Philips brand value increases 15% in global Interbrand ranking of most valuable brands

Monday, July 30, 2007, Amsterdam, The Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) announced today Philips was one of the ten fastest-growing brands in terms of total brand value in the 2007 ranking of the top-100 global brands as compiled by leading brand consultant Interbrand. In this year’s ranking, the total estimated value* of the Philips brand increased by 15% to USD 7.7 billion, from USD 6.7 billion in 2006. Following this fourth consecutive increase in brand value in the annual Interbrand ranking, Philips is now ranked the 42nd most valuable brand in the world, compared with place 48 last year.



Andrea Ragnetti, Philips’ Chief Marketing Officer and member of the Board of Management, said “we are very proud that this year we increased for the fourth time in a row our ranking in the Interbrand top-100. This achievement is further proof that our commitment to delivering products and solutions to consumers and professionals that are easy to experience, advanced and designed around the customer is successfully working, with our brand promise ”sense and simplicity“ as an effective brand carrier”.



Dr. Jürgen Häusler, CEO Interbrand Zintzmeyer & Lux, said that “Again the Philips brand value shows an impressive growth rate. The 15% increase in value not only reflects that investments in the brand paid off, but it also reveals that the brand’s core messages resonate with customers. Philips not only talks about simplicity; it lives simplicity - through its focus on core activities and efficient operations Philips managed to simplify the organization and reduce costs, and through its focus on customers and their needs the brand signals that it makes a true effort to stay attractive for customers. We at Interbrand are confident that the brand is well positioned to reap the benefits of future opportunities.”



In 2004, when Philips launched its “sense and simplicity” brand campaign, Philips was ranked 65th in the Interbrand top-100 of most valuable brands, with a total brand value of USD 4.4 billion. In 2005, Philips took the 53rd position in the ranking with a total brand value of USD 5.9 billion.



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 and www.simplicityhub.philips.com

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 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,100 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, 2006 to June 30, 2007. 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

Arent Jan Hesselink

Philips Corporate Communications

Royal Philips Electronics

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