Amsterdam, December 09, 2004 - Extending its leadership in MP3-CD technology, Philips Electronics introduced a new line of products that offer consumers added entertainment with their portable music player. Today at the 2004 Consumer Electronics Show (CES), Philips displayed three new eXpanium MP3/WMA CD players: the unique eXp5371 featuring downloadable Java games, the eXp3371 with integrated docking station and the super slim eXp7361 utilizing a digital FM tuner.

"With the new line of eXpanium products, Philips has taken the next step in entertainment innovation to allow gaming fans, travelers and music lovers greater freedom than they've ever had before," said Khalid Tuer, Philips Regional General Manager, Middle East and Africa, Philips. "By converging the listening and gaming experience into a slim design and compact portability, Philips is enhancing the lives of consumers."

eXpand Your Entertainment: Philips' eXpanium 5371

Offering innovative entertainment, Philips' eXp5371 is the world's first MP3-CD player that allows users to play embedded or Java games downloaded via the USB connector, while still enjoying their favorite music. Utilizing the USB connection, consumers can quickly access hundreds of free games from the Internet through their PC. The eXp5371 can store up to five Java games at a time, in addition to the built-in games provided with the unit.

Featuring Digital Dynamic Bass Boost and 420-second ESP for MP3 music and 840-second ESP for WMA music, the eXp5371 provides users with a consistently clear listening experience on the roughest terrain.

The ultimate mobile entertainment companion, the eXp5371 offers users a smooth music experience and exciting gaming action. Available in May, the eXp5371 will have a suggested retail price of $99.99.

eXpand your listening: Philips eXpanium 3371

Expanding music possibilities, the Philips eXp3371 enables consumers to carry their tunes wherever they go without having to use a separate device for home listening. The eXp3371 is a personal MP3 and WMA CD player that comes with its own compact and uniquely designed docking station and features powerful two-inch integrated speakers. The speakers provide listeners with a dynamic, high-quality sound that provides an alternative to PC speakers and frees users from the constraints of the computer.

Providing the freedom of choice, the eXp3371 has a rugged design that enables complete portability and offers 100-second Electronic Skip ProtectionTM (ESP) for MP3 music and 200-second ESP for WMA music. For a long-lasting music experience, users can enjoy more than 10 hours of MP3 or 20 hours of WMA music on a single CD. Available in May, the eXp3371 will have a suggested retail price of $79.99.

eXpand your options: Philips eXpanium 7361

Measuring a sleek 0.6 inches wide, the eXp7361's slim aluminum frame is compact for tight spaces and lightweight for travel. Perfect for music and sports fans alike, the eXp7361 features a built-in 30-station digital FM tuner for listening to the latest hits or commentary of sporting games.

Designed for day and night use, the eXp7361 has a remote control with a backlight for comfortable viewing at night and a joystick for easy control and navigation through a music collection. The remote offers flexibility while the small frame of the player provides an extremely thin CD player for unobtrusive transportation, a benefit for the person on the go. Featuring 420-second ESP for MP3 music and 840-second ESP for WMA music, users can enjoy 102 hours of continuous and smooth disc playback. Available in March, the eXp7361 will have a suggested retail price of $129.99.

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About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 29 billion in 2003. With activities in the three interlocking domains of healthcare, lifestyle and technology and 166,800 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.

For more information please contact:
Louis Hakim
Corporate Communications Manager
Philips Electronics Middle East and Africa
Philips
louis.hakim@philips.com
Tel: 04 - 33 53 666
Fax: 04 - 309 5160

© Press Release 2004