Murrysville, Pa., USA - Royal Philips Electronics (NYSE: PHG, AEX: PHI) today will mark the opening of a new manufacturing center near its Home Healthcare Solutions headquarters, signaling a new day for sleep therapy.

The state-of-the-art facility is devoted to high volume production of next generation sleep therapy systems. The medical devices are used for treating obstructive sleep apnea (OSA), which is characterized by a cessation of breathing during sleep. While there are an estimated 18-20 million sufferers in the United States alone, many remain undiagnosed and untreated. Similar trends for OSA prevail around the world.

The modern two-level building sits atop 34 acres in Westmoreland Business and Research Park in Upper Burrell, Pa., seven miles from Philips Respironics main Murrysville campus. From the environmentally friendly design to advanced automation systems, the 172,000-square-foot facility is a model for manufacturing and workplace excellence. Philips Respironics is pursuing LEED (Leadership in Energy and Environmental Design) silver certification for “green building” practices, which range from energy management and recycling programs to amenities such as a fitness center, walking trail, and designated parking for hybrid vehicles.

"We are proud of Philips Respironics 33-year history in Western Pennsylvania, and we are delighted to mark the opening of this new facility with a preview of our latest innovation in sleep. In doing so, we are signaling a new day for customers, their patients, and our associates," said Don Spence, CEO of Philips Home Healthcare Solutions. "We built this facility to ensure the highest level of quality and reliability. We also set out to create a bright, healthy and inspiring environment for our employees."

Approximately 325 Philips Respironics associates will occupy the new center, which is expected to be fully operational by year-end. It houses manufacturing, engineering, quality control, testing and automation involved in the production of sleep therapy devices. The facility offers many other benefits including the potential for high volume material logistics and production and optimization of process efficiencies. It also is home to the McGinnis Training Center, 13 conference facilities, and a spacious cafeteria.

Philips Respironics’ existing 125,000-square-foot manufacturing site at its main campus in Murrysville will be used as a multi-purpose facility and will continue production of ventilation and neonatal products used in the hospital and homecare markets.

Philips Respironics first commercialized continuous positive airway pressure (CPAP) for treating OSA in 1985. Today, PAP therapy is a first line of treatment for millions of sufferers. Considered the “gold standard,” Philips Respironics has made ongoing advancements in its legacy sleep therapy systems to enhance both comfort and care of patients. Its next generation devices are packed with intelligence. In addition to proven therapeutic benefits, the smart systems can monitor and report activity breath by breath, offering unparalleled access to vital patient information. "We combined 25 years of experience with state-of-the-art technology to introduce a highly advanced system with features designed to better support our customers and the OSA patients they serve worldwide," Spence added.

Philips Respironics will officially introduce its new sleep therapy series in North America at Medtrade, the leading trade show for the home medical equipment industry, on Oct. 13 in Atlanta. At today’s opening ceremony, guests will get to preview the new system as it comes off the production line and experience it firsthand in breathing demonstrations. Business and community leaders also will tour the campus.

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 approximately 116,000 employees in more than 60 countries worldwide. With sales of $38 billion (EUR 26 billion) in 2008, 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.


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