Dec 03, 2001 transfer to Forex LloydAmsterdam, The Netherlands � Royal Philips
Electronics (AEX: PHI, NYSE: PHG), today announced it has signed a
preliminary agreement to bring Philips Power Solutions, a business
line of Philips Components, into a joint venture with Punch
International. Punch will hold 51% of the shares. Philips Power Solutions
develops, produces, and sells Switch Mode
Power Supplies used in the display, telecommunications, and emerging
consumer electronics markets. The business concentrates on solutions
for flat displays, mobile telephones, faxes, set-top boxes and optical
storage devices. Since 1995 the business has built up a leading
position in the area of customer applications. The joint venture will
include Philips Power Solutions' headquarters
and Development and Sales organization, located in Eindhoven, the
Netherlands (approximately 60 employees), and a small group in the
Asia Pacific Manufacturing Office in Hong Kong. In addition to the joint
venture transaction, it is the intention to
transfer the assembly operations of Philips Power Solutions in Ovar,
Portugal, to Punch International in Slovakia. Commenting on the agreement,
Matt Medeiros, President and CEO of
Philips Components, said: "We are extremely pleased to have found the
perfect match for this business. I strongly believe that the proposed
transaction will strengthen the future of the Power Solutions business
line." Philips is also pleased to announce that it has reached agreement
with
Forex Lloyd Ventures GmbH to takeover all the employees of Philips
Power Solutions in Ovar, and develop a contract manufacturing
operation with a focus on the automotive industry. Forex Lloyd will
also take over Philips manufacturing of remote controls (also
currently part of Philips Components), and the operation of Ovar's
plant services. The transfer does not include the business management
of the Remote Control activities, the Power Components activities, and
the Camera & Security Imaging activities. In total 515 employees are
involved in this transaction. Forex Lloyd Ventures intends to grow the
manufacturing activities of
power solutions and remote controls in Ovar into a larger operation
through a "buy and build" strategy, with further businesses still to
be acquired. These two deals are part of the previous announced strategy
of Philips
Components to focus on specific market segments that demand integrated
digital solutions based on Philips' key technologies. Both transactions
are expected to close by the end of February 2002. Media inquiries: Jeremy
Cohen, Philips Corporate Communications, tel. +31 20 59 77213
jeremy.cohen@philips.com Bert Devos, Punch International-Investor
Relations, tel. +32 (0)
92809353 bert.devos@punchinternational.com Corn� Melissen, Forex Lloyd
Ventures GmbH, tel. +31 6 53751901 About Punch Punch International is a
leading EMS provider, based in
Sint-Martens-Latem, Belgium. The company was founded in 1982 and
produces and assembles components, subsystems and end-products for
Original Equipment Manufacturers (OEM), in the consumer and
professional electronics industry. In 2000 Punch realised a turnover
of EUR 110 million, a 66% increase on 1999, with an increased net
profit of 278% (EUR 6.1million). Punch International has twelve
manufacturing centres in seven countries, with over 1,700 employees.
Punch International is quoted on the Euronext stock exchange in
Brussels. More information on Punch International is available at:
www.punchinternational.com About Forex Forex Lloyd Ventures GmbH is a
venture capital firm, based in Germany.
The company has a number of (primarily Dutch) investors as
shareholders. The two year old investment fund has to-date been drawn
up to some EUR 2.5 million. In addition to its direct participations,
Forex Lloyd Ventures GmbH manages two offshore trust funds. About Philips
Royal Philips Electronics of the Netherlands is one of the world's
biggest electronics companies and Europe's largest, with sales of EUR
37.9 billion in 2000. It is a global leader in color television sets,
lighting, electric shavers, color picture tubes for televisions and
monitors, and one-chip TV products. Its 192,000 employees in more than
60 countries are active in the areas of lighting, consumer
electronics, domestic appliances, components, semiconductors, and
medical systems. Philips is quoted on the NYSE (symbol: PHG), London,
Frankfurt, Amsterdam and other stock exchanges. News from Philips is
located at http://www.news.philips.com
