March 30, 2010

PHILIPS RESPIRONICS’ MURRYSVILLE PLANT NAMED ONE OF NATION’S TOP TEN MANUFACTRING PLANTS BY INDUSTRYWEEK MAGAZINE

Murrysville, Pa., USA –- Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced that the Philips Respironics’ manufacturing plant in Murrysville, Pa., has been awarded a spot inIndustryWeek’s Top 10 Best Plants of 2009. The winning factory’s accomplishments are featured in the cover story of the January 2010 issue of the leading manufacturing trade publication. The 125,000-square-foot facility, which opened in 1990, is one of two manufacturing facilities Philips Respironics operates in the region.

Competing with manufacturers throughout North America, rigorous judging criteria were used to evaluate management practices and performance in several areas: “customer and supplier relations, employee involvement, productivity, cost reductions, manufacturing flexibility and responsiveness, inventory management, environmental and safety performance, and market results.” Once the Philips Respironics plant was named a finalist, an onsite visit by theIndustryWeek editor-in-chief catapulted the center into one of the Top 10 Best.

Philips Respironics is one of the world’s leading providers of sleep and respiratory care products. As the manufacturer of six product lines, including medical devices to aid people suffering from sleep apnea, the Murrysville plant was recognized for excelling in continuous self evaluation and improvement.  IndustryWeek praised the establishment of five basic focuses – quality, cost, delivery, safety, and morale – which has guided the plant to increase its labor efficiency by 30 percent.

The plant has also developed an Exchange Team which encourages employees to actively engage in improving the organizational environment. The program has led the plant to install an onsite fitness center and establish a recycling program, which has led to a 50 percent decrease in plant waste materials that enter landfills.  

“It is an honor to be recognized as one of the nation’s top plants,” said Eric Kulikowski, director of North American Operations for Philips Home Healthcare Solutions. “Our employees have worked hard to create a center that allows them to assemble the best quality medical products. We recognize that our work is important and will continue striving to achieve the highest level of efficiency and quality. The best practices that earned this recognition for the first plant we started in Murrysville and continue to operate are being carried out in our new manufacturing center for our sleep therapy devices, which opened last year.”

Philips Respironics’ Murrysville, Pa. plant is one of two winning factories in IndustryWeek’s 2009 Best Plants roster for Philips. It joins Philips Professional Luminaries plant in Sparta, Tenn.  The 2009 winners will be recognized at IndustryWeek’s annual IW Best Plants conference, April 19-21, 2010 in Cleveland.

For media inquiries, please contact:

Maryellen Bizzack

Director, Marketing and Communications

Philips Home Healthcare Solutions

Tel: +1 (724) 387-5006

E-mail: maryellen.bizzack@philips.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs more than 116,000 employees in more than 60 countries worldwide. With sales of $32.3 billion (EUR 23 billion) in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located atwww.philips.com/newscenter.