Andover, Mass. -- Royal Philips Electronics (NYSE: PHG; AEX: PHI) has announced at the 2007 World Conference on Interventional Oncology in Washington, D.C., that it has collaborated with Traxtal Inc. to deliver integrated soft tissue therapeutic and diagnostic navigation solutions. Combining Philips' leadership in diagnostic and interventional imaging with Traxtal's history of innovative product development in surgical navigation and therapy, the companies will offer a broad spectrum of integrated imaging and navigation solutions. Philips also owns a minority stake in Traxtal.

Leveraging Philips' technology innovations in the fields of image processing and modeling, and the advanced navigation solutions provided by Traxtal's PercuNav system, the companies seek to create the most advanced soft-tissue navigation systems on the market. Philips and Traxtal researchers are working with multiple modalities, including ultrasound, computed tomography (CT) and magnetic resonance (MR), to develop a technology offering that has the potential to improve patient outcomes and treatment accuracy through improved visualization, as well as to realize possible cost savings as procedures can be done more efficiently.

"We are delighted to be working with Philips, one of the world's leading medical imaging companies, as we bring this exciting technology to the marketplace," said Dr. Neil Glossop, president of Traxtal. "We share a common commitment to excellence in patient care and empowerment of physicians through technology."

The Traxtal PercuNav system provides advanced navigation solutions for interventional radiologists performing image-guided percutaneous diagnostic and therapeutic procedures, such as biopsies and radio-frequency ablations. Cleared (510K) for marketing in the United States in 2006 and introduced to the market earlier this year, PercuNav helps physicians guide minimally invasive devices such as needles and probes into the body using electromagnetic tracking technology. The system provides physicians with a simple, intuitive three-dimensional visualization showing the tool position superimposed on the patient's medical images. PercuNav also provides multimodality image fusion for combining ultrasound, CT and MR images in real-time during the interventional procedure.

"This cooperation will further strengthen Philips' position as a leading provider of minimal invasive therapy solutions," said Diego Olego, CTO of Philips Medical Systems. "Our combined expertise will create a unique opportunity for Philips to become the imaging supplier of choice in the image guided therapy market and it lays the foundation for development of new treatments and therapies, including solutions that may help provide better clinical outcomes, with less risk to the patient, at a lower cost." Olego went on to comment that the partnership demonstrates Philips commitment to patient focus throughout the "total care cycle."

"This technology is like switching on the headlights when driving in the dark at 100 miles per hour," stated Dr. Bradford Wood, chief of Interventional Radiology Researchand acting co-director of the Diagnostic Radiology Department at the NIH Clinical Center in Bethesda, Maryland. Dr. Wood is a pioneer in the field of image guided diagnosis and intervention and has treated more than 40 patients in clinical research studies using electro-magnetic navigation and imaging technologies.

About Traxtal Inc.

Traxtal, headquartered in Toronto, Canada, is a world leader and proven pioneer in the innovation, development and manufacture of computer assisted soft tissue navigation technologies. Traxtal was founded in 1996 exclusively to develop advanced design of instrumentation for image guided intervention. Traxtal's has extensive experience in image guided intervention as an OEM supplier of custom designed tools since 1997.

The PercuNav system launched earlier this year is the culmination of more than seven years of development work addressing the many challenges presented by soft tissue navigation.

Traxtal has an extensive portfolio of patents and patents pending. Additional information about Traxtal can be found at www.traxtal.com.