ENHANCE YOUR HOME VIDEO COLLECTION WITH PHILIPS NEW DVD RECORDERS

Philips Continues Leadership in DVD+RW with the Introduction of Two New Recorders and a DVD Recorder Home Theater System

LAS VEGAS, January 8, 2003 - Building on its leadership in DVD Recording, Philips Electronics introduced two new DVD Recorders and a DVD Recorder home theater system today at the Consumer Electronics Show (CES) in Las Vegas. Based on DVD+RW technology, the new DVDR75, DVDR80 and LX9000R provide consumers with three new products to enjoy the benefits of DVD+RW that include outstanding picture quality and the ability to capture memories on a rewritable DVD+RW or permanent DVD+R disc. With the ability to play the recordings back on most existing and future DVD players, consumers can share their memories with family and friends.

"With the introduction of our new DVD Recorders, consumers now have a variety of entertainment options for enjoying the benefits of the DVD+RW format. From the DVDR80 with up to eight hours of video recording to the complete home entertainment experience of the LX9000R, consumers can now choose which recorder best fits their lifestyle," said Michael Lang, general manager, audio/video, Philips Consumer Electronics, North America. "Our new DVD Recorder line demonstrates Philips ongoing commitment to incorporate consumer and retail feedback into our products and showcases the best designs and ease-of-use that consumers demand. Our customers want an easy-to-use DVD video recorder that works instantaneously, without having to worry about different recording modes or formats."

The Philips DVDR75, DVDR80 and LX9000R allow consumers new options for preserving family celebrations or their favorite television shows on DVD. Using Philips DVD Recorders, consumers can quickly and easily transfer special moments from a camcorder to a permanent DVD+R or rewritable DVD+RW disc, depending on the consumer's preference. Philips DVD Recorders feature the Variable Bit Rate (VBR) recording system that is used with pre-packaged DVD Video movies. VBR provides the same digital quality levels consumers enjoy with pre-recorded DVDs.

Perfect Copies of Home Videos: DVDR75
The DVDR75 also allows consumers to quickly and easily transfer their favorite videotapes and broadcast programming to DVD. The DVDR75 features i.LINKTM for digital copying from camcorders, allowing consumers to digitally preserve their favorite past and future family moments.
In addition, the DVDR75 features progressive scan for razor sharp pictures and top quality sound. Including VCRPlus+® for easy timer programming and up to six hours of video recording per side, the DVDR75 provides consumers a more affordable DVD Recording option. Available in March, the DVDR75 will have a suggested retail price of $699.

The Ultimate in DVD Recording: DVDR80
The DVDR80 provides consumers the ultimate in DVD Recording with high quality picture and sound performance, as well as ease-of-use. Point and click programming through an on-screen TV guide allows for the ultimate programming so the consumer will never miss their favorite TV program. In addition, consumers can easily create perfect copies of home videos through the i.LINKTM digital connections from their camcorders. The DVDR80 also features a disc manager which allows instant viewing of all recorded discs. Combined with eight hours of recording time and the index picture screen and favorite scene selection, digital masterpieces are just a click away.
In addition, Philips DVDR80 utilizes a motion-compensated noise filter to reduce noise in recordings from analog broadcasts and other sources such as old videotapes. The DVDR80 also features Progressive Scan with a sophisticated Motion Adaptive System (DCDi by Faroudja) that corrects visual artifacts and optimizes the video image, resulting in razor-sharp picture performance. The DVDR80 will be available in April and will have a suggested retail price of $799.

The Ultimate Home Theater Solution: Philips LX9000R
Philips LX9000R is the first home theater system to offer consumers a full home theater solution featuring DVD Recording. Combining DVD Recording with a high-end audio package, the LX9000R is the ultimate home theater solution, offering consumers all their home theater needs in one system.
The new system features a high performance DVD+RW Recorder boasting six hours of recording per disc from a wide range of video sources, including the integrated TV tuner. For added convenience, the innovative i.LINK Digital Video connection allows users to connect their camcorders to make perfect copies from their camcorder tapes to a DVD+RW or DVD+R.
Enhancing the user's life and entertainment, the LX9000R features "twin subs" which have the subwoofer integrated into the speaker stands to provide a powerful yet a discrete sound solution. The LX9000R has a minimalist aluminum front finish featuring a disc tray concealed behind the moving display. To ensure optimal sound clarity, the LX9000R features Philips' Clear Voice™ technology that clearly recreates dialogue so it can be heard above the exciting action sounds in dramatic movie scenes. Additionally, the system includes a Cinema Center Speaker, allowing users to be enveloped in a realistic sound experience, produced by the unique configuration of five multi-directional speaker drivers.
Available fall 2003, the LX9000R will have a suggested retail price of $1,299.

DVD+RW Provides Consumers Compatibility and Convergence
Philips DVD Recorders utilize the world's most accepted and well-regarded recording format, DVD+RW technology. The DVD+RW format offers consumers compatibility and convergence, allowing users to not only record their precious memories on a DVD+RW or DVD+R disc, but be able to utilize the disc with most existing DVD-Video players. Additionally, the DVD+RW format offers consumers the ability to utilize their recorded disc with both CE and PC equipment. Featuring support among many of the major consumer electronic companies, the following companies utilize the DVD+RW format: Philips, Sony, Dell, HP, MCC/Verbatim, Ricoh, Thomson, Yamaha and Fujitsu-Siemens among many others.

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