Philips Announces CloseView Mobile Display Technology at SID 2005; New ''Windowless'' Technology Significantly Reduces Display and Handset Thickness, and Improves Front-of-Screen Performance

BOSTON--(BUSINESS WIRE)--May 23, 2005--Royal Philips Electronics (NYSE:PHG) (AEX:PHI) today announced CloseView(TM) mobile display technology that enables handset makers to significantly reduce the size and thickness of mobile phones and improve the front-of-screen performance. For consumers, CloseView technology results in crisper images and sleeker mobile devices. The announcement was made at the Society for Information Display (SID) 2005 International Symposium, Seminar and Exhibition.

The CloseView "windowless" design allows handset makers to reduce both the size and thickness of their mobile phones by eliminating the need for glass covers that are traditionally used with handset displays. The innovation contains an enhanced front polarizer that integrates scratch and chemical resistance. The design also improves front-of-screen performance by reducing optical distortion, brightening images and enhancing deep black appearances. The CloseView design concept incorporates a shock absorbing functionality to protect the display module against impact, thus increasing robustness.

"Handset functionality has evolved from voice-only communications to interactive multimedia within a remarkably short period of time," said Harold Hoskens, chief executive officer of Philips Mobile Display Systems. "Consequently, consumers are demanding increased display size and screen performance to accommodate multimedia applications such as TV on mobile. Our CloseView technology means that handset makers can meet this demand with equal form factor."

Windowless technology is already commonly applied to LCD monitors, but Philips -- a leading provider of mobile display technology -- is now the first company to make it available with increased robustness properties for mobile devices such as phones, handheld gaming devices, and personal audio and video players. The technology provides manufacturers of these products with more freedom to differentiate their designs.

Philips plans to make CloseView technology available to handset makers worldwide in 2006.

CloseView is just one of the many easy-to-use display solutions designed for the Connected Consumer that Philips is showcasing at booth #2009 at SID 2005. Philips' keynote address, exhibits, demonstrations and announcements at the event highlight the company's capabilities in the areas of display viewing performance, brightness and contrast, and mechanical integrity.

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 $37.66 billion (EUR 30.3 billion) in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 160,900 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 http://www.newscenter.philips.com.

CloseView is a trademark of Koninklijke Philips Electronics N.V.