Philips Announces 4x DVD+R/+RW Data Drive Shipments to HP

DVD+R/+RW from Philips to be featured in HP
Consumer Desktop PCs

Amsterdam, The Netherlands, June 25, 2003 '“ Royal
Philips Electronics (AEX:PHI; NYSE:PHG) today announced that it has started
shipments of its new DVD+R/+RW data drive to HP. The shipments are the first
part of a large order of 4x/2.4x DVD+R/+RW 16x/10x CD-R/RW data drives to be
delivered this year.

HP has chosen the DVD+R/+RW format as the exclusive
DVD writer format option for all its products. 'Some manufacturers have sensibly
added the DVD+R/+RW format to their multiformat drives, but still have the
unnecessary burden of another DVD writer format in their product," notes Leo van
Leeuwen, CEO of Philips Optical Storage. 'With the superior DVD+R/+RW format
emerging as the de facto standard for DVD writing, industry leaders such as HP
and Philips are confident that other formats are already redundant."


'DVD+R/+RW offers an outstanding user experience and excellent
performance in both PC storage and consumer video recording," said John Romano,
senior vice president of HP's Consumer PC Global Business Unit. 'Philips, with
its long-standing optical storage know-how, designed its drive for the DVD+R/+RW
format only, resulting in a data drive with optimal performance that's easy to
use and fulfils our customers' needs for managing and storing their digital
content."

HP announced earlier this year its plans to include DVD+R/+RW
data drives as the standard format for rewritable DVD drives available in its
consumer desktop PC lines. 'We are delighted that we can support our DVD+RW
Alliance partner, HP, in fulfilling its plans to bring simple DVD creation to
every PC user in the home and the office," says van Leeuwen. 'And simple
recording of camcorder tapes or TV programs on DVDs for all consumers is exactly
what Philips wants to achieve."

Plus is all you need
The DVD+R/+RW
format offers a wide variety of writing and editing features that make it the
most functional and easy-to-use DVD recording format on the market. DVD+R/+RW
writeable drives quadrupled their worldwide market share in 2002 (Source: Santa
Clara Consulting Group). With the strong support of the world's two largest PC
manufacturers (HP and Dell), the DVD+R/+RW market momentum in factory-installed
and after market drives is rapidly growing. DVD+R/+RW recorders are the most
popular choice in every region in the world where they are available.


About Royal Philips Electronics
Royal Philips Electronics of the
Netherlands is one of the world's biggest electronics companies and Europe's
largest, with sales of EUR 31.8 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, 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 www.philips.com/newscenter

Source: Philips

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