Philips Shows Innovations

The Simplicity Event at L’Espace Grande Arche in Paris

INTOUCH, hung on the wall, converts
one-to-one communications back into ‘group-to-group’ of
‘family-to-family’ communications. © PHILIPS (by Capital Photos);

PHILIPS SHOWS INNOVATIONS BASED ON SIMPLICITY-LED DESIGN

Royal Philips Electronics (NYSE: PHG, AEX: PHI) unveiled more than 25
new design concepts, demonstrating how the company’s focus on
‘simplicity-led design’ is likely to translate into new products over
the coming three to five years across its entire healthcare, lifestyle
and technology portfolio. At The Simplicity Event at L’Espace Grande
Arche in Paris, Gerard Kleisterlee, President and Chief Executive
Officer of Philips, also announced the introduction of Hands-free
Interaction in the Hospital (HIH), a new kind of remote voice-control
for equipment used in medical environments, as a major example of how
the company’s brand positioning of ‘sense and simplicity’ is already
benefiting customers.

LOOKLOOK captures stills that can be
instantaneously sent to a mobile phone or projected onto any surface
for immediate sharing with others. © PHILIPS (by Capital Photos)

Gerard Kleisterlee, President and Chief Executive Officer of Philips
commented: “Our Simplicity Event marks a real milestone in the
transformation of Philips into a truly market-driven company. Today,
many companies recognize the role of design-led innovation. But we at
Philips have gone one step further with a special differentiator in
this area: we believe in simplicity-led design. We have focused and
refined our thinking on design-led innovation and the result is
simplicity-led design, which is our springboard to even greater
innovation. In 2004, new products accounted for 38 per cent of group
revenues and for this year, our target is 42 per cent.”

Philips Light Chimes detect changes
in the breeze and temperature and translate them into captivating
paterns and swirling light. © PHILIPS (by Capital Photos

Supporting the company’s commitment to ‘sense and simplicity’, Philips
also used the first anniversary of its brand positioning to unveil
creative work from the second wave of its brand campaign for 2005.
Being rolled out in nine markets from September, including: China,
France, Germany, India, the Netherlands, Russia, Spain, UK and US, the
campaign will cover TV, print, outdoor and online media.

THE CHAMELEON, a lamp shade that changes to match any color you ‘show’it.

© PHILIPS (by Capital Photos)

The event was supported also by the publication of the Next Simplicity
Book, to provide a full overview of the design concepts demonstrated in
the showcase and to explain the simplicity-led thinking that was used
in their development. It also features a review of the work of the
Simplicity Advisory Board (SAB), a think-tank created to advise and
inspire Philips across a wide range of design-led issues.

The Paris event, taking place over four days, features important
presentations from Gerard Kleisterlee, President and Chief Executive
Officer of Philips and Andrea Ragnetti, Chief Marketing Officer,
reporting on the deployment of the new brand positioning and showcasing
the company’s vision for the future.



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 EUR 30.3 billion in 2004. With activities in the three
interlocking domains of healthcare, lifestyle and technology and
159,700 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 www.philips.com

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