NEC PHILIPS STRENGTHENS DANISH CHANNEL SALES WITH TRANSFER OF DIRECT SALES ACTIVITY TO NW GRUPPEN

Hilversum, The Netherlands –  March 31, 2008  –  NEC Philips Unified Solutions (NEC Philips) today announced the transfer of its Danish direct sales and service activities to NW Gruppen, a leading provider of ICT solutions in Denmark, and the formation of a dedicated channel team in Copenhagen to support the company’s indirect sales activities in the region.

In addition, NEC Philips and NW Gruppen have signed a long-term distribution agreement for the supply of NEC Philips systems, applications and services. Financial details were not disclosed.

The reshaping of its activities in Denmark is in line with NEC Philips’ strategy to grow and expand its Pan EMEA market coverage through indirect channel partners.  Adopting a fully indirect distribution model in Denmark enables NEC Philips to address a larger number of customers with its expanding portfolio of systems and applications.

NW Gruppen and NEC Philips have been cooperating successfully over past years in serving customers in Denmark. Customers will benefit from the services and solutions offered by the NW Gruppen, an organisation that combines expertise in voice, data and converged solutions, applications and services with extensive system integrator capabilities and expertise. With offices spread over Denmark the number of service points for customers will also be significantly increased.

“This agreement follows from the excellent cooperation we have had over recent years with NW Gruppen and is part of our strategy to extend market reach through indirect channels”, states Lex de Gier, Managing Director International Channels at NEC Philips Unified Solutions. “Our channel-centric approach allows us to focus on the development of new systems and applications which will support the further growth of our business in this region”, he adds.

Preben Kirkeby, Managing Director of NW Gruppen: “We see an increasing demand from customers for solution providers that combine best of class products from various technological areas and are able to provide total customer solutions.  We are very pleased to be able to meet this growing demand by this significant expansion of our organisation, drawing on the resources and expertise of NEC Philips, a well-respected vendor in the global enterprise communications market.”

NEC Philips will continue to support all its channel activities in the region with a dedicated team based in Copenhagen.
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About NEC Philips Unified Solutions

NEC Philips Unified Solutions is a leading provider of comprehensive communications solutions to organisations of all types and sizes. NEC Philips is part of NEC’s global enterprise communications activity, ranked nr 1 in worldwide enterprise communications. Its advanced IP-based solutions unify products, applications and services, enabling organisations to communicate and collaborate more effectively, efficiently and reliably.  As Microsoft Gold Partner, NEC Philips specializes in providing real-time Unified Communications (UC) and collaboration solutions. NEC Philips Unified Solutions is headquartered in Hilversum, the Netherlands, and serves its customers through a global network of sales organisations and business partners. For more information www.nec-philips.com.

About NW Gruppen

NW Gruppen is an ICT solutions provider specialized in providing customized telephony and data solutions to private and public organizations throughout Denmark.  Founded in 1996 the company serves its loyal and expanding customer base from the company’s headquarters in Hedensted, its branch office in Copenhagen, as well as from service points in North and West Denmark. In order to serve its markets with profound expertise and innovative solutions, NW Gruppen selects the best technology partners and ensures its employees are educated at specialist level. NW Gruppen is an NEC Philips Platinum partner and Extreme Networks Gold Partner. For more information: www.nw.dk.
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Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NEC and Philips and certain plans and objectives of both companies with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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Signing distribution agreement - front right: Mr. Preben Kirkeby, NW Gruppen / front left: Mr. Paul Kievit, CCO NEC Philips Unified Solutions / back right Mr. Johnny Frost, NEC Philips Unified Solutions Denmark / back left Mr. Thomas Rinne, CFO NEC Philips Unified Solutions