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Four Innovation Award Winners Named Best Innovation For CES 2003

Philips received more awards than any other manufacturer at this year's show and set a record for the company.

Four of Philips' products, including its 44-inch Liquid Crystal On Silicon (LCOS) Television, psa 128 MP3 player, iPronto TSi6400 and its multi-changer SACD/DVD Home Entertainment System MX5900SA, were recognized as 2003 CES Innovations Best of Innovations for the show. A panel of prominent industry designers, engineers and journalists, determined the 2003 CES Innovation Awards. The products were judged on the following criteria: user value, aesthetics, contributions to the quality of life, as well as innovative qualities.

"Being recognized with nineteen innovation awards strongly supports our premium brand position and is a tremendous way to start the new year. These awards show our commitment to developing sophisticated, innovative technologies, in a variety of product categories for the North American market," said Larry Blanford, chief executive officer/president, Philips Consumer Electronics, North America. "With more than 10,000 inventions and 60,000 patents to Philips credit, we pride ourselves on designing products and features that fulfill the consumers' needs in the marketplace as well as their lifestyles."

Philips 2003 Innovation Awards include:

Video Category

    --  Philips DVD760AT - DVD-Video Player with Photo Interactivity
    --  Philips DVD963SA - Progressive Scan DVD and Super Audio CD
        Player
    --  Philips LX9000R - DVD+RW Home Entertainment System
    --  Philips 44-inch LCOS - Slim HD monitor with Pixel Plus
       (Best of Innovation)
    --  Philips 23-inch LCD - Thin, space saving FlatTV

    Personal Electronics Category

    --  Philips AJ3136 - Lifestyle Clock Radio
    --  Philips psa 128 max - Nike Portable Sport Audio by Philips -
        MP3 Player
        (Best of Innovation)
    --  Philips eXp521 - MP3 & WMA CD Player
    --  Philips KEY007 - Portable Digital Camera Key Ring
    --  Philips KEY006 - Portable Audio Key Ring
    --  Philips SA220 - RUSH Digital Audio Player
    --  Philips psa cd8 - Nike Portable Sport Audio by Philips - 8cm
        MP3-CD player

    Audio Category

    --  Philips MX5900SA - 5 SACD/DVD Home Entertainment System
        (Best of Innovation)
    --  Philips MC-i250 - Streamium Wireless Broadband Internet Audio
        System
    --  Philips Emotive Systems (MZ1000, MZ1100, MZ1200) - Lifestyle
        Micro CD System
    --  Philips AZ2555 - wOOx CD Soundmachine
    --  Philips AX7201 - Super Slim Portable CD Player

    Accessories Category

    --  Philips TSi6400 - Intelligent Home Theater Control System
        (Best of Innovation)
    --  Philips TSU3000 - Intelligent Remote Control

Philips CES 2003 Best Of Innovation Award Winners

Philips 44-inch LCOS TV

Philips new 44-inch LCOS televisions elevate picture quality to the next level providing unsurpassed natural colors and picture sharpness in a short-depth, low-weight design. Featuring a warm silver finish, the new LCOS televisions include a matching base that can easily hold additional audio and video components.

With outstanding high definition resolution (1280 x 720 pixels), the new LCOS televisions include Philips Digital Natural Motion(TM) and Digital Crystal Clear(TM) technology for enhanced viewing. Digital Natural Motion is a unique and highly advanced processor calculating motion trajectories of moving picture elements, correcting jerky movement in both studio programs and movies. Digital Crystal Clear technology utilizes Dynamic Contrast(TM), SVM, digital comb filter, 9-bit processing, luminance enhancements and color enhancements to create a crisp and natural picture from any type, or quality of source.

Philips psa 128 max

Developed by Nike and Philips, worldwide leaders in sport and technology, the psa 128 max is an innovative portable MP3 player designed specifically for sports, such as running and riding.

The MP3 portable audio player is designed for movement, an evolution in the spirit of freedom of movement and performance. Designed to be operated intuitively by touch and feel, the psa 128 includes an armband and headphones specifically designed for uninhibited movement. The player is small and lightweight, featuring a stainless steel, sleek, stylish design. The control buttons are made of rubber, making them easy to grip while keeping sweat and moisture out. Consumers also have the option to use the remote control to operate the products remotely. The new MP3 player can playback between one to two hours of near CD quality music and feature a battery life of more than nine hours.

For ease of use and installation, the player includes MUSICMATCH's 7.0 audio manager software providing quick transfer of music to the audio players. Additionally, downloading hours of music is easily transferred through USB connectivity.

Philips MX5900SA

Ergonomically designed, the MX5900SA is a 5 DVD/SACD performance-oriented Home Entertainment System bestowed with superior technological features to provide the ultimate movie and music experience - right at home.

With Multi-Channel Super Audio CD (SACD), the listener is immersed in superior sound quality with unmatched high fidelity and remarkable realism. To further enhance this audio experience, ultra slim ribbon tweeter speakers add to already crystal clear, omni-directional sound to truly expand and fill the soundstage in the room.

The MX5900SA also features sleek and acoustically designed Twin Subs, an innovative loudspeaker concept consisting of duo bass pipes integrated in the slim speaker columns which greatly increases the depth and timing of bass performance.

Add to this, Cinema Center Speaker with 5 multi-directional speaker drivers; 4 full-range 3-way satellite speakers; Dolby Digital 5.1, Dolby Pro-Logic and DTS decoder for powerful sound; Clear Voice(TM) dialogue enhancement; DCDi Faroudja Progressive Scan for sharper pictures; plus the ingenious Seating Control to let users pick their sweet spot. These awesome features will definitely turn any home into a cinema - or concert hall.

Powered by a whopping 500W RMS total power output, the MX5900SA supports all major formats like SACD, DVD, MP3-CD, CD, CD-R, CD-RW, and VCD. It also comes with a full-function joystick remote control to easily navigate through all the features.

Philips TSi6400

Specializing in media access and control, the iPronto provides users with a versatile solution to control home theater as well as the increasing number of electronic home automation products available. The iPronto gives users the ability to configure the touch screen with the help of the PC editing software, iPronto edit. The product can be completely customized to the comfort level of the end user. The result is the flexibility to control multiple windows of information with simple dashboard finger navigation.

The system also allows users to view information about their favorite program with the Electronic Program Guide with Media Selection, access the Internet to check news and email, as well as utilize the multiple remote control functions. By utilizing wireless technology WiFi (IEEE 802.11b), iPronto is able to control devices out of their line of sight and has an always-on Internet connection by which new features and software can be sent to the unit by customer request.

The iPronto also features other built-in components that enhance the entertainment experience. The system features a built-in microphone and stereo speakers allowing users to listen to MP3s from the Internet and to be future-proof for applications such as voice recognition and telephony. The iPronto also includes USB connectivity and a MMC/SD card slot for future applications and accessories.

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (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, 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.news.philips.com.

Product and company names used herein maybe trademarks or registered trademarks and are owned by the related companies.

ATTN Broadcasters: Philips b-roll (via beta copy, fiber transmission and satellite feed), is available 24/7 from PR NEWSWIRE (212-375-0021).

Contact:

     Philips Electronics
     Lindsay Woods, 770/821-2392
     lindsay.woods@philips.com
     or
     For product information or photos:
     Manning Selvage & Lee
     Chip Bates/Deanna Gerard, 404/870-6839 or 404/870-6834
     chip.bates@mslpr.com or deanna.gerard@mslpr.com