Philips achieves environmental milestone through RoHS compliance

November 11, 2004

Amsterdam, Nov 11, 2004 - Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced an environmental program milestone. Philips has acted on upcoming EU legislation on Restriction of Hazardous Substances (RoHS) by announcing that by the end of 2004, 80 percent of its CRT monitors will be fully RoHS compliant. The first CRT – the 107T6 – is to be introduced in November 2004, 18 months ahead of the planned EU directive. The RoHS directive will come into effect per 1 July 2006 and will ban lead, cadmium, mercury, chromium 6+ and two brominated flame-retardants from electronic products.

Philips’ RoHS compliance program, which goes beyond lead-free soldering to include lead-free components in consumer electronic products from video to baby care, is ahead of legislation and leading the EU RoHS directive within Europe. Through a more stringent application than competitors of the measurement of maximum lead concentration levels, Philips’ RoHS compliance initiatives will provide even greater environmental and health benefits to consumers in the EU and around the world.

“As a leading technology company, we go beyond fulfilling minimum legislative requirements and look to how we can contribute to total environmental gains through our products and technologies,” said Rudy Provoost, CEO of Philips Consumer Electronics. “Our care for the environment is embedded into the whole tissue of the organization as it is a part of our culture, product development, and overall business strategy.”

Philips dedication to responsible entrepreneurship dates back to the founding of the company. Philips’ unique proactive approach is an ongoing journey full of opportunity to build a better world by integrating and balancing all three elements of the triple bottom line in its business through the environment, social and economic responsibility. In 2004, for the second consecutive year, Philips was ranked number one in its sector in the Dow Jones Sustainability Index. The company was noted for strengthening its sustainability governance and vertically integrating sustainability management in product divisions, businesses and regions, which has led the company to respond to unique market challenges in developing countries.