Philips Electronics Announces Relocation of North American Headquarters to Massachusetts

-- Massachusetts Governor Deval Patrick on-hand for opening

-- Move reinforces Philips' plan for long term growth in region
ANDOVER, Mass.--(Business Wire)--
Senior Management from Philips Electronics North America, a unit
of Royal Philips Electronics, together with Massachusetts Governor
Deval Patrick, today announced that Andover, Mass., will serve as the
company's new North American Headquarters. As a result of this move,
Massachusetts now has the largest Philips presence in North America,
with nearly 5,000 employees, six major worksites and significant
manufacturing facilities.

Philips estimates that its presence will inject more than $266
million dollars in payroll into the Massachusetts economy annually,
when taking into account the various Philips facilities including
executive and administrative offices, innovation centers, R&D,
warehousing and manufacturing.

"There are many compelling reasons for choosing Massachusetts as
the place to relocate our regional headquarters," said Scott
Weisenhoff, Chief Executive Officer for Philips Electronics North
America. "Massachusetts is the global headquarters for our healthcare
business, and our Solid State Lighting business, which drives our
leadership in energy efficient lighting solutions. These are important
growth engines for our company, making it imperative that our
corporate office work closely with these business units to ensure
growth. As Philips grows, so too will our investment in Massachusetts
and North America."

"I am delighted to welcome Philips Electronics to Massachusetts,"
said Governor Deval Patrick. "Company investments like these speak to
the unique benefits the Commonwealth offers employers: a highly
educated and trained workforce, world-class research and educational
institutions, and a state government committed to creating a business
climate where companies and their employees can prosper."

During the last twelve months alone, Philips has grown from
approximately 20,000 to more than 30,000 employees in the U.S., with
offices and operations at 50 major facilities in 22 states. Sales for
North America are now greater than $12 billion annually, making it the
biggest single market for Philips globally. Last week, the company
reported second quarter sales had increased to $10.3 billion globally,
up seven percent compared to the same period in 2007. Sales for North
America were $3.24 billion, an increase of 23 percent compared to the
second quarter of 2007, and representing more than 30 percent of
Philips' global sales.

"Massachusetts can be proud that many of the technologies we are
creating and manufacturing as we strive to become the world's leading
health and well-being brand -- including LED Lighting, home healthcare
solutions and other life saving healthcare equipment, are being
developed every day in this state, and sent around the world,"
Weisenhoff added. "I have no doubt that the innovations being
developed by Philips in Massachusetts are going to help improve the
world."

At today's announcement, the Governor saw these technologies
first-hand with a tour of Philips' healthcare business, including the
assembly room for state-of-the-art patient monitors that bring
critical data, vital signs and digital imaging directly to the
patients bedside, greatly assisting medical staff and helping to
improve patient care.

To commemorate the relocation, as well as the company's 75th
anniversary operating in the United States, Philips representatives
provided a HeartStart defibrillator to the community, 25 free
subscriptions to its Lifeline medial alert system for indigent elderly
in the Framingham community, and the eW Profile Powercore -
under-shelf display light, a proof point that demonstrates new LED
lighting sources that use 40 percent less energy than efficient
fluorescent lighting for residential and commercial spaces.

Philips Electronics North America was previously headquartered in
New York City.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI)
is a diversified Health and Well-being company, focused on improving
people's lives through timely innovations. As a world leader in
healthcare, lifestyle and lighting, Philips integrates technologies
and design into people-centric solutions, based on fundamental
customer insights and the brand promise of "sense and simplicity".
Headquartered in the Netherlands, Philips employs approximately
133,000 employees in more than 60 countries worldwide. With sales of
US$42 billion (EUR 27 billion) in 2007, the company is a market leader
in cardiac care, acute care and home healthcare, energy efficient
lighting solutions and new lighting applications, as well as lifestyle
products for personal well-being and pleasure with strong leadership
positions in flat TV, male shaving and grooming, portable
entertainment and oral healthcare. News from Philips is located at
www.philips.com/newscenter.

Copyright (C) 2008 Philips Electronics North America, Inc. All
rights reserved.

Philips Electronics North America
David Wolf, 212-536-0817
Mob: 917-455-7857
david.l.wolf@philips.com

Copyright Business Wire 2008