Philips Electronics Drives Global Digitalization At CES 2000; Industry Influencer Forges Forward with New Products, Strategic Partnerships & Key Technology Concepts - Company Business and Marketing

Cambridge Telcom Report, Jan 10, 2000

Philips Electronics once again used its technology demonstrations and developments at the annual Consumer Electronics Show to emphasize key advances in transitioning into a digital world. Showcasing a booth filled with the hottest technology available today including set top boxes, audio/video digital entertainment options and PC peripheral devices, Philips Electronics further evidenced the important role the company plays in connecting the world.

Key advancements for Philips at this year's show included: the demonstration of a DVD Video Recorder based on DVD+RW technology, an increasing array of home entertainment options through powerful set top boxes, and digital audio developments.

"Emerging products this year also reflect the Philips concept of ambient intelligence, or behind-the scenes, embedded technology," said Robert Minkhorst, President and CEO, Philips Consumer Electronics, North America. "These products are outwardly simplified and easy to use, but contain a multitude of powerful home entertainment features tucked within their surfaces. This notion of ambient intelligence is crucial for intuitive, less-complicated technology that will ease consumers into the digital future."

Building Connections

Leveraging its strong heritage in developing living room technology, Philips is taking a key stance in transforming the living room from an entertainment center into a gateway to the world. In an effort to crystallize the vision of the future, Philips announced several set top box developments at this year's show. Visitors to the CES show in Las Vegas will be able to see a "sneak peek" of the Philips Receiver with AOLTV service in the Philips booth. AOLTV will provide AOL members with a unique blend of up-to-the-minute content and television broadcasting. The product will ship later this year. In addition, Philips has announced plans to introduce a set top box incorporating the new Microsoft WebTV Network Personal TV service featuring digital video recording (DVR) capabilities, Live TV Pause and optional Internet services. Philips will manufacture and market the hardware, which will be based on WebTV services. Philips is delivering on its commitment to align with major service providers to bring customers the latest in enhanced television services.

Philips continued to build upon the connectivity foundation set in place by previous PC peripheral and home theater introductions. Offerings at CES 2000 included new USB products as well as M-Link, a unique home theater linking technology built into Philips televisions. Philips also displayed its vision for the future with a booth demonstration of home networking based on the HAVi standard.

Driving Digital

This year, with a number of introductions and developments in DVD, digital audio, and digital television, Philips again demonstrated its cutting-edge technology. Building upon its extremely successful line of digital audio products, including the audio CD-recorder series, Philips set another new standard for home audio at CES 2000. Two of the new offerings in this category include RUSH, a portable flash memory device that can play up to two hours of digital audio files and Philips Super Audio CD player that will include DVD Video.

Philips also strengthened its leadership in the immensely popular DVD category with a demonstration of a recordable DVD player, a technology that consumers have been anticipating since the introduction of DVD-video several years ago.

A consistent leader in digital television education and development, Philips expanded its line of digital televisions with new digital ready and fully integrated models. The Nexperia silicon on systems approach from Philips Semiconductor rounded out Philips digital television offerings, giving show attendees a glimpse at the behind-the-scenes technology making digital television a reality.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of more than US $33.9 billion in 1998. 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 230,700 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. FMI: www.philipsusa.com.