Philips to sell Polish television assembly factory to Jabil Circuit

Kwidzyn, Poland, Oct 07, 2004 - Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced today its plan to sell its Polish television assembly plant to global electronics manufacturer Jabil Circuit, Inc (NYSE: JBL).

Located in Kwidzyn, Poland, the CRT television facility is one of six Philips production facilities located in Poland, and is known as Philips Consumer Electronics Industries Poland (PCEIP). Jabil will continue production assembly for Philips from the facility, which complements a Kwidzyn PCB manufacturing production facility Jabil acquired from Philips in 2002.

The sale of the plant is part of the Business Renewal Program of Philips Consumer Electronics, which is designed to strengthen Philips global competitive position by simplifying the organization and lowering costs.

The proposed transaction, subject to approval of the relevant regulatory authorities, is expected to conclude in November 2004.

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This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.