NEW ADVANCED KEY SOLUTION CONFIRMS PHILIPS’ DRIVE TOWARDS SME'S

HILVERSUM, JULY 1, 2004 – Royal Philips Electronics’ business unit Business Communications (PBC) has strengthened its product offer with the introduction of SOPHO IPK, a new key solution targeted at small and medium sized companies and branch offices.

SOPHO IPK complements Philips’ portfolio of enterprise communication platforms, which includes the SOPHO iS3000 and SOPHO 2000 IPS series targeted at the medium and high end of the market. The new system is the first of products with which Philips is to conquer the small and medium market and confirms the company’s thrust to expand market position through indirect channels. Being easy to install and maintain, SOPHO IPK offers an extremely powerful proposition for resellers to develop business in the high volume markets for smaller systems.

SOPHO IPK is a highly versatile system offering the choice of traditional circuit-switched telephony, IP telephony, or a combination of both, all within a single system. It allows companies to take advantage of all the benefits of IP Telephony, when and where needed. Because the system can function within a hybrid network, organisations can continue to use their existing equipment while they phase in IP telephony.

A stand-alone SOPHO IPK supports up to 120 extensions and 64 trunks, which may be TDM and/or IP. The system has extensive networking capabilities, supporting up to 255 nodes. It can be networked with other SOPHO IPK systems, with SOPHO iS3000 and SOPHO 2000 IPS systems, and with systems from other brands. In a network, functions such as Voicemail, Automated Attendant and billing can be centralized. SOPHO IPK uses the well-known SOPHO Dterm series of business telephones and supports Philips’ SOPHO application suites, such as Unified Messaging. Philips will be expanding this portfolio with applications and all-in-one solutions suited to the needs of smaller enterprises.

With this advanced system, offering more than 200 telephony features, including Computer Telephony Integration (CTI), least-cost routing (LCR) and uniform call distribution, Philips and its resellers are in an excellent position to extend market reach.

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 29 billion in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 165,300 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, medical systems and communication solutions. News from Philips is located at www.philips.com/newscenter.