Press Information
December 15, 2005
PHILIPS TO PLACE ITS SEMICONDUCTOR BUSINESS IN A SEPARATE
LEGAL STRUCTURE
Amsterdam, The Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) today
announced it will start the process to create a separate legal structure for its Semiconductors
business, giving Philips flexibility to pursue strategic options for further strengthening the
longer-term performance of these activities.
In early 2005 Philips introduced a Business Renewal program to improve the Semiconductor
division’s competitiveness and bring profitability through the cycle to between 5 and 15%, as
well as to increase market share in the Semiconductors division’s four core businesses of
Mobile & Personal, Home, Automotive & identification, and Multi Market Semiconductors.
“While we are pleased with the progress of the Business Renewal Program, we see
opportunities to further strengthen the activities and maximize shareholder value, with the step
we announced today, in an industry where scale matters,” Gerard Kleisterlee, President and
CEO of Royal Philips Electronics, stated.
“This move will lead to increased flexibility for our Semiconductor business to invest, grow and
build scale in the competitive semiconductor market, while continuing to leverage the strengths
of Philips overall. This is good news for our customers and employees, ” said Frans van
Houten, CEO of Philips Semiconductors.
For more information on this announcement, please visit www.newscenter.philips.com.
You can also visit http://www.webcast.philips.com/15122005 to access a webcast, which
begins at 10:00 AM (CET) today, December 15, covering the announcement.
For further information, please contact:
Philips Corporate Communications
Jayson Otke
Tel.: +31 20 59 77 215
E-mail: jayson.otke@philips.com
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world’s
biggest electronics companies and Europe’s largest, with sales of EUR 30.3 billion in 2004.
With activities in the three interlocking domains of healthcare, lifestyle and technology and
161,100 employees in more than 60 countries, it has market leadership positions in medical
diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and
silicon system solutions. News from Philips is located at www.philips.com/newscenter.
Forward-looking statements
This release may contain 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
2005-12-15 no. 52
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and uncertainty because they relate to events and depend on circumstances that will occur in
the future and there are many factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking statements.
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