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Philips Handset Launches Powered by Cellon


-- Philips' Fisio 825 and Fisio 625 Models, Designed and Developed by World's Largest Independent Design House, Launched in Markets Worldwide

SANTA CLARA, Calif., Dec 23, 2002 - Royal Philips Electronics (NYSE: PHG, AEX: PHI) has launched its new fisio 825 and 625 model handsets to selected world markets, highlighting the contribution of Cellon International, the world's largest independent design house for wireless handsets and modules. The fisio 825 and 625 models, which feature some of the most advanced technology in the handset market today, were developed and designed by Cellon within the scope of the company's partnership with Philips' Business Unit Wireless, a division of the Dutch electronics giant.

The fisio 825 -- Philips' top-of-the-line handset -- features the latest technology for demanding users, including integrated BluetoothTM wireless communication for data transfer and wireless headsets and an extra-large 4096-colour 'Contrast Plus' display that can show up to 9 lines of text with a 112 x 112 pixel resolution. Both the fisio 825 and 625 share a full range of advanced features, including:

-- advanced voice features, including call recording

-- high speed GPRS Class 10 (4+2) connectivity, today's fastest technology for mobile Internet access

-- the new FotoCall feature, which downloads pictures from a PC and shows the user who is calling

-- new and fun-to-use entertainment and communication features, including Enhanced Messaging Service talk (EMS) rel. 4(C) and the Infusio ExEn(R) V2 games engine, which enables multi-user gaming

-- PC and PDA synchronization for e-mail, calendar, contacts, etc.

-- talk time of up 5.5 hours and more than 2 weeks of standby time

The phones were launched by Philips into selected EMEA markets, and represent the fourth and fifth Philips handsets that are powered by Cellon technology. In addition to design and development, Cellon provided testing and approval via its facilities in France, ensuring a market-ready solution and speeding product cycles. Cellon France, located in Le Mans, is a certified FTA testing and approval facility and a full member of the Global Certification Forum (GCF).

"Our partnership with Phillips represents a case study for the value that companies can capture through outsourcing of design and development," said Jason Sun, President and CEO of Cellon International. "The advanced features of Philips' fisio handsets clearly demonstrates that an independent design house like Cellon can be trusted to deliver not only cost savings and faster time-to-market, but also leading-edge technology."

About Cellon

Cellon International is the world's largest independent wireless design and development house, providing total solutions for wireless terminals and related technology. The Company provides complete module, platform and terminal-ready production solutions for OEMs and private label distributors worldwide. Cellon is in advanced development of 2.5G and 3G products, and has built strategic relationships with leading technology players and third-party software developers. Cellon has more than 500 professional staff worldwide, and established design and development centers in the United States, Canada, China, Korea and France. Over 7 million phones that are in use today are powered by Cellon technology.

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 32.3 billion in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 184,000 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 www.philips.com/newscenter



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