as a solid-state technology company will continue even though the makeup of our board will change," said Holt. "The entire process will be transparent to our customers and they will remain unaffected as the company moves forward."

The acquisition is structured to allow Lumileds to continue operating as an independent business group, within the Philips Lighting organization, supporting its customers as it has since the company's inception. Customers will continue to work directly with Lumileds and its authorized distributors including Future Electronics for all their product needs.

Lumileds manufacturing operations in San Jose and Penang, business offices, sales, marketing, engineering and R&D organizations remain in place and continue to serve the needs of customers around the world.

Lumileds LUXEON(R) high-power LEDs continue to lead the industry in light output, reliability, lifetime, value and technical innovation. LUXEON(R) has become the LED of choice for lighting applications, camera flash, signaling, backlighting, automotive applications and is enabling never before possible applications in the consumer, automotive and medical arenas.

Completion of the transaction is subject to the gaining of regulatory approval. It is anticipated that the transaction will be closed in the fourth quarter of 2005.

About Lumileds Lighting

Lumileds Lighting is the world's leading manufacturer of high-power LEDs and a pioneer in the use of solid-state lighting solutions for everyday purposes including automotive lighting, camera flash, LCD displays and televisions, portable lighting, projection and general lighting. The company's patented LUXEON Power Light Sources are the first to combine the brightness of conventional lighting with the small footprint, long life and other advantages of LEDs. Lumileds also supplies core LED material and LED packaging, and manufactures billions of LEDs annually. The company is headquartered in San Jose, California, with operations in the Netherlands, Japan and Malaysia and sales offices throughout the world. For more information, call Lumileds at 408-435-6111 or visit www.lumileds.com.

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 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,500 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.