Philips and Skype Offer Global, Interactive Connectivity

LAS VEGAS--(BUSINESS WIRE)--Jan. 4, 2006--Combining the optimum in
mobility, voice quality and ease of use, Philips Electronics is
teaming up with global Internet communications company Skype(TM) to
introduce a new Internet phone, the VoIP321. The new cordless phone
has dual functionality so consumers can make free Skype calls, as well
as ordinary landline calls - giving them maximum freedom and the
ability to toggle between both communications mediums. Through Skype
and Philips' joint product, consumers can experience a new level of
communication simplicity.


"The introduction of Skype compatibility to our devices is great news
for consumers, enabling them to communicate in new ways with friends
and family far away," said Nick Dosanjh, vice president and general
manager, Philips Home Communication. "Philips is actively working with
a number of companies to provide consumers with innovative
entertainment and communication solutions. The VoIP321 is designed to
allow the consumer to experience Skype's service with the convenience
of a familiar cordless telephone and the simplicity and ease of use
expected from Philips."

The VoIP321 was developed to combine the key benefits of Skype with
the advantages of Philips' home cordless technology. Skype's rich
features include: free worldwide calls, conferencing, video calls and
chats with other Skype users. Users of the VoIP321 can make and
receive both Public Switched Telephone Network (PSTN) and Internet
calls from a single handset. Enabling users to carry their contact
list anywhere in the home, the new VoIP321 allows consumers to view
who is available on Skype by simply looking at the cordless phone
display. The handset allows specific polyphonic ring tones to
distinguish Skype and landline calls.

"The Philips brand is associated with quality and exceptional design,
and we are pleased to offer consumers feature rich, user-friendly
Skype enabled products for the home and office. Our collaboration with
Philips demonstrates how Skype is revolutionizing communications,"
said James Bilefield, vice president of business development for
Skype.

The innovative Internet phone operates on Digitally Enhanced Cordless
Telephone (DECT(TM)) technology. The new DECT technology enhances the
sound and security available in a cordless phone. Consumers will
experience crystal clear sound and reduced noise interference with the
new DECT technology.

The VoIP321 is easy to use. Just a press on the Skype key allows you
to access your Skype contacts list and see who from your friends and
family are connected. Busy consumers also can multi-task and
experience hands-free conversations via the speakerphone feature.

The VoIP321 represents an important development in Philips' 'Connected
Planet' vision that enables users to enjoy wireless content and
communication anytime, anywhere. By merging telecommunications and
information with entertainment, the VoIP321 frees consumers to benefit
from wireless and Internet technology wherever they are within the
home.

Philips will launch the VoIP321 in Europe in May 2006 and in the U.S.
in July 2006.

About Skype

Skype is the world's fastest-growing service for Internet
communication, allowing people everywhere to make unlimited voice and
video calls for free. Skype is available in 27 languages and is used
in almost every country around the world. Skype generates revenue
through its premium service offerings such as making and receiving
calls to and from landline and mobile phones, as well as voicemail and
call forwarding services. Skype also has a growing network of hardware
and software partners. Skype is an eBay company (NASDAQ: EBAY). To
learn more visit skype.com.

Skype is not a telephony replacement service and cannot be used for
emergency calling.

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 $37.66 Billion (EUR 30.3 billion) in 2004. With
activities in the three interlocking domains of healthcare, lifestyle
and technology and 161,100 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.

DECT is a registered trademark of the European Telecommunications
Standards Institute (ETSI).

Skype and Global Internet Telephony Company are registered trademarks of Skype.