Philips Consumer Electronics Company announces contract with DIRECTV, Inc

Business Wire, April 26, 1996

KNOXVILLE, Tenn.--(BUSINESS WIRE)--April 26, 1996--Philips Consumer Electronics Company (PCEC) today announced the signing of a contract with DIRECTV, Inc., that will allow PCEC to manufacture and market the DSS(R) system -- the system that is used to receive DIRECTV(R) programming -- under the Magnavox, Philips and Magnavox MX brand names.

Products will be available beginning this summer.

"We're very pleased to form a partnership with industry leader DIRECTV for our line of digital broadcast systems," said Robert Minkhorst, PCEC President and CEO. "DIRECTV's dominance in the small-dish digital broadcast satellite (DBS) business, combined with Philips' leadership in digital technology and retail distribution, will enable us to capitalize on the fast growing direct broadcast satellite market. The explosive rate of recent DSS retail sales indicates that DSS already has won the digital broadcast system format battle of the mid-`90s, just as VHS won the video cassette recorder format war in the `80s. And, in both cases, the consumer has clearly emerged the winner."

According to the Electronics Industry Association, the DSS system is the fastest selling new consumer electronics product in history, outselling first-year sales of the VCR and compact disc player.

Philips' three initial offerings will include advanced features like a 32-bit processor/operating system, 16-color menu display with an advanced menu system and adjustable screen font sizes, one-touch tuning and VCR record (a StarSight(TM) feature), advanced VCR control features, a universal UHF remote that will allow remote access to the set-top box from anywhere in the house, and a front-panel display.

DIRECTV, the nation's leading DBS service with up to 175 channels of digital programming, offers some of the most popular cable TV networks to owners of the DSS system, including ESPN and ESPN 2, The Disney Channel, Discovery Channel, and E! Entertainment Television. DIRECTV customers also have access to up to 55 pay per view channels -- more than any DBS or cable provider -- that features movies, sports and special events. Hit Hollywood films appear every 30 minutes on Direct Ticket(TM) Pay Per View and cost only $2.99. Sports programming on DIRECTV is unrivaled, with season packages available from the NFL, NBA, NHL, and Major League Baseball. Music Choice on DIRECTV offers 31 commercial-free digital quality audio channels.

"This is an important partnership that PCEC has forged with DIRECTV," said Gary Pearson, PCEC Vice President and General Manager, Business Development. "Our partnership will extend the market penetration of DSS and expand DSS system options and features, such as interactivity with personal computers and TV ghost cancellation. Also, teaming DIRECTV's outstanding programming service with our superior product distribution system will make this a potent alliance."

"DIRECTV is extremely pleased to welcome Philips, with its reputation for innovation and quality products, to the DSS family," said Jeff Crosby, vice president of Digital Satellite Systems for DIRECTV. "The Philips DSS system lineup promises to offer several unique features that will enhance the ownership and viewing experience. The availability of the Philips DSS systems will provide prospective DSS owners with greater choice and stimulate growth of this revolutionary consumer electronics product."

Philips Consumer Electronics Company designs, manufactures, markets and services Philips, Magnavox and MX Series consumer, professional and commercial electronics products. PCEC, with headquarters in Knoxville, Tenn., is a division of Philips Electronics North American Corporation, a $7 billion concern with corporate headquarters in New York. PCEC also is part of Philips Electronics N.V., a $40 billion global electronics concern based in Eindhoven, The Netherlands.

Philips maintains a site on the World Wide Web for its Magnavox brand at HTTP://WWW.MAGNAVOX.COM. -0-

Note to Editors: DIRECTV and DSS are registered trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corp.

CONTACT: Philips Consumer Electronics Company, Knoxville

Jill Greenman, 423/521-3274

W. Jason Hill, 423/521-4395