Amsterdam, the Netherlands and Mumbai, India - Royal Philips Electronics (NYSE: PHG, AEX: PHI) has reached an agreement to acquire India-based Alpha X-Ray Technologies. Alpha is a leading manufacturer of Cardiovascular X-Ray systems targeting the economy segment of the Indian market. Upon closing of this transaction in the fourth quarter of 2008, which is subject to certain contractual and other conditions such as regulatory approvals, Alpha will become part of the Cardiovascular X-Ray business within Philips' Healthcare sector. Financial details of this agreement were not disclosed.

The announcement marks Philips' strong presence in high-growth healthcare market in emerging economies, and follows the earlier acquisitions of healthcare companies Brazilian Dixtal Biomedica e Tecnologia, Shenzhen Goldway Industrial in China and VMI Sistemas Medicos in Brazil. In commenting on the deal, Mr. Ronald de Jong, CEO Emerging Markets of Philips Healthcare, said: "The acquisition of Alpha is another great example of how Philips continues to strengthen its industrial and commercial footprint in emerging markets. It provides us with significant presence in the high-growth economy segment for Cardiovascular X-Ray systems, underlining our commitment to deliver affordable healthcare solutions in emerging markets."

Alpha's high-quality and clinically proven economy segment product portfolio complements Philips' existing high-end Cardiovascular X-Ray range and helps Philips to capture an even larger slice of the global EUR 1.8 billion Cardiovascular X-Ray market. Analysts estimate that the economy segment is the fastest growing segment of the global Cardiovascular X-Ray market, with anticipated annual growth rates of 10% to 15% in coming years. Philips will leverage its global distribution network to sell Alpha's Cardiovascular X-Ray products thus maximizing the value of the acquisition and adding another growth engine to Philips Healthcare's emerging markets business.
"The addition of Alpha represents another significant addition to our emerging markets healthcare product portfolio, and comes on the heels of two key product introductions in India: the SureSigns VM3 patient monitor and the cost-effective Ultrasound HD15 system," said Murali Sivaraman, CEO of Philips Electronics India Ltd. "Furthermore, this acquisition highlights the pivotal role India plays in Philips' emerging markets growth strategy. Going forward, we are committed to leverage both organic and inorganic opportunities to drive growth in India," Mr. Sivaraman added.

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 133,000 employees in more than 60 countries worldwide. With sales of US$42 billion (EUR 27 billion) in 2007, 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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