Royal Philips Electronics announces that Ritek has entered into Veeza, the new Philips licensing program for CD-R discs. Veeza, which was announced in the beginning of this year, is designed to help the industry build up a level playing field for fair competition whereby the CD-R disc royalty rate is lowered from the current USD 0.045 per disc to USD 0.025 per disc for Veeza compliant companies, a reduction of 44%. AMSTERAM, THE NETHERLANDS, 25 September 2006 – Royal Philips Electronics (AEX:PHI; NYSE:PHG) announces today that Ritek，one of the leading Taiwan based optical disc manufacturers, has entered into Veeza, the new Philips licensing program for CD-R discs. Veeza, which was announced in the beginning of this year, is designed to help the industry build up a level playing field for fair competition whereby the CD-R disc royalty rate is lowered from the current USD 0.045 per disc to USD 0.025 per disc for Veeza compliant companies, a reduction of 44%.

Ritek’s entry into Veeza is a positive development in the optical disc industry because Veeza will make it easier to sell licensed CD-R discs and more difficult to sell unlicensed discs. This way Veeza combats unfair competition from trade in unlicensed CD-R discs, creating a level playing field and a healthier CD-R market.

Ben Beune, Senior Vice President of Philips International, said, “We are delighted and encouraged by Ritek’s decision that shows that a first-tier manufacturer is willing to contribute to a healthier CD-R disc market. Philips will closely work with Ritek through better customer service and technology sharing as stated in the Veeza licensing program.”