Philips reports strong sales of EUR 6.5 billion, up 6% year-on-year; EBITA rises to EUR 413 million

• Strong comparable sales growth of 6%, fueled by 16% growth in emerging markets
• EBITA increased to EUR 413 million from EUR 386 million in Q2 2007, mainly driven by higher earnings at Lighting
• Strong contribution to results from recent acquisitions, both in Home Healthcare Solutions and in Professional Luminaires
• Consumer Lifestyle performed well in a weaker environment; plans to improve the Television business remain well on track
• Net income of EUR 720 million includes a gain of EUR 780 million on the sale of TSMC shares and an impairment charge of EUR 299 million for NXP. Net income for Q2 2007 included a EUR 1.2 billion gain in respect of TSMC

Gerard Kleisterlee, President and CEO of Royal Philips Electronics:

“Our second quarter results are a reflection of both the quality and the resilience of our overall business portfolio in a rapidly deteriorating macro-economic environment. Revenue growth was excellent, with currency-corrected nominal growth of 14% and comparable growth of 6%, well ahead of both last year as well as the previous quarter. Also profitability developed positively, as increased contribution from the business, including the latest acquisitions, more than offset the impact of incidental results. We also continued to successfully expand our strong position in high-growth emerging markets.

Our Healthcare sector posted strong results in Home Healthcare Solutions, Patient Monitoring and Clinical Care Systems. Imaging Systems posted lower results but continued to increase its order book backlog, with a better product mix, which gives us confidence for the full year. In a much-weakened consumer environment our Consumer Lifestyle business continued to perform well, and the implementation of our Television strategy of rightsizing and selective growth is ahead of plan. Also, Lighting continued to deliver, helped by their balanced exposure to different end markets, both from an application and a geographic perspective.

The execution of our plans kept us well on track with regard to the implementation of our Vision 2010 strategy and ambition.”

For further information, please contact

Joon Knapen, Philips Corporate Communications, +31 20 59 77 477, joon.knapen@philips.com

Arent Jan Hesselink, Philips Corporate Communications, +31 20 59 77 415, arentjan.hesselink@philips.com