Philips reveals new wave of brand campaign to bring simplicity closer to customers

Campaign will provide customers with first hand experiences and benefits of simplicity

Monday, October 30, 2006 - Amsterdam, The Netherlands - Royal Philips Electronics (NYSE: PHG, AEX: PHI) has unveiled its latest brand campaign, which focuses on bringing the concept of simplicity closer to customers around the world. Building on the company’s ’sense and simplicity’ brand positioning, the campaign focuses on highlighting the benefits offered by simplicity, as well as allowing customers to directly experience simplicity first hand.

The new campaign spans TV, print, online and outdoor media in 10 markets around the world - China, France, Germany, U.K., U.S.A., Brazil, Russia, The Netherlands, Italy and India. The campaign will also see Philips expand on the creativity and originality that has already been commended for new ideas that improve the consumer experience, such as the sole sponsorship of CBS’s ’60 Minutes’, a deal to bring the contents pages of Time, Fortune, People and Business 2.0 to the first four pages of the magazines, and allowing visitors to access premium content on the Wall Street Journal and ESPN websites for free.



To stretch the envelope further beyond traditional advertising means, Philips’ latest campaign will also include experiential marketing activities for the first time in each of the countries to help allow customers to fully experience simplicity in action. Some of these activities will include ’Simplify New York’ which will provide New Yorkers with free access to the premium online service from The New York Times, free copies of the magazine, The Week and a set of online tools to make their daily lives easier; the launch of SimpliCity.com, a website (www.philips.com.br/simplescidade) which will provide people in São Paulo and Rio de Janeiro with the first central online resource to access and share useful information and tips that simplify life in these cosmopolitan cities; and a Simplicity Squad in Canada providing consumers with free vouchers for products and services to simplify their lives, as well as activities in other markets.



Andrea Ragnetti, Chief Marketing Officer of Philips commented: “The ’sense and simplicity brand promise is central to Philips vision of showing customers that technology and innovation can provide meaningful benefits that can simplify, and fit within, their everyday lives. This new campaign aims to creatively bring the concept even closer to customers by letting them experience simplicity first hand through innovative and interactive activities, and will also encourage them to contribute their own views.”



To encourage the discussion and debate about simplicity, Philips is also sponsoring an online forum to allow people from all over the world to voice their opinions and share their experiences of simplicity. The www.livesimplicity.net discussion forum allows people to contribute to online discussions and also start discussions of their own about simplicity in areas as varied as travel, business, communication, health and wellness, and technology. The site gives everyone a chance to have their say, interact with others and discuss problems. It is hoped that this interactive dialogue will contribute to helping find the solutions to meet future needs.

The success of the Philips ’sense and simplicity’ brand campaign has been highlighted by the results of Interbrand’s list of the world’s 100 most valuable brands. The annual ranking showed Philips had the largest increase in the electronics sector, ranking the company 48th overall up from 53rd in 2005, and 65th in 2004.

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 126,000 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.

Contact Information

Anna Quarrell

Philips Corporate Communications

Royal Philips Electronics of the Netherlands

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