Philips highlights expanding role of healthcare business at world’s largest medical meeting in Chicago

Vision of the next step in patient-centered care demonstrated at Ambient Experience Pavilion

Chicago, United States of America, December 1, 2003 - Royal Philips Electronics (AEX: PHI; NYSE: PHG) ("Philips") is showcasing the expanding role of its Medical Systems business at this year's Annual Meeting of the Radiological Society of North America (RSNA). As the Annual Meeting is getting underway, Philips is positioning itself to address the major trends that continue to shape the healthcare industry: rising costs, growing consumerism, and an aging population in Western markets. Philips is leveraging its combined expertise in an effort to:

• Accelerate expansion beyond its core imaging business into customer services and healthcare IT solutions,
• Build on the strengths of "One Philips" by drawing on the company's consumer insights in white and brown goods as well as on its design expertise, and
• Further its strategy to work with industry partners to advance new technologies and markets, such as personal healthcare and molecular medicine.

With the focus at RSNA on diagnostic imaging equipment, such as the first 40-slice computed tomography (CT) scanner, Mr. Karvinen reiterated that the company has completed integrating its recent acquisitions made in the diagnostic imaging market. Having invested over $5 billion in the past four years, Philips has solidified its position as a stronger leader in imaging systems like X-ray, CT and magnetic resonance (MR). Mr. Karvinen also discussed how Philips' expanding healthcare IT offerings and customer services will further help healthcare facilities use resources more effectively to provide top-notch care. "We know from studies that radiologists can spend up to one third of their day looking for film, and in the United States up to one quarter of medical images are misplaced or lost," he commented. Clinical IT solutions, like those being developed by Philips in conjunction with Epic Systems, not only collect and organize patient data, but also make it accessible throughout the hospital and the healthcare enterprise. "These solutions help customers get the most out of their imaging equipment by making sure the right information gets to the right place at the right time," Karvinen said.

Capitalizing on "One Philips" - The Ambient Experience Pavilion
Consumerism will increasingly shape the healthcare industry, more and more websites will rank hospitals and healthcare providers, patients will shop around for the best care, and healthcare providers will continue to compete by building premier healthcare facilities for their customers. "I believe this trend provides Philips with a real advantage thanks to our expertise in domestic appliances, consumer electronics and lighting," Mr. Karvinen explained.

At RSNA, Philips is showcasing this thinking at the "Ambient Experience Pavilion" where visitors can experience what a radiology suite could soon look like. The pavilion integrates products from across Philips' businesses and demonstrates the company's vision of Ambient Intelligence: "Technology disappears into the fabric of our surroundings from where it works to improve the quality of our lives," explained Stefano Marzano, CEO and Chief Creative Director of Philips Design. "The aim is to create a patient-centered environment that is more comfortable and ultimately more personal," he continued.

The RSNA provides an opportunity to discuss emerging developments in the healthcare market such as personal healthcare. "Philips is the leading player in patient monitoring, with a 30 percent market share. We also have extensive experience in building communications platforms such as for consumer electronics equipment," Mr. Karvinen said. Philips is working on combining its expertise in these two areas to enable patients to monitor their own vital signs and play a more active part in staying healthy, which is important as a generation of baby-boomers ages.

Mr. Karvinen has also cited molecular medicine as the next frontier in medical imaging. Molecular imaging brings imaging to the level of the individual cell, giving physicians the potential to detect and characterize diseases like cancer or heart disease earlier, helping make treatment more effective. Here, Philips is working closely with its customers and research institutes to develop the technologies and imaging agents for a market that is expected to take off in the next four to five years.

For further information please contact:
Jayson Otke
Philips Corporate Communications
Tel: +31 20 59 77 215
jayson.otke@philips.com

Heidi Wilson
Philips Medical Systems
Tel: +1 978 659 7302
heidi.wilson@philips.com