Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced the world?s smallest FM radio solution for mobile devices, one of three new additions to its portfolio.

As market leader in FM radios for handsets, Philips is also first-to-market with the smallest integrated FM+RDS (Radio Data System) solution that provides listeners with a new world of interactive, user-friendly radio. FM radio is one of the key features users are looking for as mobile phones are evolving into portable Connected Consumer devices. With listening figures as high as 20 hours per week*, consumers appreciate the addition of easy-to-use FM radio on their mobile phones. The ultra-small size simplifies the design process for device manufacturers and makes space available for other features.

Today, 15 percent of mobile phones sold worldwide have FM radio, and the market is set to continue to grow toward 50 percent.** Philips? complete portfolio of radio solutions includes FM, AM/FM and FM+RDS. It also supports RBDS (Radio Broadcast Data System), the U.S. standard for RDS. The integration of RDS will enable users to view the station name, scan for a particular type of program and ensure that the receiver always tunes to the strongest signal available. The technology also offers benefits for telecom operators by increasing average revenue per user (APRU).

?Mobile phones are becoming the ultimate portable device and consumers are placing great value on the multimedia features that differentiate their phone from others in the market. Already established as a proven technology with a large user base all over the world, FM radio is a valuable addition to any handset,? said Peter Baumgartner, senior vice president of Philips Semiconductors? Communications business. ?As the leader in this market for FM radio on mobile devices, Philips enables everyone to enjoy radio entertainment, everywhere and anytime they want.?

Philips? complete portfolio of FM radio solutions gives manufacturers the opportunity to target specific market segments. This flexibility is of particular importance with the decreasing lifespan of mobile phones and other devices due to accelerating innovation cycles and increased competition worldwide.

The external component count has been reduced dramatically in the new FM and FM+RDS products. The size of the FM radio TEA5761 has been reduced from 150 mm2 to a 50mm2 PCB area. The FM with integrated RDS demodulator and decoder TEA5764 covers a total PCB area of only 70 mm2. The two versions are realized in wafer level chips-scale (WL-CSP) packaging. Philips is the first company to achieve this level of integration. The FM radio and FM+RDS are fully pin compatible, which means that manufacturers benefit from the ability to make last-minute easy swaps.

The FM radio TEA5767 remains in production. The AM/FM TEA5777 appears in the HVQFN48 and has 200mm2 PCB.

Availability

Philips? FM TEA5761 is available now, while the FM+RDS TEA5764 and the AM/FM TEA5777will be available in January 2005.