UNIVERSITY OF EDINBURGH MAKES FURTHER INVESTMENT WITH NEC PHILIPS UNIFIED SOLUTIONS

Hilversum, The Netherlands - September 19, 2006 – One of the UK's most prestigious universities, the University of Edinburgh, has extended its relationship with NEC Philips Unified Solutions by purchasing an IP server blade, the UNIVERGE SV7000 and IP DECT technology, as part of the first phase of a complete migration to a Voice over Internet Protocol (VoIP) communications infrastructure. The server will be integrated with the existing SOPHO iS3000 server.

The university is currently using a hybrid communications platform that provides mixed IP telephony and traditional systems, which was implemented to enable a seamless transition to IP telephony. The existing SOPHO iS3000 server runs nearly 10,000 extensions throughout the university, and the new UNIVERGE SV7000 server has been implemented as a remote server in the Kings Building running 30 extensions.

Murray Clayton, Telecoms and Security Systems Manager at the University of Edinburgh, explains, “As part of the first phase of the migration we have implemented the IP server, which has been running for the last three months across two sites. We have been pleased with the results and are now in a position where we can look to further extend our use of VoIP technologies, including IP DECT handsets, to a larger user group increasing the number of extensions to between 800 and 1000 across the University.”

The first phase of the migration has been extremely successful. The university has realised the benefits that they hoped to achieve when the process began, including the ability to work remotely and improved accessibility for employees. Edinburgh has the largest university in Scotland with over 200 buildings, and therefore the ability of the DECT handsets to work on any network enables staff to move between buildings with no disruption.

Clayton comments, “The iS3000 and SV7000 are both incredibly flexible and compatible servers, and therefore we are able to achieve a very smooth migration to an IP-based platform at a pace which suits us. Users are able to carry their DECT handsets with them at all times as they can be used over any IP network, including a broadband connection at home and we can therefore take advantage of the benefits of homeworking. In the future we also hope to take advantage of fixed-mobile convergence, to extend this flexibility even further.”

The University of Edinburgh has been a customer of NEC Philips Unified Solutions for the past 17 years, and envisages the full migration to take another 15 years. Commenting on the recent joint venture of Philips and NEC, Clayton comments, “We have been a customer for a very long time, and feel that the relationship with NEC can only enhance the product range, making it even stronger than it currently is.

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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. 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-phillips.com.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) 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. 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 150,000 people worldwide and had net sales of approximately 4,825 billion yen (approx. $41.2 billion) in the fiscal year ended March 2006. 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 30.4 billion in 2005. 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.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.