Philips’ Green Products achieve sales of over EUR 4 billion

Philips Sustainability Report 2006 shows sharp focus on energy efficient and accessible and affordable health solutions

Monday, February 19, 2007 - Amsterdam, The Netherlands – On the occasion of publishing the Philips Sustainability Report 2006, Royal Philips Electronics (NYSE:PHG, AEX:PHI) said that sales of its Green Products rose to more than EUR 4 billion in 2006. This is the result of the company’s EcoDesign drive over the past decade and its investment of more than EUR 400 million in Green Lighting Technologies over the last five years. Philips will increase this investment by more than EUR 100 million yearly the coming years.



The EUR 4 billion Green Product sales includes Philips’ latest state-of-the-art lighting technologies, which offer energy savings averaging at least 30%. The increased lifetime of these lighting products and their recyclability, result in substantial waste reduction with an equivalent decrease in the use of natural resources.



Barbara Kux, member of the Group Management Committee and chair of the Sustainability Board, said: “Green Products now account for 15% of our total revenue stream. These products include our top line of Green Flagships, which increased in number by 24% in 2006. We are also proud that we regained the number 1 position in the sector leisure goods in the Dow Jones Sustainability Indexes.”



Focus on energy efficient solutions to combat climate change

19% of global electricity is used for lighting. Philips is leading change in the lighting industry to increase energy efficiency. The company is calling for joint action between the lighting industry, non-governmental organizations and governments to encourage households to replace the incandescent bulb with energy-saving alternatives, a switch which in Europe alone could happen within 10 years, saving households up to 80% of lighting costs on their electricity bills.



One of Philips’s revolutionary products in this respect is an energy saving halogen bulb for the home – called Edore. It offers clear crisp lighting and uses 50% less energy than the ordinary household bulb. Available in the second half of 2007, the Edore is a retrofit halogen bulb that can be used in a normal fitting.



Philips also offers affordable, high-quality, energy-efficient lighting in emerging economies. In 2006, SMILE (Sustainable Model in Lighting Everywhere), consisting of a rechargeable portable lantern and a hand-cranked LED flashlight, was launched as a commercial pilot in four states in India. The results look very promising.



Another area Philips is focusing on is the hidden energy use for TVs on standby. The company aims to lower standby energy consumption of its TVs to below 0.2 watts in its 2008 model televisions. The energy consumed when the television is on is also addressed, in particular in its LCD TVs with light sensors for automatic dimming backlights to reduce energy consumption when people view TV in the evening.



Focus on providing access to and affordable health solutions

From 2000 until 2050, the world’s population aged 60 and over will more than triple from 600 million to 2 billion. Cost and quality of healthcare as well as access to it in new and emerging economies becomes of vital importance.



Early detection and diagnosis of diseases means that treatment can be easier and less invasive and at a lower cost. Philips is, for instance, developing the imaging procedures for some 4,000 to 6,000 computerized tomography X-rays scans of coronary arteries and ultrasound scans of necks, where plaque build-up can lead to stroke. It could revolutionize cardiac care with the dream that one day doctors will be able to predict and prevent heart attacks and cardio vascular disease.



Telemonitoring is another part of this approach. Many patients need help in managing complex conditions over time. Treating these patients is a time- and resource-consuming task for healthcare professionals and usually requires patients to regularly visit healthcare facilities. Philips has developed a remote patient management solution delivering personalized healthcare through home television.



Philips’ President and CEO Gerard Kleisterlee said: “We view sustainability as a business opportunity, to improve people’s lives and create value for individuals, communities and the company. In our sustainability efforts we focus on two global challenges that affect everyone: energy and healthcare. We want to be the company that simplifies solutions for these complex issues.”

A copy of the full report can be downloaded at

* www.philips.com/about/sustainability/index.html



Images of the report can be downloaded at the images and videos section at

* http://www.newscenter.philips.com/About/News/imagesvideos/Index.html


Sustainability Recognition

* Dow Jones Sustainability Indexes member since 2000
* 2006/2007 Dow Jones Sustainability Indexes global leader in the sector leisure goods
* Global 100 Most Sustainable Corporations in the World since it was launched at the World Economic Forum in 2005.

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 121,700 employees in more than 60 countries worldwide. With sales of EUR 27.0 billion in 2006, 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

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