NEC PHILIPS UNIFIED SOLUTIONS: UNIFYING FOR GROWTH IN COMMUNICATIONS

Hilversum, The Netherlands, April 12, 2006 – NEC Corporation and Royal Philips Electronics have completed the transaction regarding their joint venture in enterprise communications as announced in November 2005. With NEC holding 60% and Philips holding 40% of shares, the new company, NEC Philips Unified Solutions, has commenced operation as per April 3rd.

At a special Press briefing held today at the company’s headquarters in Hilversum, The Netherlands, Ad Ketelaars, CEO of NEC Philips Unified Solutions, mapped out the company’s ambitions.

Combining NEC’s strong technology base and market position in Asia Pacific and North America with Philips’ strong market presence in EMEA (Europe, Middle-East and Africa) provides sustainable competitive advantages and enables NEC Philips Unified Solutions to extend market reach and its share of the communications market.

The joint venture is part of NEC’s global strategy to achieve over 10% share of the enterprise communications market worldwide. To this end, NEC is investing significantly in the development of platforms and applications that can be sold on a global scale, as well as investing further in its routes to market.

Focussing on the EMEA market, NEC Philips Unified Solutions addresses the needs of organisations of all types and sizes, with the following spearheads:

A dedicated division addressing the SMB (Small & Medium Businesses) channel is in place to further expand the existing network of reselling partners. Business partners can look forward to an extended product portfolio, to be sold in Europe under the Philips brand name. The Business Partner Program brings all essentials together - products, programs, people and processes - to help business partners offer best-in-class communication solutions to SMB customers.

Enterprises will benefit from the combined R&D activities and resulting portfolio of platforms and applications. This results in the widest possible choice for IP-based communications, incorporating latest voice and data technologies available to the modern telecom world. Existing customers can continue to rely on the proven SOPHO iS3000 range of systems, which remains fully supported and enhanced with new functionality addressing latest market requirements.

Recognising the shift towards integrated solutions and services, a dedicated Solutions division has been established, serving clients on a global scale with integrated applications such as those around UNIVERGE. In addition to system integration and around-the-clock (managed) services, the offered range includes solutions like Microsoft’s LCS (Live Communications Server), available thanks to a recently announced partnership with Microsoft.

By unifying the strengths of NEC and Philips, unifying voice and data communications and by unifying platforms, applications and services, NEC Philips Unified Solutions has set out to deliver on its promise “Unifying enterprise communications”.

About NEC Philips Unified Solutions
NEC Philips Unified Solutions is a leading provider of comprehensive communications solutions to organisations of all types and sizes. Established in 2006 as a joint venture of NEC Corporation and Royal Philips Electronics, the company draws on more than 50 years experience in providing communication systems, applications, networks and services to customers worldwide. NEC Philips Unified Solutions is headquartered in Hilversum, the Netherlands, and serves its customers through a global network of sales organisations, business partners and value-added resellers. For more information: www.nec-philips.com.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of 4,855 billion yen (approx. $45 billion) in the fiscal year ended March 2005. For additional information, please visit www.nec.com.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) 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 161,100 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.

For more information, please contact:
Robert van Amerongen
NEC Philips Unified Solutions
tel +31 35 689 1521
e-mail robert.van.amerongen@nec-philips.com

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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On April 12 a special NEC Philips Unified Solutions opening ceremony and celebration took place in Hilversum, attended by more than 450 employees, customers, distribution partners, suppliers, press and other relations. The event was planned to coincide with a visit of a delegation of top executives of NEC Corporation to Philips and to NEC Philips Unified Solutions. To receive all guests and facilitate viewing the revealing of our new company logo, a large transparent marquee was constructed on the parking area on our premises. The photo collage gives a good impression of the event.

Speakers were Ad Ketelaars, Mr Saburo Takizawa, Executive Vice President of NEC Corporation, and Mr Gottfried Dutine, Executive Vice President of Royal Philips Electronics (right hand lower corner photo). Both NEC and Philips spokesmen underlined their belief in the new venture and explained the attached ambitions, the new logo was spectaculary revealed, accompanied by fireworks and drums.

Earlier that afternoon a successful press briefing had been held in support ot the press release issued. The left hand lower corner photo in the collage was taken the next day when the NEC Philips Unified Solutions Supervisory Board gathered for a meeting.