Press Release

Philips X-ray products rank #1 in Overall Service Performance in 2004 IMV survey

November 24, 2004
Frost & Sullivan also awards Philips 2004 Market Leadership award in Cardiology

Andover, Massachusetts, USA -- Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced today that customers rated its Medical Systems division the #1 vendor in overall service performance for X-Ray All Systems from the 2004 IMV ServiceTrak™ survey. The survey also reported that Philips rose to the #1 position for overall service performance for X-Ray Cardiology, X-Ray General Radiology and X-Ray RF. Additionally Philips was awarded the market leadership 2004 award by Frost and Sullivan for its cardiology segment of the U.S. cardiac and vascular X-ray market.

In the IMV survey, customers were asked to rate manufacturers on a broad range of factors across the product ownership lifecycle, including: installation and training, satisfaction with service, satisfaction with manufacturer, system performance, help desk, and satisfaction with service engineer.  Philips outperformed the industry average in 19 of these individual performance factors.

“We are very pleased that our service performance ratings have steadily increased in so many categories, especially compared to the industry average,” said Bill Mixon, vice president of customer services for Philips Medical Systems. “Customer satisfaction is one of the most important measurements of our success. We want our customers to feel not only that they are receiving the highest levels of service from us, but also the best service in the industry.”

Frost and Sullivan Market Leadership:

Philips is also the recipient of the prestigious Frost & Sullivan Market Leadership 2004 award in the cardiology segment of the U.S. cardiac and vascular X-ray equipment market. Philips has established a leadership position as a result of a number of noteworthy achievements. These include the successful expansion of its product line and the introduction of cutting-edge technology innovations in the cardiology X-ray equipment market.

Philips found its success in the cath lab market by employing customer-focused marketing strategies for its Allura and Integris product lines. In an industry comprised of some of the world’s most prominent healthcare companies, Philips has continued to maintain market leadership by carefully listening to customer needs.

Within the cardiology X-ray market, Philips has contributed an excellent record of premium quality products leading to strong customer satisfaction among its end-user base. Powerful brand recognition, technologically innovative products and attention to customer needs have earned Philips the leadership position in the cardiology X-ray equipment market.

About IMV Limited

IMV Limited, based in Greenbelt, MD, is an independent healthcare research company with more than 17 years experience in analyzing the medical imaging, clinical diagnostic and instrument markets. ServiceTrak is one of the most recognized and trusted surveys in the healthcare industry. The 2004 ServiceTrak X-ray systems report is based on data collected from more than 1,750 users for 5   manufacturers.  Respondents are drawn from a randomized database of U.S. hospital sand imaging centers. For further information, visit www.imvlimited.com

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting, with offices located worldwide.  Frost & Sullivan presents Market Engineering Awards to companies that demonstrate excellence in their industry.  The prestigious awards commend the diligence, commitment, and innovative business strategies required to advance in the increasingly competitive global marketplace.  Frost & Sullivan rigorously analyzes specific criteria to determine Market Engineering Award recipients in a variety of regional and global market landscapes.  For further information, visit www.frost.com.

For further information, please contact:

Sarah Campbell, Manager Corporate Communications and Sustainability
Philips Electronics Australia
65 Epping Rd, North Ryde NSW 2113
Tel: +61 2 9947 0472
Mob: +61 421 612 994
sarah.campbell@philips.com

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales of EUR 27 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.