Philips reveals new design innovations at the 2006 Simplicity Event

Simplicity-led concepts showcase the company’s ambition to improve quality of life and well-being

Tuesday, October 03, 2006 - London, United Kingdom – Royal Philips Electronics (NYSE:PHG, AEX:PHI) today unveiled new and innovative concepts based on its ‘sense and simplicity’ brand positioning at the 2006 Philips Simplicity Event at London’s ExCeL exhibition centre. Philips also revealed at the event, a sample of potential products nearing market readiness that have evolved from earlier Simplicity concepts.



The 15 new simplicity-led design concepts from across Philips’ healthcare, lifestyle and technology portfolio are explorations that indicate ways to improve the quality of life and contribute to a more healthy lifestyle. The concepts build on the company’s strategy of being a more market-driven organization, and highlight Philips “sense and simplicity” vision to design and deliver solutions for the next three to five years that are aligned with people’s lives, and provide meaningful benefits from technology.



Andrea Ragnetti, Chief Marketing Officer of Philips and Chief Executive Officer of Philips Domestic Appliances and Personal Care commented: “This year’s Simplicity Event demonstrates the progress we are making across our company in the design and development of products that meet the everyday needs of consumers. Our focus on helping consumers achieve a healthy lifestyle reflects the increasing personal responsibility we all have to improve and manage our own health. Our simplicity-led design approach means that we can deliver solutions that fit with people’s lives and allow them to benefit from new technology and innovations.”



Research undertaken by Philips among consumers worldwide has shown that achieving and managing a healthy lifestyle is increasingly important. Worldwide life expectancy is rising steeply, with estimates showing 19 million people over 85 by 2050 compared with three million in 1994 (Source: U.S. Census Bureau). The resulting rise in healthcare costs will shift the focus of clinical healthcare from curing to prevention and the overall responsibility for taking care of health will shift from governments and the medical community to the individual. Already consumers are seeking new, and easier ways to achieve this.



Under the ‘healthy lifestyle’ theme, Philips produced the concepts under five sub-themes that are part of improving well-being and the quality of life for both the individual and the family. The first theme looked at concepts that care for your body – sensorial therapies to rejuvenate and energize the body. The second theme addressed concepts that listen to your body including motivating health rituals to learn about one’s body and act upon. The third theme was move your body including ways to stimulate play and challenging exercises to get active and stay fit. The fourth theme, relax your mind, covered expressive moods and atmospheres to engage and relax the mind. The fifth theme was share experiences addressing spontaneous ways to share moments and mementos with family and friends.



Each of the design concepts are demonstrated in ‘real-life’ and home-like environments to allow visitors to experience them and provide feedback. This will be used to generate dialog and debate that can help make improvements and move the concepts toward business opportunities in the next three to five years.



Philips will take the 2006 Simplicity Event to Hong Kong in March 2007.

Backgrounders

* Philips Simplicity Event 2006: www.newscenter.philips.com/about/news/press/article-15522.html
* Philips’ journey to simplicity: www.newscenter.philips.com/about/news/press/article-15523.html


Photo’s

* Photo’s Simplicity Event 2006: www.presslink.nl/philipssimplicity

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 125,500 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips 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.

Contact Information

Anna Quarrell

Philips Corporate Communications

Royal Philips Electronics of the Netherlands

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