MURRYSVILLE, PA and MUNICH – March 3, 2010 – Royal Philips Electronics (NYSE: PHG, AEX: PHI) and Cinterion Wireless Modules, the global leader in cellular machine-to-machine (M2M) communication modules, announced today that the Philips Respironics System One sleep therapy solution won the prestigious Best Embedded End-to-End Service Award, part of the GSMA’s Embedded Mobile Competition. The M2M solution integrates one of Cinterion’s award-winning Evolution Platform modules and, for the first time, marries mobility and reliable two-way wireless communications with significant advancements in sleep apnea therapy to help millions of patients and their healthcare providers who must meet rigorous new reporting standards. The device currently operates on the nPhase AT&T network in the U.S. and will roll out in markets around the world over the coming year.

Sleep apnea is a potentially life threatening condition that occurs when a person repeatedly stops breathing during sleep. System One provides treatment by delivering a specific flow of pressurized air through a mask to keep the airway open. The new solution integrates Cinterion’s award-winning TC65i module to enable two-way, anywhere wireless communication between the patient’s device and doctor. The Cinterion module sends sophisticated patient breathing data from the device to a secure EncoreAnywhere™ Web-based platform. Physicians log on to EncoreAnywhere to obtain timely, detailed breathing reports and respond with prescription air pressure changes sent instantly over-the-air to the device providing immediate patient relief. Cinterion’s TC65i module provides on-board memory to store reports that detail every breath a patient takes for up to five days.

In addition, the system provides storage capacity for six months of chronologically arranged compliance data necessary for reimbursement from healthcare providers.

“Philips Respironics and Cinterion Wireless Modules were selected for the joint Best Embedded End-to-End ServiceAward because of their collaborative effort to bring wireless M2M innovation to the healthcare sector,” said Alex Sinclair, chief technology officer at the GSMA. “System One sleep therapy delivers cost effective patient care and improved treatment efficiency and, along with the GSMA’s Embedded Mobile Competition, encourages partnerships between mobile network operators and medical equipment manufacturers to drive exciting wireless growth in the healthcare sector.”

The GSMA Embedded Mobile Competition recognizes new and innovative devices and services used in key vertical markets to encourage innovation and partnerships. Judges from mobile network operators and industry analysts selected the winners based on innovation, functionality, business models, market potential and contribution towards developing a strong M2M ecosystem.

“This award is proof of our vision of working together with industry leading Cinterion to meet today’s healthcare challenges with smart technology solutions that enable improved care,” says Donald Spence, CEO of Philips Home Healthcare Solutions. “In designing System One, we took a smarter approach to sleep management by adding mobility and immediate two-way communications to create our most sophisticated sleep therapy system available today.”

“Philips Respironics and Cinterion have set a new industry standard for intelligent, effective treatment,” said Norbert Muhrer, CEO, Cinterion Wireless Modules. “The telehealth vertical market is poised for enormous growth and wireless network operators are realizing the tremendous opportunity to add dedicated new users and revenue without overloading networks. This award demonstrates Cinterion’s commitment to developing smart worldwide M2M technology that contributes to improved patient well-being and continued business growth – for the wireless industry and the vertical markets we serve.” 

For more information, please visit: www.respironicssleeptherapysystems.respironics.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 approximately 116,000 employees in more than 60 countries worldwide. With sales of US$32.3 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 at www.philips.com/newscenter.

About Cinterion Wireless Modules

Cinterion Wireless Modules is the worldwide leading supplier of cellular machine-to-machine (M2M) communication modules and combines unparalleled M2M engineering expertise and localized worldwide customer support with a strong portfolio of high-quality GSM, GPRS, EDGE, UMTS and HSPA products. Cinterion is a reliable partner and valued by many vertical market customers for its award-winning modules which enable machines, equipment and vehicles to communicate over wireless networks helping enterprises dramatically cut costs and increase productivity and efficiency. Cinterion products are carrier and FTA approved and used for industries including remote maintenance and control; metering; payment systems; routers and gateways; security systems; healthcare; automotive and eToll; tracking and tracing; environmental monitoring and more. The firm’s global headquarters are in Munich, Germany with sales and support offices in local markets around the world. For more information, please visit: www.cinterion.com.

About GSMA

The GSMA represents the interests of the worldwide mobile communications industry. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations. The GSMA is focused on innovating, incubating and creating new opportunities for its membership, all with the end goal of driving the growth of the mobile communications industry. It also produces the premier industry events including Mobile World Congress in Barcelona and Mobile Asia Congress.  For more information, please visit Mobile World Live, the new online portal for the mobile communications industry, atwww.mobileworldlive.com or the GSMA corporate website at www.gsmworld.com.

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