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Wednesday, September 22, 2004
Changes in Philips' Group Management Committee


Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced a number of changes in the responsibilities of the members of its Group Management Committee (GMC).

Effective January 1, 2005, Mr Scott McGregor will, at his own request, relinquish his position as CEO of the Semiconductors division and leave the company to return to the United States. Mr McGregor has been in his current position since September 1, 2001.

Mr Frans van Houten, a member of the GMC and currently responsible for the business groups of the Consumer Electronics division, will become the new CEO of the Semiconductors division, reporting to Mr Gerard Kleisterlee, President & CEO of Royal Philips Electronics.

Mr Van Houten's portfolio will be taken over by Mr Rudy Provoost, a member of the GMC and currently in charge of Global Sales and Services at Consumer Electronics, who will therefore assume the full responsibility of CEO of the division, reporting to Mr Gottfried Dutin?, Executive Vice President and member of the Board of Management of Royal Philips Electronics.

Mr Kleisterlee commented: "Whilst we respect Scott McGregor's personal decision to return to the United States, we regret to see him leave. He has led the Semiconductors division through one of the most difficult periods in its history and managed to turn it around successfully into a leaner business with a strong focus on innovation. We wish Scott all the best for his future career."


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