Philips welcomes the momentum to accelerate the switch to energy efficient lighting solutions

Switch to energy efficient lighting provides economic and ecological benefits; significant reduction of energy consumption, carbon emissions and costs, while improving the well-being of people

Brussels, Belgium – Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced today it welcomes the decision made by the European Union to phase-out incandescent light bulbs in the EU by 2012. This decision is in line with Philips’ call for action to accelerate the switch over to energy efficient lighting solutions in view of climate change, as announced in Brussels on 7 December 2006.

“This decision is a milestone in our efforts to accelerate the switch to energy efficient lighting solutions,” says Rudy Provoost, CEO of Philips Lighting. “Lighting offers a great opportunity to not only significantly reduce energy consumption and carbon emission and as such contribute to a better environment; it also provides economic benefits. In short, energy efficient lighting solutions turn an economic and ecological challenge into an opportunity for innovation and growth, with a better quality of light that improves people’s well-being. Our global leadership position in lighting, coupled with our strategic focus and drive, positions us very well to further lead in innovative sustainable solutions and new business models.”

In Europe, 1.8 billion incandescent light bulbs were sold in 2007, and the switch to energy efficient lighting solutions will have a significant impact. With this phase-out, consumers will significantly reduce energy consumption and fight climate change by preventing 23 million tons of CO2 emissions per year. What’s more, consumers can save up to EUR 8-10 in energy costs per bulb per year. On average there are about 20-30 light points per house and with the many alternative energy savers and halogen bulbs available from Philips, including LED-based solutions, consumers can create the perfect ambiance at home.

As leader in the lighting industry, Philips is further taking the lead in the initiative to accelerate the switch to energy efficient lighting. In addition to saving energy in homes, significant savings can be achieved in buildings and streets. At a side event at the United Nations Conference for Climate Change further initiatives were outlined. In the lead up to announcing a global program focused on building and street renovation, Philips discussed steps to enable city authorities and building owners to take immediate action to contribute to a better environment. And at today’s Third Industrial Revolution Global Business CEO Round table in Brussels, a plea was made to collaborate and start acting now.

“In today’s economic and ecological climate, lighting is an industry that can help save money as well as energy and carbon emissions,” says Garrett Forde, CEO of Philips Lighting’s Lamps business in Europe. “This is unique and a very important opportunity, which offers a win-win situation for all involved. By switching lighting solutions in buildings and streets, companies and cities can save significant amounts of money and reduce their carbon footprint to reach their environmental targets, helping to combat climate change.”

“Everybody can act now; there are no hurdles left, only benefits,” he adds. “Businesswise, this opportunity will fuel growth and strengthen competitive position for businesses involved, while it immediately contributes to a better environment, and enhances people’s well-being. In short, energy efficient lighting solutions turn an economic and ecological challenge into an opportunity for innovation and growth, with a better quality of light that improves people’s well-being.”
Background information

Lighting accounts for 19% of all electricity used, and buildings and street lighting consume a major – 75% - part of it. A potential energy saving of up to 70% can be achieved by applying the latest solutions, while also improving the well-being of employees and citizens through a better light quality. Research shows that up to 80% of lighting systems in buildings is based on outdated technology. Upgrading to advanced systems can be done in various ways. The most impactful way is to renovate the entire lighting system, to include sensors, while the simplest, yet less efficient way, is to replace the lamp in the system.

If all the lighting in the world were switched to energy efficient solutions, we would save €120 billion on electricity and 630 million tonnes of CO₂. That is the equivalent output of 500 power plants or 1,800 million oil barrels in a year.

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 128,000 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2007, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.