Philips one of top climbers in brand value - Interbrand

Friday, July 28, 2006

Amsterdam, The Netherlands– Royal Philips Electronics (NYSE:PHG, AEX:PHI) was one of the largest gainers in brand value in the annual ranking of the top 100 global brands by leading brand consultant, Interbrand. Philips had the largest increase in the electronics sector, gaining 14% to an estimated brand value* of USD6.7 billion. Its ranking in the Interbrand list of the world’s most valuable brands increased to 48th spot from 53rd in 2005 and 65th in 2004.



Andrea Ragnetti, Philips Chief Marketing Officer, said the growth in brand value demonstrated that Philips’ transformation into a market-driven healthcare, lifestyle and technology company was showing its merits. “The improved Interbrand ranking confirms that our brand promise ‘sense and simplicity’, which is also the framework for our future growth, is making a difference to the way the world sees and experiences Philips, and is reinvigorating faith in the Philips brand,” he said. “Our commitment and presence in the growing healthcare market, which promises to be an engine for future economic growth, has also increased recognition of the brand strength and value,” he added.



Jürgen Häusler, CEO Interbrand Zintzmeyer & Lux said that Philips’ 14% growth in brand value reflected the company’s success in managing the brand. “Philips clearly understands the importance of its brand, which supports the vision of transforming Philips into a healthcare, lifestyle and technology company. In this context the thorough management of a strong master brand, communicating the same values across a highly diversified product portfolio in a variety of countries, is of utmost importance,” he added.

Information on Interbrand’s top 100 global brands is available at www.interbrand.com

More information and news about Philips is available at www.philips.com/newscenter

Philips’ image library is available at www.newscenter.philips.com/photolibrary

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 158,000 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

Philips ‘sense and simplicity’

Philips launched its brand promise, ‘sense and simplicity’ in 2004 as an integral part of its efforts to become a market-driven company. For Philips, ‘sense and simplicity’ sets the criteria against which Philips gauges everything it does and makes. It ensures the Philips’ mission to improve the quality of people’s lives through the timely introduction of meaningful technological innovations that are guided by three principles– designed around people’s unique needs, easy to experience and advanced. Philips also took a step further to live up to ‘sense and simplicity’ as a company, applying this promise to internal processing, the way the company works with customers and suppliers – open and transparent, approachable and easy to do business with – to the way employees work and to the products and services it brings to market.

Brand valuation by Interbrand Zintzmeyer & Lux

*Brand values were determined using the method Interbrand pioneered nearly 20 years ago and has since used to value more than 4,000 brands. Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future for the time frame from July 1, 2005 to June 30, 2006. To be considered, the brands must have a minimum brand value of US$2.7 billion, achieve about one-third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.

Contact Information

Anna Quarrell

Philips Corporate Communications

Royal Philips Electronics of the Netherlands

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