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A division of Royal Philips Electronics of the Netherlands, will be showcasing a variety of innovative digital solutions at CeBIT 2001. The cutting-edge solutions to be featured at the exhibition illustrate the transformation of Philips Components over the past few years from a supplier of commodity components to a leading provider of digital solutions in the display, wireless connectivity and optical storage markets.

``Our presence at CeBIT clearly shows that we are delivering added value to our customers through ingenuity and superior technology, based on the key strengths, experiences and synergies of both Philips Components and our sister divisions within the Philips Group,'' commented Matt Medeiros, president and CEO of Philips Components. ``As an enabling partner, we offer customer-driven integrated solutions for the digital consumer electronics, mobile telecommunications, PC-related and automotive infotainment market segments -- delivering a significant time-to-market advantage to all our customers.''

Seen for the first time in Europe, Philips' Net Display Modules, the S10LP-NG (featuring National Semiconductor's Geode(TM) SC3200 system chip) and S10LP-TC (featuring Transmeta's Crusoe(TM) TM3400 chip), offer the industry's only in-panel system board integration, enabling the thinnest and lightest products -- from Web tablets and public information displays to kiosks and thin clients. Philips Components has integrated best-in-class hardware and software into modules that are 80 percent complete as consumer-ready products. The module is composed of a touch-screen liquid crystal display (LCD) with the added functionality of an integrated system board for Internet access, and software drivers to support an operating system of choice and streaming video. From there, an OEM customer provides the industrial design, user interface, applications and base station. Connectivity modules, such as Philips' Bluetooth or 802.11b solutions, can make the module completely wireless.

Philips will also showcase a high-resolution electronic ink display prototype, incorporating the company's active matrix backplanes and drivers. Philips and E-Ink Corporation, the leading developer and marketer of electronic ink technology, recently announced the joint development of high-resolution electronic ink displays for use in smart handheld devices. Electronic ink allows a fixed image to remain on the screen even after the power source is shut off, leading to dramatically longer battery life. The bright paper-white background of electronic ink eliminates the need for a backlight in most conditions, and offers dramatically improved readability.

During the exhibition, Philips Components' Connectivity Group will demonstrate its unique wireless solutions for the first time in Europe. The group specializes in complete, yet flexible, plug-and-play modules that enable OEM customers to bring end-products to market faster. Through collaboration with leading silicon, software and applications companies, including Cambridge Silicon Radio (CSR), Intersil Corp., Silicon Wave, Inc. and WIDCOMM, Inc., and leveraging its strong relationship with Philips Semiconductors, Philips Components is a one-stop shopping hub for leading-edge system solutions for wireless connectivity. Philips' complete modular Bluetooth solutions for hi-fi audio loudspeakers, CompactFlash card connectivity and wireless headsets will all be seen at CeBIT for the first time. A Bluetooth-enabled battery pack solution for mobile phones and embedded mini PCI modules will also be on display.

Philips Components and Philips Consumer Electronics will demonstrate their complementary strengths in optical storage with a variety of market-leading key optical storage products and solutions. The unique DVD+RW benefit of two-way compatibility with both DVD-Video players and DVD-ROM using a DVD+RW data drive, along with Philips' DVD+RW Video Recorder will be demonstrated. The latest developments in the Mt. Rainier initiative (to enhance the ease-of-use functionality of CD-ReWritable as the natural replacement of the floppy disk in the PC environment), will also be seen at the Hannover show, as well as Thermo-Balanced Writing technology for intelligent writing in CD-ReWritable drives.

From displays and connectivity to storage, Philips Components will demonstrate an extensive portfolio of innovative digital solutions at CeBIT that truly deliver added value to its OEM customers, and bring tomorrow's technologies to market today.

See first-hand and learn more about these and other exciting Philips products at CeBIT, Hall 12, booth B6, from March 22 through March 28, or visit www.components.philips.com.

Philips Components, headquartered in Sunnyvale, California, is a world-leading provider of integrated digital electronic solutions in the areas of displays, storage, connectivity and imaging and sensing. Its global customer base covers the consumer electronics, telecommunications and automotive industries, amongst others. Philips Components had annual revenues of over EUR 6.3 billion for the year 2000, and employs more than 40,000 people in 39 countries around the world. More information about Philips Components is available at www.components.philips.com

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 37.9 billion in 2000. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 219,400 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges.