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<SEC-DOCUMENT>0001156973-04-000145.txt : 20040211
<SEC-HEADER>0001156973-04-000145.hdr.sgml : 20040211
<ACCEPTANCE-DATETIME>20040211073209
ACCESSION NUMBER:		0001156973-04-000145
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040210
FILED AS OF DATE:		20040211

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:		04583775

	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 ELECTRONICS N V
		DATE OF NAME CHANGE:	19930727

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS NV
		DATE OF NAME CHANGE:	19910903
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>u47109e6vk.htm
<DESCRIPTION>FORM 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>2004 &#151; 2</B>
</FONT>

<P align="center"><FONT size="4">SECURITIES AND EXCHANGE COMMISSION
</FONT>
<P align="center"><FONT size="3">Washington, D.C.<BR>
20549
</FONT>
<P align="center"><HR size="1" noshade width="26%">
<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
January&nbsp;13, 2004 through February&nbsp;10, 2004
</FONT>
<P align="center"><HR size="1" noshade width="26%">
<P align="center"><FONT size="6"><B>KONINKLIJKE PHILIPS ELECTRONICS N.V.
</B>
</FONT>

<P align="center"><HR size="1" noshade width="60%">
<DIV align="center"><FONT size="2">(Name of registrant)
</FONT>
</DIV>

<P align="center"><FONT size="2">Breitner Center, Amstelplein 2, 1096 BC Amsterdam, The Netherlands
</FONT>
<P align="center"><HR size="1" noshade width="60%">
<DIV align="center"><FONT size="2">(Address of principal executive offices)
</FONT>
</DIV>

<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 align="center"><FONT size="2">A. Westerlaken<BR>
Koninklijke Philips Electronics N.V.<BR>
Amstelplein 2<BR>
1096 BC Amsterdam &#150; The Netherlands
</FONT>


<P align="center"><FONT size="2">&nbsp;
</FONT>
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<!-- 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></TD><TD colspan="8"><A HREF="#000">Collaboration Between Philips and Unilever Leads to<BR> the Launch of &#145;Perfective&#146;</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Philips Steps up Rollable-Display Development</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Philips and IBM Join Forces in the RFID and Smart Card Market Place</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Philips and Neusoft to Form&nbsp;Medical Systems Joint Venture in China</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Report on the Performance of the Philips Group</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 press releases entitled:
</FONT>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="2%" nowrap align="left"><FONT size="2">&#149;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&#147;Collaboration Between Philips and
Unilever Leads to the Launch of &#145;Perfective&#146;&nbsp;&#148;, dated
January&nbsp;20, 2004;</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="2%" nowrap align="left"><FONT size="2">&#149;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&#147;Philips Steps up Rollable-Display
Development&#148;, dated January&nbsp;26, 2004;</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="2%" nowrap align="left"><FONT size="2">&#149;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&#147;Philips and IBM Join Forces in the RFID
and Smart Card Market Place&#148;, dated January&nbsp;26, 2004;</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="2%" nowrap align="left"><FONT size="2">&#149;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&#147;Philips and Neusoft to Form Medical
Systems Joint Venture in China&#148;, dated February&nbsp;9, 2004;</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="2%" nowrap align="left"><FONT size="2">&#149;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&#147;Report on the Performance of the Philips
Group&#148;, dated February&nbsp;10, 2004;</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 10th day
of February 2004.
</FONT>

<P align="center"><FONT size="2"><B>KONINKLIJKE PHILIPS ELECTRONICS N.V.
</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;
</FONT>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ G.J. Kleisterlee<BR>
</FONT><HR size="1" noshade><FONT size="2">
<B>G.J. Kleisterlee</B><BR>
(President,<BR>
Chairman of the Board of Management)</FONT></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ J.H.M. Hommen<BR>
</FONT><HR size="1" noshade><FONT size="2">
<B>J.H.M. Hommen</B><BR>
(Vice-Chairman of the Board of Management<BR>
and Chief Financial Officer)</FONT></TD>
</TR>
</TABLE>
</DIV>



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


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<!-- link2 "Collaboration Between Philips and Unilever Leads to<BR> the Launch of &#145;Perfective&#146;" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="left"><FONT size="2">Collaboration Between Philips and
Unilever Leads to the Launch of &#145;Perfective&#146;
</FONT>

<P align="left"><FONT size="2">Amsterdam, 20 January 2004 &#150; Having worked together intensively on market
research, R&#038;D and marketing, Philips and Unilever are launching a joint
product on the Dutch market in April 2004: Perfective. This product represents
the integration of a Philips Perfective electric iron and a specially
developed Robijn cartridge containing an anti-crease agent. Ironing with
Perfective yields the smoothest end result in a single movement. Philips and
Unilever are thus meeting consumer demand for greater ironing convenience.
</FONT>
<P align="left"><FONT size="2">The modern consumer is devoting increasing attention to garment care. Clothing
is an important way of showing who you are. Neatly ironed clothes are part of
this &#150; ironing is putting the final touches to your clothes before you put
them away them or wear them. And ironing not only means removing creases, but
also bestowing care and attention on your clothing. Market research has shown
that the consumer wants a perfect end result without having to spend too much
time on this. That is why Philips and Unilever got together two years ago to
develop jointly a new product that matches current consumer trends towards
quality, convenience and speed. This collaboration combines the strengths of
two market leaders by linking Philips&#146;s technological expertise with
Unilever&#146;s thoroughgoing knowledge of the care of fabrics.
</FONT>
<P align="left"><FONT size="2">Perfective: professional result in one movement
</FONT>
<P align="left"><FONT size="2">Perfective is an innovative ironing concept that consists of hardware &#151; the
Philips electric iron &#151; and software &#151; the Robijn cartridge. The cartridge,
which is placed in the Philips Perfective by the consumer, contains a
specially developed anti-crease agent. By pressing the electronic spray
button, you release a fine spray of anti-crease liquid over the item of
clothing that is being ironed. The underside of the iron then activates this
liquid, ensuring a smooth result. Research by TNO shows that fabrics ironed
with Perfective are appreciably smoother than those ironed with the present
generation of electric irons.
</FONT>
<P align="left"><FONT size="2">Surveys of consumers in several Western European countries have also
demonstrated that there is a real need for the Perfective concept. Consumers
are very enthusiastic about the results obtained with Perfective and show a
high level of willingness to buy. The combination of a Philips electric iron
and a Robijn cartridge also captures people&#146;s imagination.
</FONT>
<P align="left"><FONT size="2">Perfective will be available in shops in the Netherlands from April 2004. The
recommended retail price of Perfective is <FONT face="'Times New Roman',Times">&#128;</FONT> 99. The cartridges of anti-crease
agent will be sold in the supermarket. To mark the introduction of Perfective,
a special starter pack will go on sale that contains two Robijn cartridges of
anti-crease agent together with the Philips Perfective. The product launch
will be supported by an advertising campaign on TV and in the print media and
by demonstrations in shops. For the time being, Perfective will only be
introduced in the Netherlands.
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">The partners in Perfective
</FONT>
<P align="left"><FONT size="2">Philips has many years of experience of strategic alliances. A well-known
example is, of course, Senseo, the coffee maker launched together with Douwe
Egberts of the firm Sara Lee. In the Netherlands Philips is the market leader
in traditional electric irons and is worldwide the number 1 brand in this
product.
</FONT>
<P align="left"><FONT size="2">Unilever, the British-Dutch multinational, has been serving the consumer
market for food, household and personal care products for more than 70&nbsp;years
now. Its international, regional and local brands are sold in approximately
150 countries. Some of its familiar brands in household &#038; personal care
products are Axe, Cif, Comfort, Dove, Glorix, Omo, Rexona, Robijn and Sunil.
Unilever is Europe&#146;s market leader in garment care, with leading brands such
as Comfort and Robijn.
</FONT>
<P align="left"><FONT size="2">About Unilever
</FONT>
<P align="left"><FONT size="2">In 2002 Unilever posted total sales of <FONT face="'Times New Roman',Times">&#128;</FONT> 48.8&nbsp;billion with 247,000 employees
and with facilities in approximately 100 countries. It invested <FONT face="'Times New Roman',Times">&#128;</FONT> 1,166
million in research and development (roughly 2.4% of its sales). For more
information about Unilever: www.unilever.nl.
</FONT>
<P align="left"><FONT size="2">About Royal Philips Electronics
</FONT>
<P align="left"><FONT size="2">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 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, semiconductors,
and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt,
Amsterdam and other stock exchanges. News from Philips is located at
www.philips.com/newscenter.
</FONT>
<P align="left"><FONT size="2">For further information:<BR>
Ren&#233; Westbroek<BR>
Philips Netherlands Media Relations<BR>
Tel.:&#043;31 402787833
</FONT>
<P align="left"><FONT size="2">Unilever Press office<BR>
Tel.:&#043;31 102174844
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">January&nbsp;26, 2004
</FONT>
<!-- link2 "Philips Steps up Rollable-Display Development" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left"><FONT size="2">Philips Steps up Rollable-Display Development
</FONT>

<P align="left"><FONT size="2">Based on years of groundbreaking work on polymer electronics, Philips is
capable of producing prototypes of ultra-thin, large-area, rollable displays
on a routine basis and intends to rapidly move towards an industrially
feasible production process. The displays combine active-matrix polymer
driving electronics with a reflective &#145;electronic ink&#146; front plane on an
extremely thin sheet of plastic. Philips publishes the current status of its
technology in the 1 February issue of the scientific magazine Nature
Materials.
</FONT>
<P align="left"><FONT size="2">Lightweight, large-area displays that are unbreakable and can be rolled up
into a small-sized housing when not actively used, are particularly attractive
for mobile applications. Ultimately, large-area displays could become
feasible, which are so flexible that they can be integrated into everyday
objects like a pen. The availability of such displays would greatly stimulate
the advance of electronic books, newspapers and magazines, and also new
services offered by (third generation) mobile network operators. These
applications currently depend on fragile, heavy and bulky laptops or small,
low-resolution displays of mobile phones, which both have clear drawbacks.
</FONT>
<P align="left"><FONT size="2">Philips not only wants to prove the feasibility of such displays, but also has
the ambition to rapidly move towards the development of an industrially
feasible process for volume production. Within the Philips Technology
Incubator an internal venture has been formed with this aim. The venture is
called Polymer Vision (http://www.polymervision.com).
</FONT>
<P align="left"><FONT size="2">Polymer Vision builds on years of groundbreaking research in the field of
organic electronics within Philips Research, which earlier led to world-first
demonstrations of organics-based, functional RFID circuits and active-matrix
displays. One key competence of Polymer Vision is the robust fabrication of
large arrays of polymer based thin-film transistors (TFTs) with largely
identical electrical characteristics. This is combined with the capability to
model and design circuitry that exploits the characteristics of organic
electronics to the fullest.
</FONT>
<P align="left"><FONT size="2">Using these strengths, Polymer Vision has been able to make organics-based
QVGA (320x240 pixels) active matrix displays with a diagonal of 5 inch, a
resolution of 85 dpi and a bending radius of 2 cm. The displays combine a 25
micron thick active-matrix back plane, containing the polymer
electronics-based pixel driving, with a 200 micron front plane of reflective
&#145;electronic ink&#146; developed by E Ink Corporation. Electronic ink-based displays
are thin and flexible by construction because they do not require cell gap
control. Moreover, displays made with electronic ink technology are ideal
candidates for reading-intensive applications because of their excellent,
paper-like readability and extremely low power consumption.
</FONT>
<P align="left"><FONT size="2">The resulting display represents the thinnest, and most flexible,
active-matrix display reported to date. Moreover with close to 80,000 TFTs it
is the largest organic electronics-based display yet, with the smallest pixel
pitch reported to date. A picture of the display is included below.
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">Along with the displays, well-functioning shift registers, an important
building block of display drivers, are published in the February 1 issue of
Nature Materials. These shift registers are the largest functional circuits
based on organic electronics reported to date. And, more importantly, they can
be fabricated using the same process as used for the back plane TFTs,
representing an important step towards the option to realize the complete
display drivers on the same substrate as the display. This leads to more
robust and reliable displays with smaller footprints and less external
connections.
</FONT>
<P align="left"><FONT size="2">Polymer Vision manufactures active-matrix back planes and shift registers
using standard production equipment used in the established AMLCD industry.
This allows the use of a mature knowledge base to quickly move up the learning
curve towards a fully industrialized process. Currently Polymer Vision has the
capability of producing over 5,000 fully functional rollable display samples
per year, and it is in the process of defining a pilot production line.
</FONT>
<P align="left"><FONT size="2">To further speed up the industrialization Polymer Vision seeks cooperation
with technology partners and lead customers
</FONT>
<P align="left"><FONT size="2">World&#146;s thinnest flexible active-matrix display using Philips&#146; ultra-thin back
plane with organics-based thin film transistors, combined with E Ink&#146;s
electronic ink front plane.
</FONT>
<P align="left"><FONT size="2">High-resolution pictures can be downloaded from:
http://www.extra.research.philips.com/pressmedia/pictures/displays_rolldisp.html
</FONT>
<P align="left"><FONT size="2">For more information:
http://www.extra.research.philips.com/pressmedia/pictures/displays_rolldisp.html.
</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">Polymer Vision: www.polymervision.com</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">Nature Materials article: http://dx.doi.org/10.1038/nmat1061</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">Videos on Rollable display:
</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"><B>Long Version </B>(2.26 min.)</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"><B>Short version</B> (1.25 min.)</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">About Royal Philips Electronics
</FONT>
<P align="left"><FONT size="2">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 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, semiconductors,
and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt,
Amsterdam and other stock exchanges. News from Philips is located at
www.philips.com/newscenter.
</FONT>
<P align="left"><FONT size="2">For further information:<BR>
Koen Joosse<BR>
Philips Research<BR>
Tel.:&#043;31 402743703<BR>
Email: koen.joosse@philips.com
</FONT>
<P align="center"><FONT size="2"></FONT>
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<!-- link2 "Philips and IBM Join Forces in the RFID and Smart Card Market Place" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="left"><FONT size="2">Philips and IBM Join Forces in the RFID and Smart Card Market Place
</FONT>

<P align="left"><FONT size="2">Amsterdam, The Netherlands, January&nbsp;26, 2004 &#151; Royal Philips Electronics (AEX:
PHI, NYSE: PHG) and IBM today announced a major initiative to jointly develop
customer systems for radio frequency identification (RFID)&nbsp;and smart card
applications. Working together, Philips and IBM will combine their industry
expertise to address the growing need for advanced high-security smart cards
and RFID technology in day-to-day business processes, operations and consumer
lifestyles.
</FONT>
<P align="left"><FONT size="2">The key end-application areas that the companies plan to address are RFID
solutions for supply chain management, retail and asset management, as well as
smart card solutions for finance, e-government, transportation and event
ticketing. Within the scope of the joint cooperation, IBM Global Services will
also build an RFID system for Philips Semiconductors division manufacturing
and distribution facilities in Taiwan and Hong Kong.
</FONT>
<P align="left"><FONT size="2">&#147;Our relationship with IBM will mean stronger time-to-market, improved
customer confidence levels and the opportunity to leverage each others&#146; brands
and expertise,&#148; said Scott McGregor, president and chief executive officer,
Philips Semiconductors. &#147;It is Philips&#146; mission to continue bringing greater
benefits to both companies and today&#146;s &#145;Connected Consumers&#146; &#150; enabling them
better access to information, entertainment and services. To this end, the
RFID system in East Asia being built by IBM is a good illustration of Philips
adopting the very technology it is driving into the marketplace.&#148;
</FONT>
<P align="left"><FONT size="2">&#147;Philips is the worldwide leader in high security smart card controller ICs
and RFID chip solutions. IBM is committed to this market place and we are
confident that the deployment of our joint solutions will reduce operational
costs, increasing profitability and providing a competitive advantage for our
customers,&#148; said Terry Hopkins, vice president, wireless e-business, IBM
Global Services. &#147;We are committed in helping companies boost levels of
advanced product tracking and inventory control, as well as developing an
end-to-end assessment of the specific costs and benefits in adopting RFID and
smart card technology within their business processes.&#148;
</FONT>
<P align="left"><FONT size="2">The first joint project between the two companies is the development and
implementation of an RFID solution within Philips&#146; Semiconductors division to
improve the business processes within the manufacturing and distribution
supply chain, inventory management and control as well as to enhance customer
satisfaction. In a first step, wafer cases and carton packages will be tagged
at Philips Semiconductors Kao Hsiung manufacturing site in Taiwan and the
division&#146;s distribution centre in Hong Kong. The project started in November
and will be fully live during the course of 2004.
</FONT>
<P align="left"><FONT size="2">The supply chain management, retail and logistics markets are constantly
looking for ways to enhance the profitability of their operations, reduce
costs through higher degrees of automation and improve response times in
inventory management. These customers today recognize that the RFID
marketplace is made up of small players, and therefore are seeking out
committed blue chip organizations that have a reputation for delivering
reliable and tested solutions.
</FONT>
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<P align="left"><FONT size="2">As Philips extends its RFID business from early adopters to the mass market,
its business is rapidly moving towards large-scale projects that require
global reach, an expertise in project management and system solutions. By
teaming up with IBM, Philips will move beyond delivering its expertise and
RFID chip offering, and move towards integrated end-to-end solutions for major
retailers, consumer goods manufacturers and couriers.
</FONT>
<P align="left"><FONT size="2">Both companies bring unique perspectives and technology strengths to the
alliance for the benefit of both smart card and RFID market places. Philips
provides industry leading high-security contact and contactless chip
technology for smart cards, using the most advanced manufacturing processes.
As the global leader in chip solutions for the RFID industry, Philips is
focused on delivering cost-effective products meeting global standard
specifications, such as electronic product code (EPC).
</FONT>
<P align="left"><FONT size="2">Through IBM Global Service&#146;s offerings, which comprise consulting, project
management, and implementation services as well as specialized software,
companies will now have a phased and easy to integrate approach to smart card
and RFID implementation. By leveraging IBM&#146;s market leadership with Philips
technology strengths, both companies will gain greater scope, interaction and
feedback from current and potential end customers.
</FONT>
<P align="left"><FONT size="2">About IBM
</FONT>
<P align="left"><FONT size="2">IBM&#146;s RFID consulting and implementation practices are part of IBM Global
Services, the world&#146;s largest information technology services provider. With
professionals serving customers in 160 countries IBM Global Services annual
revenue was more than $42&nbsp;billion in 2003, or nearly 48&nbsp;percent of IBM&#146;s total
annual revenue. IBM Global Services offers a broad range of capabilities &#151;
consulting, IT services, hardware, software, research and financing &#151; to help
companies of all sizes realize the full value of information technology. For
more information, visit: www.ibm.com/services.
</FONT>
<P align="left"><FONT size="2">About Royal Philips Electronics
</FONT>
<P align="left"><FONT size="2">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 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, semiconductors,
and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt,
Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.
</FONT>
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<P align="left"><FONT size="2">For further information:<BR>
Marijke Sas<BR>
Communications manager<BR>
Philips Semiconductors<BR>
Tel.:&#043;31 40 272 2091<BR>
Email: marijke.sas@philips.com
</FONT>
<P align="left"><FONT size="2">Marijke. Sas<BR>
Philips Semiconductors (Europe)<BR>
Tel.:&#043;31 40 272 2091<BR>
Email: marijke.sas@philips.com
</FONT>
<P align="left"><FONT size="2">Robyn Kao<BR>
Philips Semiconductors (Asia Pacific)<BR>
Tel.:&#043;886 2 2382 4025<BR>
Email:robyn.kao@philips.com
</FONT>
<P align="left"><FONT size="2">Sajin Varghese<BR>
Philips Corporate Communications<BR>
Tel.:&#043;31 20 5977425<BR>
Email: sajin.varghese@philips.com
</FONT>
<P align="left"><FONT size="2">Evelien Vredeveld<BR>
IBM (Europe)<BR>
Tel.:&#043;31-20-513-5736<BR>
Email: evelien_vredeveld@nl.ibm.com
</FONT>
<P align="left"><FONT size="2">Jan Walbridge<BR>
IBM (USA)<BR>
Tel.:&#043;1 914-766-4647<BR>
Email: walbridge@us.ibm.com
</FONT>
<P align="left"><FONT size="2">Naeema Ismail<BR>
IBM (Asia Pacific)<BR>
Tel.:&#043;65-6418-2170<BR>
Email: naeemai@ibm.com
</FONT>
<P align="center"><FONT size="2"></FONT>
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<!-- link2 "Philips and Neusoft to Form&nbsp;Medical Systems Joint Venture in China" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="left"><FONT size="2">Philips and Neusoft to Form&nbsp;Medical Systems Joint Venture in China
</FONT>

<P align="left"><FONT size="2">MOU to Establish a Manufacturing and R&#038;D Joint Venture to Target Chinese and
International Markets for Medical Systems
</FONT>
<P align="left"><FONT size="2">Shenyang, China/Amsterdam, The Netherlands, February&nbsp;9, 2004 &#150; Neusoft Group
Ltd. (&#147;Neusoft&#148;) of China and Royal Philips Electronics (AEX: PHI, NYSE: PHG)
(&#147;Philips&#148;) of the Netherlands today announced the signing of a memorandum of
understanding to set up a manufacturing and R&#038;D joint venture for medical
systems. The joint venture, to be called Philips&#150;Neusoft Medical Systems Co.
Ltd., will focus on developing and manufacturing medical imaging systems for
the Chinese and international markets. The joint venture expects to expand its
revenue by approximately 30&nbsp;percent annually over the next five years.
Financial details of this transaction will not be disclosed.
</FONT>
<P align="left"><FONT size="2"><I>Philips&#150;Neusoft Medical Systems Co.</I> Ltd. will be headquartered in Shenyang, in
northeastern China, with Philips holding 51&nbsp;percent and Neusoft Digital
Medical Company &#150; a subsidiary of Neusoft Group Ltd. &#150; 49&nbsp;percent of the share
capital. Philips will have four seats and Neusoft three seats on the joint
venture&#146;s board of management, with Neusoft appointing the chairman of the
board.
</FONT>
<P align="left"><FONT size="2">Once approval for the joint venture is granted by the Chinese government,
Philips&#150;Neusoft Medical Systems Co. Ltd. will begin developing and
manufacturing computed tomography (CT)&nbsp;and x-ray equipment. This will be
followed by ultrasound and magnetic resonance imaging (MRI)&nbsp;equipment, as well
as picture archiving and communication systems (PACS) &#150; products that are used
to store radiology images. Both parties will retain their own brands, sales
forces and service networks. The R&#038;D and manufacturing joint venture
represents a breakthrough for Philips&#146; medical activities in China, since it
is Philips&#146; first investment in the country through which R&#038;D and
manufacturing of a broad portfolio of medical equipment can be carried out.
</FONT>
<P align="left"><FONT size="2">&#147;Through this joint venture, we not only can quickly expand our presence in
the large Chinese medical systems market,&#148; explained Jan Hommen, Vice Chairman
and CFO of Philips, &#147;but by teaming up with Neusoft, Philips can extend its
portfolio to include more economy to mid-range products and benefit from
Neusoft&#146;s extensive ties to the Chinese research and hospital community.&#148;
</FONT>
<P align="left"><FONT size="2">In commenting on this announcement Dr.&nbsp;Liu, Chairman and CEO of Neusoft Group
Ltd., said: &#147;Neusoft has an established track record in medical R&#038;D in China,
so we feel this joint venture is a good strategic fit for us. Both companies
bring with them an understanding of different aspects of the medical systems
business. So by working together, we can build on each other&#146;s expertise to
serve the Chinese and international markets.&#148;
</FONT>
<P align="left"><FONT size="2">Both Philips and Neusoft recognize the potential for growing their medical
business in China. The Chinese medical market, currently valued at USD 1.2
billion, is the world&#146;s third largest, and is growing at approximately 10
percent per year. Furthermore, it is expected to overtake Japan in the next
six to eight years, fueled in part by a strong demand for economy- to
mid-range products. This segment of the market is growing in China at
approximately 15&nbsp;percent per year. The joint venture will also target
international markets, such as developing markets in Asia, South America and
Eastern Europe, where there is high demand for economy- to mid-range products.
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">About Neusoft Group Ltd.
</FONT>
<P align="left"><FONT size="2">Neusoft is one of the leading software and solution companies in China, it
originated from Northeastern University in 1991. It owns the first listed
software company in China, Neusoft Co., Ltd. Neusoft focuses on developing
three main businesses, namely software and services (E-Solution), education
and training (E&#038;T Solution), and digital medical products (E-Hospital
Solution). With 5800 employees and total assets of RMB3.8&nbsp;billion, it has 7
research centers, 3 training centers as well as sales and services office in
40 cities nationwide. Neusoft had sales in 2002 of RMB2.06&nbsp;billion. For more
information, please visit at www.http://www.neusoft.com.
</FONT>
<P align="left"><FONT size="2">About Royal Philips Electronics
</FONT>
<P align="left"><FONT size="2">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 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, semiconductors,
and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt,
Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter
</FONT>
<P align="left"><FONT size="2">Safe Harbor Statement
</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. 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.
</FONT>
<P align="left"><FONT size="2">For further information:<BR>
Heidi Wilson<BR>
Philips Medical Systems<BR>
Tel.:&#043;1 978 659 7302<BR>
Email: heidi.wilson@philips.com
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">Jayson Otke<BR>
Philips Corporate Communications<BR>
Tel.:&#043;31 20 5977215<BR>
Email: jayson.otke@philips.com
</FONT>
<P align="left"><FONT size="2">Denise Sun<BR>
Corporate Communications<BR>
Tel.:&#043;86-21-63541088-5636<BR>
Email: denise.cs.sun@philips.com
</FONT>
<P align="left"><FONT size="2">Hou Ning<BR>
Neusoft Branding &#038; Culture Center<BR>
Tel.:&#043;86-24-8366-5661<BR>
Email: houn@neusoft.com
</FONT>
<P align="left"><FONT size="2">Yang Jiping<BR>
Neusoft Branding &#038; Culture Center<BR>
Tel.:&#043;86-24-8366-5662<BR>
Email: yangjp@neusoft.com
</FONT>
<P align="left"><FONT size="2">Richard Zhao<BR>
Philips Medical Systems<BR>
Tel.:&#043;86-10-65172288-3225<BR>
Email: richard.y.shao@philips.com
</FONT>
<P align="center"><FONT size="2"></FONT>
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<P align="left"><FONT size="2">February&nbsp;10, 2004
</FONT>
<!-- link2 "Report on the Performance of the Philips Group" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="left"><FONT size="2">Report on the Performance of the Philips Group
</FONT>

<P align="left"><FONT size="2">Philips reports full year net income of EUR 695&nbsp;million.
Fourth quarter net income of EUR 598&nbsp;million
&#150; all amounts in millions of euros unless otherwise stated
&#150; the data included in this report are unaudited
&#150; financial reporting according to US GAAP
</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">Nominal sales growth of 1% in Q4 &#151; comparable sales up 10% driven
by Semiconductors, Consumer Electronics and Medical Systems</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">Semiconductors profitable in Q4: income from operations EUR 166
million</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">Unconsolidated companies contributed EUR 183&nbsp;million to net
income in Q4</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">Cost reduction programs surpassed target of EUR 1&nbsp;billion savings</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">Strong cash flow from operations of EUR 1,673&nbsp;million in Q4</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">Net debt : group equity ratio 18 : 82</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">The fourth quarter 2003
</FONT>
<P align="left"><FONT size="2">Philips recorded a net income of EUR 598&nbsp;million (a profit of EUR 0.46 per
share) versus a loss of EUR 1,530&nbsp;million (a loss of EUR 1.20 per share) in
the same period last year.
</FONT>
<P align="left"><FONT size="2">Nominal sales increased by 1% over the same period last year, being impacted
by the weakening of the US dollar and related currencies (8%) and various
divestments that were carried out in 2002 (1%). Comparable sales increased by
10%, predominantly driven by stronger sales at Semiconductors, Consumer
Electronics and Medical Systems.
</FONT>
<P align="left"><FONT size="2">Income from operations was a profit of EUR 608&nbsp;million, an improvement
compared to Q4 2002 of EUR 561&nbsp;million, despite higher pension cost of EUR 66
million. Focus on cost control and operational efficiencies, coupled with
increased sales and the benefits of earlier restructuring programs, resulted
in improved profit margins in almost all divisions. Income from operations
included a non-cash impairment charge of EUR 139&nbsp;million relating to the MedQuist business at Medical Systems.
</FONT>
<P align="left"><FONT size="2">Over the last two years overhead cost reductions achieved savings of EUR 425
million to date and Medical Systems delivered savings of EUR 342&nbsp;million.
Including savings in R&#038;D and other projects, the overall cost reduction
program surpassed the target of EUR 1&nbsp;billion savings by the end of 2003.
</FONT>
<P align="left"><FONT size="2">Cash flow from operating activities in Q4 was an inflow of EUR 1,673&nbsp;million.
Inventories as a percentage of sales were 11.0% compared to 11.1% last year,
and were at another record low for the fourth quarter. During the quarter, the
net debt position decreased by EUR 2.4&nbsp;billion to EUR 2.8&nbsp;billion, due to a
strong cash flow from operations and the sale of securities.
</FONT>
<P align="left"><FONT size="2">Click the link below to follow the press conference. The webcast will be live
at 09:15 &#091;CET&#093;, February&nbsp;10 2004 and available as a recording from 11:00,
February&nbsp;10, 2004 onwards.
</FONT>
<P align="center"><FONT size="2"></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">Safe Harbor Statement
</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.
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.
</FONT>
<P align="left"><FONT size="2">About Royal Philips Electronics
</FONT>
<P align="left"><FONT size="2">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 166,500 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, semiconductors,
and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt,
Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.
</FONT>
<P align="left"><FONT size="2">For further information:<BR>
Gerd G&#246;tz<BR>
Head of Media Relations<BR>
Royal Philips Electronics<BR>
Tel.:&#043;31205977213<BR>
Email: gerd.goetz@philips.com
</FONT>

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




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