Austin, Texas and Andover, Mass.Royal Philips (NYSE: PHG, AEX: PHI)and Texas Healthcare Network, Inc. (THN) have entered into a joint agreement that provides rural community hospitals and clinics with the Philips iSite Picture Archiving and Communications System (PACS). THN will jointly train, install and support their healthcare customers on PACS and work with Philips to maintain the most current level of system functionality and operations. Philips will provide all the latest enhancements and support to THN and their members.

After reviewing and analyzing many different PACS offerings we actively pursued Philips for a partnership based upon their system functionality, system architecture, customer support integrity and strategic direction, said Randy Zunke, president of THN. It was also very reassuring to know that KLAS has rated Philips iSite PACS Best in KLAS based upon several different factors all of which we deemed important for our healthcare organizations.

Philips iSite PACS was named Best in KLAS PACS in the 2005 Top 20 Year-End Best in KLAS Awards report from KLAS Enterprises (page 14). This was the third consecutive Best in KLAS ranking for iSite, demonstrating Philips continued leadership in the PACS category.


iSite PACS is an innovative image and information management system that delivers on-demand diagnostic-quality images over existing networks, advanced radiology reading stations for radiologists and always online long-term storage. The technology increases image availability and overall reading efficiency and will allow Healthcare Professionals to access patient images in a more timely manner, thus improving quality of patient care.

We are very pleased to provide PACS to the community hospitals and clinics of the Texas Health Network, said Oran Muduroglu, CEO, Healthcare Informatics, for Philips Medical Systems. We believe that simplicity should be the goal of technology. Philips is committed to the improvement of peoples lives by enabling more effective and efficient patient care through applications such as iSite PACS.

About Texas Healthcare Network, Inc.

Texas Healthcare Network, Inc. is a technology service provider to healthcare organizations. It is focused on enabling hospitals and clinics with leading edge technology that improve productivity plus lowering procurement and operational cost. THN concentrates on rural healthcare providers with less than 200 beds and provides services that include: Internet Access, Email, HIPAA Security Services, IT Planning and Management, Radiology Information System (RIS), Transcription Services, Electronic Medical Record (EMR) and PACS.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of sense and simplicity. Headquartered in the Netherlands, Philips employs approximately 125,500 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.

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