"Prepare for fundamental change" Philips CE CEO Rudy Provoost tells industry

Friday, September 01, 2006 - IFA 2006, Berlin, Germany – Following a decade of convergence taking consumer electronics from the analogue era into the digital domain, Rudy Provoost, CEO of Philips Consumer Electronics and member of the Board of Management of Royal Philips Electronics, will tomorrow outline his vision of the ‘New Convergence’ era within the global CE industry.

In a keynote speech to be delivered to industry figures at the IFA 2006 trade show in Berlin, Mr Provoost will highlight how the consumer electronics industry needs to broaden out from offering predominantly entertainment-orientated products to providing consumers with devices and technologies which serve their ‘Lifestyle’ needs.

“The Consumer Electronics Industry has to prepare itself for a fundamental change,” Mr Provoost will tell an audience of retailers, manufacturers, journalists and other industry figures. “Increasingly, consumers want to use our devices and services outside the traditional ‘infotainment’ arena in applications such as personal healthcare.”

Mr Provoost, who is also President of the Executive Board of EICTA (European Information & Communications Technology Industry Association), will also stress the need for the CE industry to continue making more efforts to create products and services based on consumer needs, and not just based on the abilities of research and development departments.

“The future of this industry is exciting,” he will state, “but we must consistently push the innovation envelope to compete in a high volume, low-margin business. We must add new value spaces and create new value partnerships through which we can deliver, exciting platforms that enrich consumers’ experiences both in our well-served areas of entertainment and beyond. That is the promise of New Convergence.”

In outlining his vision of New Convergence, Mr Provoost will also discuss the growing role consumer electronics is playing in the emerging ‘Health & Wellbeing’ sector. Philips is currently running a project called Connected Care, which addresses how traditional CE platforms like TVs and set-top boxes can be used in preventative care, disease management and the adoption of healthier lifestyles.

“Consumers are looking for easier ways to develop a healthier lifestyle balance whilst juggling the demands of family and career,” Mr Provoost explains in his speech. “Connected Care illustrates how various CE-like devices and services can interrelate and empower consumers to overcome obstacles to lifestyle change and positively influence their health and well-being.”

Talking about the speech itself, Mr Provoost says: “I’m delighted to share my views with such a distinguished audience. As Europe’s leading platform for the CE industry, IFA is the ideal forum to discuss the implications of New Convergence with the key players in our sector.”

Rudy Provoost’s keynote speech, The Consumer Electronics Industry: A Platform For New Convergence, will take place on Saturday 2 September, 2006 at 9.45am (CEST) in Room Berlin (1 & 2 ) with Hall 7 of the Berlin Messe showground.

A full text transcript of the speech will be available for downloading from 11am (CEST) onwards on 2 September from www.ifa.philips.com.

See Philips at IFA 2006 in Hall 22 of the Berlin Messe from 1-6 September 2006

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

Contact Information

Andrew Goldman

Philips Consumer Electronics, Communications Department

Royal Philips Electronics of the Netherlands

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