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<SEC-DOCUMENT>0001156973-03-000603.txt : 20030424
<SEC-HEADER>0001156973-03-000603.hdr.sgml : 20030424
<ACCEPTANCE-DATETIME>20030424091901
ACCESSION NUMBER:		0001156973-03-000603
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20030415
FILED AS OF DATE:		20030424

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KONINKLIJKE PHILIPS ELECTRONICS NV
		CENTRAL INDEX KEY:			0000313216
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			P7
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-05146-01
		FILM NUMBER:		03661181

	BUSINESS ADDRESS:	
		STREET 1:		REMBRANDT TOWER AMSTELPLEIN 1
		STREET 2:		1096 HA AMSTERDAM
		CITY:			THE NETHERLANDS
		BUSINESS PHONE:		0113140791

	MAIL ADDRESS:	
		STREET 1:		REMBRANDT TOWER AMSTELPLEIN 1
		STREET 2:		1096 HA AMSTERDAM
		CITY:			THE NETHERLANDS

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS NV
		DATE OF NAME CHANGE:	19910903

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS ELECTRONICS N V
		DATE OF NAME CHANGE:	19930727
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>u46120e6vk.htm
<DESCRIPTION>6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e6vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="right"><FONT size="2"><B>2003 - 3</B>
</FONT>

<P align="center"><FONT size="4">SECURITIES AND EXCHANGE COMMISSION
</FONT>
<P align="center"><FONT size="3">Washington, D.C.<BR>
20549<BR>
</FONT>
<P>
<HR size="1" noshade width="15%">

<P align="center"><FONT size="5"><B>FORM 6-K</B>
</FONT>
<P align="center"><FONT size="2"><B>REPORT OF FOREIGN ISSUER</B>
</FONT>
<P align="center"><FONT size="2">Pursuant to Rule&nbsp;13a-16 or 15d-16 of the<BR>
Securities Exchange Act of 1934
</FONT>
<P align="center"><FONT size="2">For the period commencing February&nbsp;12, 2003 through April&nbsp;15, 2003
</FONT>
<P>
<HR size="1" noshade width="15%">
<P>&nbsp;
<P align="center"><FONT size="4"><B>KONINKLIJKE PHILIPS ELECTRONICS N.V.</B></FONT><BR>
<HR size="1" noshade width="50%">
<DIV align="center"><FONT size="2">(Name of registrant)</FONT></DIV>
<P>&nbsp;
<P align="center"><FONT size="3">Breitner Center, Amstelplein 2, 1096 BC Amsterdam, The Netherlands</FONT><BR>
<HR size="1" noshade width="50%">
<DIV align="center"><FONT size="2">(Address of principal executive offices)</FONT></DIV>
<P>&nbsp;
<P align="center"><FONT size="2">Name and address of person authorized to receive notices<BR>
and communications from the Securities and Exchange Commission:
</FONT>
<P>&nbsp;
<P align="center"><FONT size="2">A. Westerlaken<BR>
Koninklijke Philips Electronics N.V.<BR>
Amstelplein 2<BR>
1096 BC Amsterdam &#151; The Netherlands
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Report on the performance of the Philips Group</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Highlights in the quarter</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Philips and BenQ form Joint Venture in Optical Storage</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Philips appoints Johan van Splunter to succeed Ad Veenhof as CEO of domestic appliance division</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Philips&#146; Connected Home is here and now</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">Philips and KPN agree to broadband alliance</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">Philips unveils recovery plan for Semiconductor division</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">Philips launches first sustainability report</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P align="left"><FONT size="2">This report comprises a copy of the <I>Quarterly Report of the Philips Group </I>for
the three months ended March&nbsp;31, 2003, dated April&nbsp;15, 2003 as well as a copy
of the press releases entitled:
</FONT>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips and BenQ form
Joint Venture in Optical Storage&#148;</I>, dated February&nbsp;12, 2003;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips appoints Johan
van Splunter to succeed Ad Veenhof as CEO of domestic appliance division&#148;</I>, dated March&nbsp;3, 2003;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips and KPN agree to broadband alliance&#148;</I>, dated March&nbsp;12, 2003;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips&#146; Connected Home is here and now&#148;</I>, dated March&nbsp;12, 2003;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips unveils recovery plan for Semiconductor division&#148;</I>, dated March&nbsp;13, 2003;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><I>&#147;Philips launches first sustainability report&#148;</I>, dated March&nbsp;27, 2003.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf, by the
undersigned, thereunto duly authorized at Amsterdam, on the 15th day of April
2003.
</FONT>
<P>&nbsp;
<P align="center"><FONT size="2"><B>KONINKLIJKE PHILIPS ELECTRONICS N.V.</B>
</FONT>
<P>&nbsp;
<P align="center"><FONT size="2">/s/ G.J. Kleisterlee<BR>
<B>G.J. Kleisterlee</B><BR>
(President, Chairman of the Board of Management)
</FONT>
<P>&nbsp;
<P align="center"><FONT size="2">/s/ J.H.M. Hommen<BR>
<B>J.H.M. Hommen</B><BR>
(Vice-Chairman of the Board of Management<BR>
and Chief Financial Officer)
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><IMG src="u46120u4612001.gif" alt="(QUARTERLY REPORT)">
</FONT>
<P align="left"><FONT size="2">Safe Harbor&#146; Statement under the Private Securities Litigation
Reform Act of 1995.</FONT>
<P align="left"><FONT size="2">This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items (including,
but not limited to, cost savings).
</FONT>
<P align="left"><FONT size="2">By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that will occur in
the future. There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied by these
forward-looking statements. These factors include, but are not limited to,
levels of consumer and business spending in major economies, changes in
consumer tastes and preferences, changes in law, the performance of the
financial markets, pension costs, the levels of marketing and promotional
expenditures by Philips and its competitors, raw materials and employee costs,
changes in future exchange and interest rates (in particular, changes in the
euro and the US dollar can materially affect results), changes in tax rates and
future business combinations, acquisitions or dispositions and the rate of
technological changes.
</FONT>
<!-- link1 "Report on the performance of the Philips Group" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="left"><FONT size="2" color="#00FFFF"><B>Report on the performance of the Philips Group</B>
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#150;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">all amounts in millions of euros unless otherwise stated</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#150;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">the data included in this report are unaudited</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#150;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">financial reporting according to US GAAP</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2" color="#00FFFF">Philips reports first quarter income from operations of EUR 32&nbsp;million &#151; a net loss of EUR 69&nbsp;million</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>14% lower nominal sales, comparable sales growth 1%</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Strong performance from Lighting and record income at DAP</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>10% sequential comparable sales decline at Semiconductors, excluding Mobile Display Systems</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Improved performance of Medical Systems</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Weakening Consumer Electronics markets</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Cost reduction programs on-track</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Record low inventories for the quarter: 12.1% of sales</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2"><B>Net debt: group equity ratio 30:70</B></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2" color="#00FFFF">The first quarter 2003</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Philips recorded a net loss of EUR 69&nbsp;million (a loss of EUR 0.05 per share)
versus a profit of EUR 9&nbsp;million (a profit of EUR 0.01 per share) in the same
period last year. This year&#146;s quarter included special items of negative EUR
34&nbsp;million, whilst last year&#146;s special items amounted to a positive EUR 16
million. Sales decreased by 14% over the same period of last year, negatively
impacted by the weakening of the US dollar and related currencies (11%), and
lower consumer confidence levels. Volumes were 8% higher, continuing the
positive trend quarter over quarter. Income from operations was a profit of
EUR 32&nbsp;million, including EUR 31&nbsp;million in net special charges, versus a EUR
73&nbsp;million profit last year, which included EUR 58&nbsp;million in net special
gains. Pension costs were EUR 78&nbsp;million higher in the quarter. Income from
operations was positively impacted by a net EUR 54&nbsp;million for past use
licenses.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">The cost reduction programs remain on-track, with reduction in overhead costs
amounting to EUR 277&nbsp;million to-date, total integration savings at Medical
Systems of EUR 214&nbsp;million, and other projects which together will ensure the
Company achieves the targeted EUR 1&nbsp;billion in savings by 2004.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Cash flow from operating activities saw the usual seasonality with an outflow
of EUR 205&nbsp;million. Inventories as percentage of sales came to another record
low for the quarter of 12.1%, compared to 14.0% last year. During the quarter
the net debt position increased by EUR 323&nbsp;million (EUR 202&nbsp;million of which
was used for Philips&#146; participation in InterTrust Technologies Corporation)
to EUR 5.6&nbsp;billion.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">1</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2" color="#00FFFF">Gerard Kleisterlee,<BR>
Philips&#146; President and CEO:
</FONT>
<P align="left"><FONT size="2">&#147;Although net income was a loss, the first quarter of 2003 has demonstrated
again that Philips is able to show positive operational performance in spite of
adverse economic conditions. Seasonality and the weaker US dollar, coupled with declining consumer
confidence, especially affecting CE, resulted in significantly lower sales
levels, while higher pension costs also impacted the results. Nevertheless, we
achieved another record quarter at our DAP division, healthy results from
Lighting, improved earnings from Medical Systems, and progress from CE on its
improvement plan for the U.S. For Semiconductors, we announced a clear recovery
plan and we are confident that the division will be back to profitability in
the fourth quarter of this year.
</FONT>
<P align="left"><FONT size="2">Improving operational performance remains the focus of our attention. We will
continue to reduce costs and exercise best-in-class supply chain management. In
addition we will better capitalize on product and marketing innovation to drive
sales &#151; supported by exploiting best practices and synergies across the
Philips Group.&#148;
</FONT>

<P align="center"><FONT size="2">2</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Net income</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>32</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.5</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Financial income and expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(82</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(20</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income taxes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>12</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Results related to unconsolidated companies</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(24</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(43</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interests</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(7</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(4</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(69</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Per common share &#150; basic</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.05</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><FONT color="#FFFFFF">Per common share&nbsp;</FONT>&#150; diluted</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.05</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Special items</B></FONT><BR>
in millions of euros
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Affecting income from operations:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(31</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Affecting financial income and expenses:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income taxes related to special items</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(15</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Affecting results relating to unconsolidated companies:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(11</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(94</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total special items</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(34</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Group sales and composition of changes (%)</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Philips group sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% change from the previous year:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Nominal change</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(14</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consolidation changes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(4</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Currency effects</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(11</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Comparable change</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(12</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Prices</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(7</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Volume</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Sales by sector</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>% change</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>compa-</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>nominal</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>rable</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lighting</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,154</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(6</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cons. Electronics</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,943</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(14</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DAP</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>458</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">454</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Semiconductors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,126</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Medical Systems</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,329</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(20</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Miscellaneous</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>489</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(39</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(8</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Philips group</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(14</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<!-- link1 "Highlights in the quarter" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left"><FONT size="2" color="#00FFFF">Highlights in the quarter
</FONT>
<P align="left"><FONT size="2" color="#00FFFF">Group sales and income
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Sales</I></FONT> in Q1 were EUR 6,499&nbsp;million, 14% lower than Q1 2002. Nominal sales were
negatively impacted by weaker currencies (11%), and the effect of various
divestments (4%). The average euro dollar rate showed a sequential decline of
7% in Q1 and a decline of 18% from the same period last year. Comparable sales growth in Q1 came to 1%. Consumer Electronics sales were
impacted by declining consumer confidence. On the positive side, sales in
Lighting, DAP and Semiconductors expanded on a comparable basis. Price erosion
remained at 7%, whilst unit sales grew with 8%. Geographically, sales decreased
in all regions, but particularly in North and Latin America, caused by the
weaker currencies. On a comparable basis, sales rose 8% in Asia Pacific, 1% in
North America and decreased 10% in Latin America and 2% in Europe.
</FONT>
<P align="center"><FONT size="2">3</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Income from operations</I></FONT> amounted to a profit of EUR 32&nbsp;million and included net
special charges of EUR 31&nbsp;million. Last year&#146;s income of EUR 73&nbsp;million
included net special gains of EUR 58&nbsp;million. The positive impact of the
overhead cost reduction program in the quarter was EUR 20&nbsp;million and the
integration savings at Medical Systems were EUR 41&nbsp;million. Past use licenses
contributed net EUR 54&nbsp;million to income compared to EUR 23&nbsp;million last year.
Pension costs were EUR 78&nbsp;million higher than the same period in 2002.
</FONT>
<P align="left"><FONT size="2">Lighting, CE (due to higher license income), DAP and Medical Systems improved
versus last year, the latter largely as a result of the post-merger integration
savings (EUR 41&nbsp;million). The lower income from operations at Semiconductors was caused by restructuring
charges at San Antonio (EUR 30&nbsp;million) and accelerated depreciation of assets
at Albuquerque (EUR 22&nbsp;million), and the write-off of intangible fixed assets
(EUR 13&nbsp;million).
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Income from operations</B></FONT><BR>
in millions of euros
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>32</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(31</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>

<TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Write-down
of inventories in connection with restructuring<BR>
(cost of sales)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Restructuring and impairment charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(75</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(23</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Acquisition-related costs incl. in-process R&#038;D</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(22</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Gain on sale of participations/fixed assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>44</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Income from operations by sector</B></FONT><BR>
in millions of euros
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lighting</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>173</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consumer Electronics</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>73</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DAP</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>81</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Semiconductors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(178</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(108</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Medical Systems</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>70</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Miscellaneous</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(56</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(31</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Unallocated</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(131</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(83</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>32</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.5</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Financial income and expenses</I></FONT> were EUR 82&nbsp;million, compared with EUR 20&nbsp;million
last year, which was beneficially impacted by a EUR 67&nbsp;million gain from the
sale of ASML shares. Interest expenses were lower than last year, mainly driven
by the lower net debt position in Q1 2003.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Financial income and expenses</B></FONT><BR>
in millions of euros
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Financial income and expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(82</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(20</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Impairment charges included in Financial income and expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Gain on sale of ASML shares</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">67</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Income tax</I></FONT> has been calculated using an estimated effective rate of 25% on
pre-tax income. Last year, the tax calculation excluded the gain from the sale
of ASML shares.
</FONT>
<P align="center"><FONT size="2">4</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Results relating to unconsolidated companies</I></FONT> was a loss of EUR 24&nbsp;million, in
line with last year&#146;s quarter which included EUR 24&nbsp;million for amortization of
goodwill. LG.Philips LCD&#146;s results were lower than last year by EUR 54&nbsp;million,
while LG.Philips Displays&#146; net income improved by EUR 73&nbsp;million, mainly
resulting from lower restructuring charges in Q1 2003.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Results relating to unconsolidated companies</B></FONT><BR>
in millions of euros
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">SSMC</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(12</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(16</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">LG.Philips LCD</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(17</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">LG.Philips Displays</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(17</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(90</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Others</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>22</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(24</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(43</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in results
relating to unconsolidated companies:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(11</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(94</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Impairment charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Restructuring charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(11</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(91</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Asset impairment</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Gain on sales of businesses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2" color="#00FFFF">Cash flows and financing
</FONT>
<P align="left"><FONT size="2">Cash outflow from operations of EUR 205&nbsp;million was EUR 151&nbsp;million more
than last year. Capital expenditures of EUR 177&nbsp;million were EUR 48&nbsp;million lower than the
same period last year. A reset of currency hedges generated a cash inflow
of EUR 141&nbsp;million. Main proceeds from divestments were related to the sale of parts of PCMS
(EUR 40&nbsp;million). Outflows included a payment of EUR 202&nbsp;million for the
49.5% participation in InterTrust Technologies Corporation.
</FONT>
<P align="left"><FONT size="2">Inventories as a percentage of sales came to 12.1%, 1.9% less than Q1 2002
and another record low for the quarter. The cash conversion cycle came to 23&nbsp;days, a 5&nbsp;day sequential increase,
reflecting seasonality.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2"><IMG src="u46120u4612002.gif" alt="(CASH FLOW)"></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><IMG src="u46120u4612003.gif" alt="(INVENTORIES)"></FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">5</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2">Net debt increased by EUR 323&nbsp;million in the first quarter to EUR 5,574
million. Group equity showed a decrease of EUR 787&nbsp;million, including the
impact of dividends payable (EUR 460&nbsp;million), EUR 178&nbsp;million negative
translation differences and a decrease in value of the securities for sale
of EUR 105&nbsp;million. The net debt: group equity ratio ended the quarter at 30:70.
</FONT>
<P align="center"><FONT size="2"><IMG src="u46120u4612004.gif" alt="(NET DEBT)">
</FONT>
<P align="left"><FONT size="2" color="#00FFFF">Employment
</FONT>
<P align="left"><FONT size="2">At the end of March 2003, the total number of employees was 166,394, a decrease
of 3,693 compared with the position per the end of 2002. Excluding portfolio
changes, staffing levels were reduced by 2,487, mainly attributable to Consumer
Electronics and Lighting.
</FONT>
<P align="center"><FONT size="2"><IMG src="u46120u4612005.gif" alt="(EMPLOYEES)">
</FONT>
<P align="left"><FONT size="2" color="#00FFFF">Sales and income from operations per sector
</FONT>
<P align="left"><FONT size="2">Sales at <FONT color="#00FFFF"><I>Lighting</I></FONT> were impacted by 10% due to negative currency movements. On a
comparable basis a 4% increase was achieved from last year. All businesses
contributed to this increase, with the exception of Luminaires, which showed a
1% comparable decline. Income from operations came to EUR 173&nbsp;million, a EUR 21&nbsp;million increase
compared to Q1 2002. This was a result of improved margins, reduced costs and a
more profitable product mix.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Lighting: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,154</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(6</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>4</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>173</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>15.0</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(3</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.3</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,815</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>45,968</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">47,741</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Sales of <FONT color="#00FFFF"><I>Consumer Electronics</I></FONT> amounted to EUR 1.9&nbsp;billion, a comparable
decrease of 5% versus last year. The decline, which became more evident in the
course of the quarter, is attributable to a fall in consumer confidence and
over-stocked retail channels. Sales decreases were particularly noted in Television (-9%), in GSM (-33%),
where price erosion has increased considerably and in Set-top Boxes (-38%).
Monitor sales increased by 5% on a comparable basis (mainly growth in LCD in
Asia).
</FONT>
<P align="center"><FONT size="2">6</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2">Income from operations of Consumer Electronics excluding licenses came to a
loss of EUR 28&nbsp;million, EUR 6&nbsp;million lower than last year. Income from
operations of GSM was a loss of EUR 14&nbsp;million in this quarter. The other parts
of CE were generally able to maintain last year&#146;s profitability level, in spite
of the lower sales levels, by exercising tight cost controls. This year included a EUR 16&nbsp;million gain on the sale of part of PCMS and
restructuring charges for Monitors of EUR 7&nbsp;million, while a EUR 16&nbsp;million
insurance payment for GSM was included in last year&#146;s result. Results in North America continued the improving trend, from a loss of EUR 51
million last year, to a EUR 30&nbsp;million loss.
</FONT>
<P align="left"><FONT size="2">License sales amounted to EUR 115&nbsp;million, compared to EUR 84&nbsp;million for Q1
2002. Income from operations came to EUR 101&nbsp;million, including EUR 63&nbsp;million
for past use licenses. Last year, income from operations amounted to EUR 73
million, which included EUR 23&nbsp;million for past use licenses.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consumer Electronics: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,943</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(14</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(12</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(5</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(13</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>73</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>3.8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.4</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(0.1</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>150</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>18,932</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>DAP&#146;s</I></FONT> nominal sales increased by 1%. Currencies and deconsolidations had an 11%
negative impact, but the selling-in of new products contributed to a strong 12%
comparable sales increase. The increase was driven by dry shavers, the Sonicare
toothbrush and the Senseo coffee machine, together responsible for a 15%
increase. Regionally, North America and Western Europe contributed
the most. Income from operations was a record for the 15th consecutive quarter,
increasing 25% compared with last year as a result of continued higher gross
margins, lower costs and an improved product mix.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>DAP: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>458</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">454</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>12</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>81</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>17.7</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(0.4</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>583</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>8,783</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Semiconductors</I></FONT> experienced a nominal sales decline of 5% versus Q1 2002, whilst
comparable sales increased 7%. Sequential sales fell 16%, but 12% on a
comparable basis. Excluding Mobile Display Systems/PSS telecom (MDS)&nbsp;the
comparable decline was 10%. The push outs of orders in Mobile
telecommunications into Q2 and weak consumer markets were the main reasons for
the set back. MDS witnessed a 59% comparable sales increase over last year due
to a switch to color screens, but seasonality had its negative effect compared
to Q4 2002. The 3&nbsp;months average book-to-bill ratio of Semiconductors increased to 1.05 at
the end of Q1 compared to 0.87 at the end of Q4 2002.
</FONT>
<P align="center"><FONT size="2">7</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2">Q1 income from operations was a loss of EUR 178&nbsp;million, though MDS made a
small profit. Income was impacted by various special items, including the
accelerated depreciation of assets at Albuquerque (EUR 22&nbsp;million) and
&#096;restructuring charges at San Antonio (EUR 30&nbsp;million), and the write-off of
intangible fixed assets (EUR 13&nbsp;million). An insurance payment had a EUR 17
million positive effect in income.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Semiconductors: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,126</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Segment revenues</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,173</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(5</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(26</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>7</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(27</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(178</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(108</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of segment revenues</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(15.2</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(8.3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(15.8</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(9.1</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(65</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of segment revenues</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(5.5</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(5.8</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>3,637</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>34,306</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">35,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><I>Medical Systems&#146;</I></FONT> nominal sales were impacted by the lower dollar and the
divestment of HCP in the last quarter of 2002. Comparable sales were at the same level as Q1 2002, when voluntarily held-back shipments from the former
ADAC company were released. Income from operations came to EUR 70&nbsp;million,
representing an operating margin of 5.3% and included EUR 27&nbsp;million for the
amortization of intangible fixed assets. The improvement of EUR 43&nbsp;million
compared to Q1 of last year was primarily driven by fewer special items and
approximately EUR 41&nbsp;million from the realization of integration savings, in
line with the EUR 350&nbsp;million targeted savings by year-end 2003. Higher IT and
other costs of about EUR 20&nbsp;million reflect the ongoing investment in improved
systems and supply chain management. These costs will gradually decline during
2003.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Medical Systems: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,329</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(20</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>70</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>5.3</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(1</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(22</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.1</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1.3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>4,828</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,593</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>31,261</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Income from operations of <FONT color="#00FFFF"><I>Miscellaneous</I></FONT> came to a loss of EUR 56&nbsp;million and
included a special gain on the sale of certain speech recognition activities of
EUR 19&nbsp;million. Income of Optical Storage, excluding a past use license payment
of EUR 9&nbsp;million, was just above break-even, which is a strong improvement
compared to the loss giving situation of last year. Income was affected by a small increase in the provision for asbestos claims in
the U.S.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Miscellaneous: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>489</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(39</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(46</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, comparable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(8</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(14</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">IFO Corporate Technology</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(70</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(61</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">IFO Corp. Investments and others</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>14</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(56</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(31</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(11.5</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3.9</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Special items included in IFO</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>30</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6.1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(160</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>24,561</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Corporate and regional overhead costs in <FONT color="#00FFFF"><I>Unallocated</I></FONT> were 13% lower than the
same period last year, mainly driven by savings from the overhead cost
reduction program. Pension costs in Unallocated were EUR 58&nbsp;million higher.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Unallocated: key data</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Corporate and regional overheads</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(66</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(76</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Pensions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(65</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(131</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(83</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,583</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">8</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2" color="#00FFFF">Results related to unconsolidated companies
</FONT>
<P align="left"><FONT size="2" color="#00FFFF"><I>LG.Philips LCD joint venture (100%)</I>
</FONT>
<P align="left"><FONT size="2">Sales for the quarter were EUR 769&nbsp;million and maintained the sequential growth
trend from previous quarters, with 5.7% growth. Compared to Q1 last year sales
grew by 6.9%, and by 18% in local currency. Average sales price per panel was
USD 200 in the current quarter, USD 58 below the average prices of Q1 2002. The
substantial increase in volume, especially driven by the new 5th generation
facility, resulted in the growth in sales. Gross margin for the quarter was 9.2% of sales and income from operations came
to 0.8%. The significant weakening of the Korean Won during the quarter
resulted in currency transaction and translation losses. Net income for the
quarter was a loss of EUR 34&nbsp;million, Philips&#146; share of which was EUR 17
million.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>LG.Philips LCD joint venture (100%)</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>769</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>7</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss) (100%)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(34</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">74</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss) (Philips share = 50%)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(17</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,776</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,738</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,230</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2" color="#00FFFF"><I>LG.Philips Displays joint venture (100%)</I>
</FONT>
<P align="left"><FONT size="2">Sales declined by 5% in USD terms, compared to the first quarter of 2002. The
decline was 22% in EUR terms, resulting from the deterioration of the USD.
Gross margin improved by 1% from last year to 9%. Income from operations included a EUR 22&nbsp;million restructuring charge (Q1 2002:
EUR 182&nbsp;million charge) and was at break-even level. Net income for the quarter was a loss of EUR 34&nbsp;million, Philips&#146; share of
which was EUR 17&nbsp;million.
</FONT>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>LG.Philips Displays joint venture (100%)</B></FONT><BR>
in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Q1</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>934</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales growth</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase, nominal</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(22</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(164</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">in % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(13.7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss) (100%)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(34</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(181</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss) (Philips share = 50%)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(17</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(90</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net operating capital (NOC)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,733</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,056</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Number of employees (FTEs)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>29,924</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">35,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2" color="#00FFFF">Other information
</FONT>
<P align="left"><FONT size="2">As stated in the Annual Report, on January&nbsp;22, 2003, a jury in Raleigh, North
Carolina, USA, delivered a verdict of approximately USD 152&nbsp;million to
Volumetrics, Inc. against the Philips Ultrasound business of Philips Medical
Systems. The claim relates to the decision of Philips not to collaborate with
or acquire Volumetrics at a point in time when Philips was in
discussions with Agilent Technologies, Inc. to purchase its Health Care
Solutions Group. The verdict is not a judgement, and is subject to review by
the trial judge. A decision was originally expected in March 2003, but as yet
has not been delivered. A decision is now expected in the course of the second
quarter, 2003. Philips believes that the facts of the case do not support the verdict.
</FONT>
<P align="center"><FONT size="2">9</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2" color="#00FFFF">Outlook
</FONT>
<P align="left"><FONT size="2">Ongoing economic and political uncertainties mean that Philips will continue to
make business planning on the assumption of no short-term improvement in
economic conditions. Productivity improvements and restructuring programs
initiated during the last two years, together with the continuing
transformation of Philips into a market-driven company, will remain the main
drivers behind the further improvement of our underlying performance.
</FONT>
<P align="left"><FONT size="2">We expect that the Lighting and DAP divisions will continue their solid
performance and outperform their industries throughout the year. CE is
continuing to improve its overall performance, but is more vulnerable to market
weaknesses as a consequence of low consumer confidence levels. The integration
of our Medical Systems division remains on-track to achieve the targeted EUR
350&nbsp;million savings by year-end and performance targets for 2004. The recently
announced recovery plan for Philips Semiconductors is expected to turn this
division back into profitability in Q4.
</FONT>
<P align="left"><FONT size="2">The Company will continue cost reduction initiatives, including the reduction
in overhead costs, and ongoing asset management programs.
</FONT>
<P align="left"><FONT size="2">Dollar related currency movements can continue to negatively impact sales and
to a lesser extent net income, whilst the value of the Company&#146;s financial and
pension assets remain sensitive to volatile stock markets.
</FONT>
<P>&nbsp;
<P align="left"><FONT size="2">Amsterdam, April&nbsp;15, 2003
</FONT>
<P align="left"><FONT size="2">Board of Management</FONT>
<P align="center"><FONT size="2">10</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consolidated statements of income</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>January to March</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cost of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(4,403</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5,229</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Gross margin</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,096</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,369</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Selling expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(1,072</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,254</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">General and administrative expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(373</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(341</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Research and development expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(633</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(759</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Write-off of acquired in-process R&#038;D</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Impairment of goodwill</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(10</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Restructuring and impairment charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(65</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(23</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(2,153</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2,377</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other business income (expenses) &#150; net</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>89</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">81</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>32</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Financial income and expenses:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&#150; interest</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(81</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(102</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&#150; impairment charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&#150; other</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(1</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(82</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(20</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income before taxes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(50</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income taxes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>12</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income after taxes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(38</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Results relating to unconsolidated companies:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&#150; impairment charges</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&#150; other</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(24</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(43</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interests</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(7</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(4</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net income</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(69</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Income from operations</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as a % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>0.5</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as a % of net operating capital (RONA)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1.2</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Weighted average number of common shares outstanding
during the period (in thousands):</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">(after deduction of treasury stock)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>&#149; </B>basic</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,276,292</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,274,920</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>&#149; </B>diluted</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,277,670</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,283,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net earnings per common share in euros:</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>&#149; </B>basic</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.05</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>&#149; </B>diluted</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>(0.05</B></FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">The Group financial statements have been prepared on a basis consistent
with US GAAP, which differs in certain respects from accounting
principles as required by Dutch law (Dutch GAAP). Net income determined
in accordance with Dutch GAAP amounted to a loss of EUR 246&nbsp;million in
the first quarter of 2003, compared to a loss of EUR 149&nbsp;million in the
corresponding period last year. These aggregate amounts result in basic
earnings per common share of a loss of EUR 0.19 in January-March 2003
compared to a loss of EUR 0.12 last year. The difference between Dutch
GAAP and US GAAP is caused by the fact that goodwill is no longer
amortized under US GAAP but instead tested for impairment.
</FONT>
<P align="center"><FONT size="2">11</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consolidated balance sheets and additional ratios</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<P align="left"><FONT size="2" color="#00FFFF"><B>Consolidated balance sheet</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>December 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Current assets:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cash and cash equivalents</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,568</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,858</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Receivables</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>4,885</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,850</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Inventories</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>3,721</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,452</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other current assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>822</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total current assets</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>10,996</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">11,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Unconsolidated companies</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,143</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other non-current financial assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,192</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Non-current receivables</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>248</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other non-current assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,440</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,789</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Property, plant and equipment</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>5,810</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,489</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Intangible assets excl. goodwill</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,657</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Goodwill</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>3,135</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,192</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total assets</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>31,621</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">32,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Current liabilities:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Accounts and notes payable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,914</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,082</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Accrued liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>3,394</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Short-term provisions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,121</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,087</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other current liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>603</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">691</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">831</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividend payable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>460</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">459</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Short-term debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>788</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total current liabilities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>9,280</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10,960</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Long-term debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,354</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Long-term provisions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>2,061</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other non-current liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>615</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">201</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total liabilities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>18,310</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">18,191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">20,261</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interests</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>187</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Stockholders&#146; equity</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>13,124</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,919</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">18,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total liabilities and stockholders&#146; equity</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>31,621</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">32,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Number of common shares
outstanding at the end of period</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>&#149; </B>shares in thousands</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>1,276,462</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,275,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,275,847</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Ratios</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Stockholders&#146; equity,</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>13,124</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,919</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">18,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">per common share in euros</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>10.28</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Inventories as a % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>12.1</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">11.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net debt: group equity ratio</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>30:70</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27:73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">28:72</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Stockholders&#146; equity determined in accordance with Dutch GAAP
amounted to EUR 12,451&nbsp;million as of March&nbsp;31, 2003 compared to
EUR 13,124&nbsp;million under US GAAP. The deviation is caused by the fact that goodwill under Dutch
GAAP has to be amortized and charged to income, whereas under US
GAAP it is no longer amortized, but instead tested for
impairment.
</FONT>

<P align="center"><FONT size="2">12</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consolidated statement of changes in stockholders&#146; equity</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="41%">&nbsp;</TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="35"><FONT size="1"><B>January to March 2003</B></FONT></TD>
</TR>
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    <TD colspan="35"><HR size="1" noshade></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="15"><FONT size="1"><B>Accumulated other comprehensive income (loss)</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Capital in</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Available</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Minimum</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Treasury</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Total stock-</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Common</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>excess of</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Retained</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Translation</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>for sale</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>pension</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Cash flow</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>shares at</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>holders&#146;</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>stock</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>par value</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>earnings</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>differences</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>securities</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>liability</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>hedges</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>cost</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>equity</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
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    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Balance as of January&nbsp;1, 2003</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">263</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">14</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">16,738</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">(1,712</FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">265</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">(353</FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">11</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">(1,307</FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">13,919</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">(69</FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">(69</FONT></TD>
    <TD nowrap bgcolor="#00FFFF"><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net current period change</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(178</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(105</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">9</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">9</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(265</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Reclassifications into income</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(10</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(10</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total comprehensive income (loss), net of tax</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(69</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(178</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(105</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">9</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(1</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(344</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividend payable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(460</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(460</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Purchase of treasury stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&#151;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Re-issuance of treasury stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">2</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">6</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">8</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Stock options accrual</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">1</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">1</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Balance as of March&nbsp;31, 2003</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">263</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">17</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">16,209</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(1,890</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">160</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(344</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">10</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(1,301</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">13,124</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="4" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">13</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consolidated statements of cash flows*</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>January to March</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><I>Cash flows from operating activities:</I></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(69</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Adjustments to reconcile net income to net cash provided by
operating activities:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Depreciation and amortization</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>473</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">496</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Impairment of equity investments</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net gain on sale of assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(44</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(180</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Loss from unconsolidated companies (net of dividends
received)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>25</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interests (net of dividends paid)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>13</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Increase in working capital</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(627</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(498</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Decrease in non-current receivables/other assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>60</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Decrease in provisions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(38</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(121</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other items</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>2</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net cash used for operating activities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(205</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(54</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><I>Cash flows from investing activities:</I></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Purchase of intangible assets (software)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(28</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(38</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Capital expenditures on property, plant and equipment</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(177</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(225</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Proceeds from disposals of property, plant and equipment</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>34</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Proceeds from sale (purchase)&nbsp;of other non-current financial
assets and derivatives</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>177</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Proceeds from sale of businesses (purchase of businesses)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(157</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(219</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net cash used for investing activities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(151</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(187</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash flows before financing activities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(356</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(241</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">For a number of reasons, principally the effects of translation
differences and consolidation changes, certain items in the
statements of cash flows do not correspond to the differences
between the balance sheet amounts for the respective items.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">14</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Consolidated statements of cash flows (continued)*</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>January to March</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash flows before financing activities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(356</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(241</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><I>Cash flows from financing activities:</I></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Increase in debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>66</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Treasury stock transactions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>8</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Dividends paid</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>&#151;</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Net cash provided by financing activities</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>74</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Decrease in cash and cash equivalents</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(282</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(138</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Effect of changes in exchange rates on cash positions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(8</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cash and cash equivalents at beginning of the period</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,858</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Cash and cash equivalents at end of period</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,568</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">For a number of reasons, principally the effects of
translation differences and consolidation changes, certain
items in the statements of cash flows do not correspond to
the differences between the balance sheet amounts for the
respective items.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">15</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Product sectors</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<P align="left"><FONT color="#00FFFF" size="2"><B>Segment revenues and income from operations</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="23"><FONT size="1"><B>January to March</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="23"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="11"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="11"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="11"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="11"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Income (loss) from</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Income (loss) from</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>operations</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>operations</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>as % of</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>as % of</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>segment</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>segment</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>segment</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>segment</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>revenue</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>amount</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>revenues</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>revenues</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>amount</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>revenues</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lighting</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,160</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>173</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>14.9</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,235</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consumer Electronics</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,962</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>73</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>3.7</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DAP</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>463</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>81</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>17.5</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">459</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Semiconductors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,173</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(178</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(15.2</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(108</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(8.3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Medical Systems</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,332</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>70</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>5.3</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Miscellaneous</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>689</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(56</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(8.1</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(31</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3.3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Unallocated</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(131</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(83</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>6,779</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>32</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,888</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Intersegment revenues</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>(280</B></FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2"><B>)</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(290</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Sales</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Income from operations
as a % of sales</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>0.5</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">16</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Product sectors and main countries</B></FONT><BR>
all amounts in millions of euros unless otherwise stated
</FONT>
<P align="left"><FONT size="2" color="#00FFFF"><B>Sales and total assets</B>
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Sales (to third parties)</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Total assets</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>January to March</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lighting</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,154</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>2,676</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,954</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consumer Electronics</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,943</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>2,510</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,211</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DAP</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>458</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">454</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>963</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,082</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Semiconductors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,126</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>7,050</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">8,830</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Medical Systems</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,329</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>6,760</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,955</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Miscellaneous</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>489</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>5,259</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,944</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Unallocated</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>6,403</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>31,621</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2" color="#00FFFF"><B>Sales and long-lived assets</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Sales (to third parties)</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Long-lived assets *</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>January to March</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March 31,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Netherlands</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>295</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,581</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">United States</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,676</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,257</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>5,325</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Germany</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>524</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>655</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">France</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>449</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>425</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">United Kingdom</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>282</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">366</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>275</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">202</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">China</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>561</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>358</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other countries</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>2,712</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>1,983</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,668</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><HR size="1" noshade></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Total</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" bgcolor="#00FFFF"><FONT size="2"><B>6,499</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2"><B>10,602</B></FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">Includes property, plant and equipment and intangible assets-net.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">17</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><FONT color="#00FFFF"><B>Philips quarterly statistics</B></FONT><BR>
all amounts in millions of euros unless otherwise stated; percentage increases always
in relation to the corresponding period of previous year
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="15"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="15"><FONT size="1"><B>2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="15"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="15"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1st quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2nd quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>3rd quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>4th quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1st quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2nd quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>3rd quarter</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>4th quarter</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,986</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">8,923</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">6,499</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(4</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(14</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">32</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">0.5</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(77</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(56</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,355</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(330</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,530</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(69</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(90</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&#151;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">per common share in euros</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1.07</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(0.25</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1.20</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(0.05</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>January-</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>June</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>September</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>December</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>March</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>June</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>September</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>December</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">15,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">22,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,820</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">6,499</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(14</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income (loss)&nbsp;from operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">32</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">0.5</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(77</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(56</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as a % of net operating capital (RONA)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">1.2</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,346</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,676</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,206</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(69</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">% increase</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(90</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">&#151;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">as a % of stockholders&#146; equity (ROE)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(14.7</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(13.3</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(19.2</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(2.1</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">per common share in euros</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1.06</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1.31</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2.51</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">(0.05</FONT></TD>
    <TD bgcolor="#00FFFF" nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="15"><FONT size="1"><B>period ending 2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="15"><FONT size="1"><B>period ending 2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="15"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="15"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Inventories as % of sales</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">11.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">12.1</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net debt: group equity ratio</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">28:72</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30:70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30:70</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27:73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">30:70</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total employees (in thousands)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">170</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
    <TD bgcolor="#00FFFF" align="right"><FONT size="2">166</FONT></TD>
    <TD bgcolor="#00FFFF"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">Information also available on
Internet, address:
www.investor.philips.com<BR>
Printed in the Netherlands
</FONT>

<P align="center"><FONT size="2">18</FONT>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Philips and BenQ form Joint Venture in Optical Storage" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips and BenQ form Joint Venture in Optical Storage
</FONT>
<P align="left"><FONT size="2"><B>Amsterdam, the Netherlands and
Taipei, Taiwan, February&nbsp;12, 2003 &#151; Royal
Philips Electronics of the Netherlands (AEX: PHI, NYSE: PHG) and BenQ
Corporation (Taipei Stock Exchange: 2352TT) today announced the establishment
of an optical storage joint venture company, Philips BenQ Digital Storage, to
cooperate in the areas of new optical standards, research, and particularly in
the definition of product roadmaps, product development, manufacturing of
products, and customer support of optical storage devices for data
applications.</B>
</FONT>
<P align="left"><FONT size="2">The company, headquartered in Taipei, Taiwan and operational in March 2003
will have outstanding shares of 51% for Philips and 49% for BenQ. The joint
venture will pave the way for both companies to leverage their strengths,
creating a resource-integrated company that will provide innovative next
generation storage solutions. Philips BenQ Digital Storage aims at a mid-term
market-share of fifteen percent in a total market of two-hundred million units
annually, which currently has a value of EUR 8&nbsp;billion.
</FONT>
<P align="left"><FONT size="2">Commenting on the deal, Mr.&nbsp;Arthur van der Poel, member of Philips&#146; Board of
Management added, &#147;This joint venture concludes the series of measures taken
to bring Optical Storage back to profitability and will position us well for
continued participation in the data segment in a profitable way. The joint
venture builds on a long-standing relationship between Philips and BenQ. The
cooperation in the new company will further strengthen the successful DVD&#043;RW
platform&#148;.
</FONT>
<P align="left"><FONT size="2">K.Y. Lee, Chairman and CEO of BenQ Corporation, stated &#147;Philips is renowned
for its research and intellectual property portfolio while BenQ is strong in
development, manufacturing and marketing. The new company will prove to be a
strong force in the optical storage industry, combining strengths in research,
cost effective manufacturing, and fast time-to-market.&#148;
</FONT>
<P align="left"><FONT size="2">The joint venture builds on the dedicated design center for reading and/or
recording of data applications which was established in April 2002. It may
later include optical storage devices for consumer applications.
</FONT>
<P align="left"><FONT size="2"><B>About BenQ</B>
</FONT>

<P align="left"><FONT size="2">BenQ is an industry leader in networking lifestyle devices with an expertise
that encompasses the display, storage, imaging, wireless and broadband areas.
BenQ has manufacturing plants in Malaysia, Mexico, China and Taiwan. The
company has 13,000 employees worldwide, supporting a strong global sales
marketing and service network spanning Asia Pacific, Europe and the Americas.
BenQ has research and development facilities in Taiwan (Hsinchu Lab), China
(Suzhou Software Development Center) and California (Wireless Technology
Center), and has close to 1500 research and development employees in Suzhou,
Taipei, Taoyuan, Hsinchu and San Diego. BenQ has amassed over 928 global
patents. 2002 estimated revenues exceed US$3.2&nbsp;billion dollars. For more
information about BenQ, please visit our website at www.BenQ.com.
</FONT>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at </I><I><B>www.philips.com/newscenter</B></I>
</FONT>
<P align="left"><FONT size="2"><B>Safe Harbor Statement</B>
</FONT>

<P align="left"><FONT size="2"><I>This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economies, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips
and its competitors, raw materials and employee costs, changes in future
exchange and interest rates (in particular, changes in the euro and the US
dollar can materially effect results), tax rates and future business
combinations, acquisitions or dispositions and the rate of technical changes.
Market share estimates contained in this report are based on outside sources
such as specialized research institutes, industry and dealer panels, etc. in
combination with management estimates.</I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<!-- link1 "Philips appoints Johan van Splunter to succeed Ad Veenhof as CEO of domestic appliance division" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips appoints Johan van Splunter to succeed Ad Veenhof as CEO of domestic
appliance division
</FONT>
<P align="left"><FONT size="2"><B>Amsterdam, The Netherlands, March&nbsp;3, 2003 &#151; Royal Philips Electronics (AEX:
PHI, NYSE: PHG) today announced that Mr.&nbsp;Ad Veenhof (57), Senior Vice
President and member of the Group Management Committee, and CEO of Philips&#146;
Domestic Appliances and Personal Care (DAP)&nbsp;division since 1996, has expressed
a wish to step down from Philips after more than 30&nbsp;years with the company. He
will leave as of May&nbsp;1, 2003.</B>
</FONT>
<P align="left"><FONT size="2">Mr.&nbsp;Veenhof will be succeeded by Johan van Splunter (57), currently CEO of
Philips in Asia. Mr. van Splunter joined Philips in 1969 in DAP, followed by
an international career, including a period of eleven years in senior
management positions at Grundig, before returning to Philips in 1997. Mr.&nbsp;Van
Splunter will also take up his new role as of May&nbsp;1, 2003.
</FONT>
<P align="left"><FONT size="2"><B>Johan A van Splunter (57)</B>
</FONT>

<P align="left"><FONT size="2">Mr.&nbsp;Johan A Van Splunter was born on 24 March 1945 in Beverwijk, The
Netherlands and studied Business Economics at the University of Amsterdam. Mr.
Van Splunter started to work for Philips, The Netherlands, in 1969 as Product
Manager in the Personal Care Division. In 1976 he became Managing Director,
Consumer Division for Philips Mexico. During this time Philips pioneered with
the first industrial plants in the Mexican border zone.
</FONT>
<P align="left"><FONT size="2">In 1985 he moved to Germany where he became Managing Director at Grundig and
later Executive Vice President and member of the Board of Management. Mr. van
Splunter was instrumental in the change of manufacturing locations from
Western to Eastern Europe when the communist bloc opened after the fall of the
Berlin Wall.
</FONT>
<P align="left"><FONT size="2">In 1997 he moved to Johannesburg as Chairman &#038; CEO of Philips for Southern
Africa and in 1999 moved to Singapore to become President and Chairman of
Philips Electronics Asia Pacific region. In Singapore, he is a member of the
Board of the Economic Review Committee and Chairman of the Sub-Committee for
Manufacturing.
</FONT>
<P align="left"><FONT size="2">Johan is married and has two daughters. He is fluent in Dutch, English,
French, Spanish and German.
</FONT>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>

<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at  </I><I><B>www.philips.com/newscenter</B></I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<!-- link1 "Philips&#146; Connected Home is here and now" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips&#146; Connected Home is here and now
</FONT>
<P align="left"><FONT size="2"><B>Hannover, Germany, March&nbsp;12, 2003 &#151; Royal Philips Electronics (NYSE:PHG,
AEX:PHI) CEO, Gerard Kleisterlee, today outlined the company&#146;s vision for the
Connected Home, a broadband powered environment of interconnected devices,
experiences and services. He also announced a new strategic partnership with
KPN that will speed the development of the enabling technologies and services
that make the Connected Home an ever-increasing reality.</B>
</FONT>
<P align="left"><FONT size="2">Gerard Kleisterlee presented a compelling case for Philips&#146; leadership
position in the Connected Home space. Outlining the products Philips has on
the market today to enable a Connected Home, he also presented a picture of
the home of tomorrow &#151; fewer wires and fewer boxes making for a more
comfortable living environment with intuitive technology. No longer will
consumers have to rely on stand-alone devices with stand-alone functions.
Instead content and information will be accessible on any device where, when
and how they desire it.
</FONT>
<P align="left"><FONT size="2">Gerard Kleisterlee said: &#147;Philips&#146; vision of the Connected Home extends beyond
the living room and entertainment and serves the whole home. With our
strengths in lighting, healthcare and household appliances we will be able to
offer consumers a complete set of interlocking solutions that provide a more
complete Connected Home living environment. But we will not only continue to
innovate on technology, we will also have to rally our competitors, partners
and governments to make the Connected Home a viable and sustainable prospect
for consumers.&#148;
</FONT>
<P align="left"><FONT size="2"><B>Today&#146;s Products that Power the Connected Home</B>
</FONT>

<P align="left"><FONT size="2">&#147;This year&#146;s CeBIT for Philips is about showing the results of our work and
research in the form of real products that consumers can buy now to build a
Connected Home. We have products available like Streamium &#151; our Internet
radio with hi-fi quality and functionality.
</FONT>
<P align="left"><FONT size="2">Today, Philips is also shipping its DesXcape, the smart, detachable, wireless,
PC display that allows people to work with their PC applications anywhere
around the home or office. All Philips Connected Home products use WiFi.
</FONT>
<P align="left"><FONT size="2"><B>Collaborating for Critical Mass</B>
</FONT>

<P align="left"><FONT size="2">Gerard Kleisterlee also presented Philips&#146; focus on enabling technologies for
the Connected Home through its alliances with key partners such as Telefonica
and the new strategic partnership announced today with KPN. Through the KPN
Telecom partnership, Philips and KPN will work to jointly develop, market and
sell broadband ready products and services, through bundled offerings. They
will make it easier for consumers to have home-networked broadband
connectivity and to experience home entertainment, productivity and personal
expression.
</FONT>
<P align="left"><FONT size="2">Gerard Kleisterlee also addressed issues that Philips is taking leadership on
to make the Connected Home possible such as broadband availability, Digital
Rights Management technology and common wireless connectivity standards such
as WiFi
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="left"><FONT size="2">and Bluetooth. In all these areas, Philips is doing what it has successfully
done with the advent of other successful technologies such as the CD and DVD:
bring partners and competitors to the table to reach consensus on common
standards and formats that will grow markets for all, spur innovation and
avoid consumer confusion and frustration.
</FONT>
<P align="left"><FONT size="2">The following key products being showcased at CeBIT 2003 are the Connected
Home building blocks:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Streamium Broadband Internet radio allows consumers to enjoy
online music and listen to it at CD and stereo quality. The Streamium
connects directly to either a cable or DSL broadband Internet service
and allows consumers to listen to MP3 and Internet based music
anywhere in their networked home.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Philips continues to remove the restrictions of a home office
with the DesXcape detachable monitor. Instead of being tied to one
room where the PC resides, the DesXcape gives users access to
applications that can be held on a PC from anywhere within the home
using a wireless network.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">iPronto, the dashboard for the digital home, revolutionizes
control of home cinema and home automation products and can control
over 500 brands of different devices and services. iPronto is not only
a control device but it can also access the Internet via WiFi. That
means it receives programming information, news, weather and a wealth
of other online content.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Wireless Digital Multimedia Receiver bridges the traditionally
separate PC and home entertainment worlds via an easy-to-install and
use solution that wirelessly streams PC based multimedia to television
and stereo systems. This means users can now enjoy their PC-based
multimedia content together with family and friends in the convenience
and comfort of their normal home setting.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">To read the full text of Gerard Kleisterlee&#146;s presentation and for images,
please visit www.philips.com/cebit
</FONT>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>

<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at  </I><I><B>www.philips.com/newscenter</B></I>
</FONT>
<P align="left"><FONT size="2"><B>Safe Harbor Statement</B>
</FONT>

<P align="left"><FONT size="2"><I>This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items. By their
nature, forward-looking statements involve risk and uncertainty because they relate to events
and</I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="left"><FONT size="2"><I>depend on circumstances that will occur in the future. There are a number
of factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economies, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips
and its competitors, raw materials and employee costs, changes in future
exchange and interest rates (in particular, changes in the euro and the US
dollar can materially effect results), tax rates and future business
combinations, acquisitions or dispositions and the rate of technical changes.
Market share estimates contained in this report are based on outside sources
such as specialized research institutes, industry and dealer panels, etc. in
combination with management estimates.</I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<!-- link1 "Philips and KPN agree to broadband alliance" -->
<DIV align="left"><A NAME="005"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips and KPN agree to broadband alliance
</FONT>
<P align="left"><FONT size="2"><B>AMSTERDAM, THE NETHERLANDS March&nbsp;12, 2003 &#151; Royal Philips Electronics (AEX:
PHI, NYSE:PHG) and KPN today announced an alliance, to jointly develop the use
of broadband and associated enabling technologies in the Connected Home. The
alliance will see the combination of Philips products and technologies with
KPN&#146;s broadband platform. Initially focused on the Dutch consumer market, both
companies envisage that the alliance will also be a first step towards the
business-to-business market, where there are growing demands in financial
services and healthcare for broadband connectivity solutions.</B>
</FONT>
<P align="left"><FONT size="2">Philips and KPN plan to jointly offer consumers a complete package of Philips&#146;
connectivity devices with KPN broadband service and installation to drive the
adoption of universal always-on broadband solutions. This Philips-KPN bundled
offering will be available to consumers through KPN retail outlets and in
partnership with retail channels.
</FONT>
<P align="left"><FONT size="2">Philips views broadband as critical to the Connected Home because it enables
the next phase of content delivery &#151; which moves beyond static Internet Web
pages to the delivery of streaming music and videos. Ultimately, this will
shift the way consumers view entertainment &#151; and enable them to choose the
content they want, when they want it.
</FONT>
<P align="left"><FONT size="2">&#147;Widespread adoption of broadband is key, without it, all the buzz about a
Connected Home is meaningless. This is why Philips has announced today its
alliance with KPN, to jointly commercialize broadband ready, multimedia and
entertainment products and services,&#148; said Gottfried Dutine, Philips Executive
Vice-President and member of the Board of Management. &#147;We believe the
Philips-KPN Alliance will lay the foundation for a broadband rich, home
environment that fosters personal expression through next-generation
applications like full speech interactivity, reactive lighting, and seamless
content sharing.&#148;
</FONT>
<P align="left"><FONT size="2">KPN Mobile CEO Guy Demuynck says &#147;this alliance will boost KPN&#146;s broadband
business by delivering high quality connectivity and end-to-end broadband
services. The two companies Philips and KPN are joining core competencies to
bring the broadband benefits to their customers. This will be an accelerator
for growth in our broadband business.&#148;
</FONT>
<P align="left"><FONT size="2">The Philips-KPN Alliance will also focus on commercializing a full range of
broadband, multimedia and entertainment products and services for the Dutch
market by providing joint product demonstrations. The two companies plan to
create high visibility connected solutions displays in key KPN retail outlets
and other retail partner outlets. These demos would showcase the complete
portfolio of Philips&#146; connected solutions enabled by KPN service in order to
educate consumers on the profound impact broadband will have on home
entertainment, personal expression and productivity applications.
</FONT>
<P align="left"><FONT size="2">Additionally, the companies will cooperate on product research and
development, and jointly research new trends and technologies in the connected
home space,
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="left"><FONT size="2">driving the adoption and wider use of digital home applications using
broadband. In a structured and consistent way, the Philips-KPN alliance will
share product and service roadmaps, as well as actively collaborate on
product/service planning so as to align future offerings and drive incremental
revenue for both parties. New products will be showcased through the alliance
as and when they reach the market.
</FONT>
<P align="left"><FONT size="2">Beyond meeting the consumer demand for broadband in the connected home, the
Philips-KPN alliance will also stimulate broadband deployment throughout
various types of connectivity environments. The alliance plans to identify and
jointly explore connected solutions opportunities for consumers in such
diverse sectors as medical, financial services, insurance, as well as retail
and hospitality.
</FONT>
<P align="left"><FONT size="2">Recent partnerships with the government of Singapore as well as the telecom
alliance with Telefonica clearly indicate Philips broadband technology lead
over its closest competitors. Today&#146;s announcement with KPN is further
evidence that Philips is offering always-on broadband solutions that are
available to consumers both here and now. Philips only expects to make further
announcements in the near future on the diverse ways it is working with
leading content and broadband providers to exchange information and
collaborate in product development.
</FONT>
<P align="left"><FONT size="2">Philips is a leading supplier of branded products and b-to-b solutions for use
in the Connected Home, applying its core technology strengths in Displays,
Connectivity, Storage and Digital Video Processing across a range of
entertainment and communications applications. Philips already has a number of
broadband connected products on the market, including the Streamium internet
audio system, the iPronto a customizable display-based wireless device for
controlling the digital home, and a full range of wireless connectivity
solutions. More products are due on the market in the coming year.
</FONT>
<P align="left"><FONT size="2"><B>About KPN</B>
</FONT>

<P align="left"><FONT size="2"><I>KPN offers high-quality telecommunication services to both consumers and
businesses. Our core businesses are: telephony and data/IP services through

our fixed network in The Netherlands, data/IP services in Western Europe
through KPN Eurorings and mobile services in The Netherlands, Germany and
Belgium. KPN is the market leader in the major segments of the Dutch
telecommunications market. Through E-Plus in Germany and BASE in Belgium, we
are the third mobile operator in both countries. At the end of 2002, with
38,118 employees, KPN serviced 7.9&nbsp;million fixed line, 13.4&nbsp;million mobile and
1.4&nbsp;million Internet customers.</I>
</FONT>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>

<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at  </I><I><B>www.philips.com/newscenter</B></I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="left"><FONT size="2"><B>Safe Harbor Statement</B>
</FONT>

<P align="left"><FONT size="2"><I>This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economies, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips
and its competitors, raw materials and employee costs, changes in future
exchange and interest rates (in particular, changes in the euro and the US
dollar can materially effect results), tax rates and future business
combinations, acquisitions or dispositions and the rate of technical changes.
Market share estimates contained in this report are based on outside sources
such as specialized research institutes, industry and dealer panels, etc. in
combination with management estimates</I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<!-- link1 "Philips unveils recovery plan for Semiconductor division" -->
<DIV align="left"><A NAME="006"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips unveils recovery plan for Semiconductor division
</FONT>
<P align="left"><FONT size="2"><B>Division expected to return to profitability in Q4 2003</B>
</FONT>
<P align="left"><FONT size="2"><B>Amsterdam, the Netherlands, March&nbsp;13, 2003 &#151; Royal Philips Electronics (AEX:
PHI, NYSE:PHG) today outlined its action plan to return its Semiconductor
division to profitability in the fourth quarter of this year.</B>
</FONT>
<P align="left"><FONT size="2">The plan includes five main elements:
</FONT>
<P align="left"><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>FOCUS</B>: An acceleration of the sharpening of focus on Philips
Semiconductors&#146; core portfolio of connected consumer applications, both in
terms of strategy and R&#038;D spending, while exiting unprofitable non-core
businesses. This focus is expected to deliver annualized savings of EUR 200
million, leading to a EUR 240&nbsp;million per quarter R&#038;D spending rate by Q4
2003, excluding the Mobile Display Systems business.
</FONT>
<P align="left"><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CAPACITY</B>: In addition to the previously announced closure of Philips&#146;
semiconductor fabrication operation (fab)&nbsp;in Albuquerque, New Mexico, Philips
plans to close its San Antonio, Texas fab in 2003. The combined Albuquerque
and San Antonio actions will reduce overall CMOS capacity by approximately
20%, leading to a utilization rate that is expected to deliver positive
operating results in the fourth quarter and still include capacity for growth.
The San Antonio closure will result in restructuring charges of approximately
EUR 200&nbsp;million; EUR 30&nbsp;million of which will be taken in Q1 2003, with EUR 70
million and EUR 100&nbsp;million taken in Q2 and Q3 respectively. Of the
anticipated EUR 200&nbsp;million charges, EUR 45&nbsp;million are cash costs.
</FONT>
<P align="left"><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SIMPLIFICATION</B>: Over the course of 2003, Philips Semiconductors will
complete the consolidation of a number of smaller non-manufacturing related
sites and associated businesses, mainly in Europe and the USA.
</FONT>
<P align="left"><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PROCESS IMPROVEMENTS</B>: A heightened focus on supply chain management and
reduction of working capital will be driven by the activation of new IT
systems. Customer lead times in particular will be dramatically improved as a
result, including a reduction in end-to-end lead times from the initiation of
an order to product shipment by up to 30&nbsp;days to approximately 85&nbsp;days,
approaching best-in-class per external benchmarks. As well as the increased
customer intimacy, these process improvements will lead to annual savings of
approximately EUR 50&nbsp;million.
</FONT>
<P align="left"><FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DESIGN WINS</B>: Increased revenues will be seen in the second half of 2003 as
programs related to earlier design wins take off. Examples include Nexperia&#153;
products for the communications and consumer markets, and other products in
fast growing categories where Philips has a unique proposition, such as CMOS
cameras and FM radio chips for mobile phones.
</FONT>
<P align="left"><FONT size="2">&#147;With attention to swift and exact execution, we expect that these actions
will see Philips Semiconductors again making a positive contribution to the
Philips Group in the fourth quarter of this year,&#148; said Scott McGregor, CEO of
Philips Semiconductors. &#147;With the ongoing softness in the industry, we still
face a tough
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P align="left"><FONT size="2">couple of quarters before our efforts will truly show through. As
we said at the
presentation of our 2002 results, we are prepared to take the tough decisions
to not only put things back on track, but more importantly, create a healthy
and sustainable profitable business for the future. We know that parts of the
plan will be painful to the organization, and our San Antonio employees in
particular, and we will do everything we can to work together with all
involved, to minimize the impact.&#148;
</FONT>
<P align="left"><FONT size="2">The above actions will involve an overall headcount reduction of approximately
1,600 by the end of 2003, including approximately 520 in San Antonio. Philips
will work closely with employees and local leaders to offset as far as
possible the negative consequences of the decision. Most of the San Antonio
product lines are already dual-sourced, and others will be relocated to other
Philips facilities, minimizing the impact on existing customers.
</FONT>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>

<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at  </I><I><B>www.philips.com/newscenter</B></I>
</FONT>
<P align="left"><FONT size="2"><B>Safe Harbor Statement</B>
</FONT>

<P align="left"><FONT size="2"><I>This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to these items. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economies, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips
and its competitors, raw materials and employee costs, changes in future
exchange and interest rates (in particular, changes in the euro and the US
dollar can materially effect results), tax rates and future business
combinations, acquisitions or dispositions and the rate of technical changes.
Market share estimates contained in this report are based on outside sources
such as specialized research institutes, industry and dealer panels, etc. in
combination with management estimates.</I>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "Philips launches first sustainability report" -->
<DIV align="left"><A NAME="007"></A></DIV>
<P align="left"><FONT color="#00FFFF" size="2">Philips launches first sustainability report
</FONT>
<P align="left"><FONT size="2"><B>Amsterdam, The Netherlands, March&nbsp;27, 2003 &#151; Royal Philips Electronics
(NYSE:PHG, AEX:PHI) today launches the company&#146;s first annual Sustainability
Report, adding detailed accountability for economic and social responsibility
to its former Environmental Report. The reporting initiative is in line with
the steps taken in recent years to increase transparency and accountability,
adhering to the company&#146;s business principles. Philips also announced that the
company has established a Sustainability Board, Corporate Sustainability
Office, corporate Sustainability Policy and a global sustainability
sponsorship initiative.</B>
</FONT>
<P align="left"><FONT size="2">During the annual shareholders meeting, Philips&#146; CEO, Gerard Kleisterlee will
explain that sustainable development is a fundamental part of Philips&#146;
heritage and future growth. &#147;Philips&#146; brand has always been associated with
improving the quality of people&#146;s lives. Our founders, Anton and Gerard
Philips, already believed that there was no difference between doing business
and practicing sustainable business,&#148; said Kleisterlee, &#147;With our recent
Sustainability commitments, we are living up to the challenge of making things
better and proving that sustainability is part of our company&#146;s DNA.&#148;
</FONT>
<P align="left"><FONT size="2">To tackle the issue of diversity and inclusion, targeted programs will be
started in 2003 to reach the goal of acquiring a world-class workforce.
Philips is committed to increasing the number of women in senior management &#151;
raising the percentage to at least 10% within five years, more than doubling
it from the current 4%. Philips is also committed to improving regional
balance in senior management positions, particularly in Asia.
</FONT>
<P align="left"><FONT size="2">Regarding Environmental responsibility, Philips introduced in 2002 its third
action program in a row called EcoVision 2002 &#151; 2005. On comparable bases,
and after adjustment for production fluctuations, in 2002 waste and water were
reduced by 16% and the energy consumption with 8% compared to 2001. Also, a
number of products were introduced that met the Green Flagship status
classification for products that offer significantly improved environmental
performance. One example is the 150S3F LCD Monitor, offering 20% better energy
consumption than comparable products in its category.
</FONT>
<P align="left"><FONT size="2">As a member of the World Business Council for Sustainable Development (WBCSD),
Philips measured and reported along the core indicators put forward by the
Global Reporting Initiative, the world&#146;s most recognized and respected set of
reporting guidelines, and had the Sustainability Report verified by KPMG.
</FONT>
<P align="left"><FONT size="2">Philips plans to apply its heritage in research and design to its sustainable
business practices. Qualitative research projects are ongoing that explore
what makes life better for different people, different cultures, taking into
account factors like generation, gender and social norms. Projects that help
to explore possibilities for sustainable business in emerging markets.
</FONT>
<P align="left"><FONT size="2">Additional information and a full copy of the Sustainability Report are
available at: www.philips.com/sustainability or click here to download the PDF
file.</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><B>About Royal Philips Electronics</B>
</FONT>

<P align="left"><FONT size="2"><I>Royal Philips Electronics of the Netherlands is one of the world&#146;s biggest
electronics companies and Europe&#146;s largest, with sales of EUR 31.8&nbsp;billion in
2002. It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 166,000 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. News from
Philips is located at </I><I><B>www.philips.com/newscenter</B></I>
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>



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