Philips Consumer Electronics Chooses iMediation for Its Distribution Network

Business Wire, Jan 10, 2001

Business Editors/High-Tech Writers

PARIS and SAN FRANCISCO--(BUSINESS WIRE)--Jan. 10, 2001

iMediation, a global provider of collaborative selling solutions, announced today that Philips Electronics has chosen the iChannel(TM) platform to help it sell consumer electronics products more efficiently over the Web via its wholesale and retail partners. This platform allows Philips to manage its brand online, sell through existing or new channel partners, and to better meet the needs of its customers.

iMediation's iChannel software will enable Philips to collaborate with its suppliers, resellers and distribution partners in developing and presenting targeted product and service offerings to online customers. The end result will be co-branded web sites facing the end consumer.

Philips initiated pilot projects using iChannel for the Consumer Electronics division in Spain and Sweden last summer. Based on the pilot results, the company plans to roll out iChannel in the near future in other Western European countries, the United States and Asia.

"This project is strategic to our e-commerce policy," said Ruud van Vessem, responsible for the European e-business rollout for Philips. "We chose iMediation because they have demonstrated not only an understanding of our business but, more importantly, how distributor and other selling relationships work."

Philips is using iChannel to enhance or initiate an online presence for its resellers and distributors. "We want to e-enable our resellers and dealers," noted Mr. van Vessem. "We offer to build or support their web site and for the many small and medium-sized retail outlets in our distributor network, this is a very attractive proposition. We link the dealer to our site or, if it's a large distributor, we align to their site. Instead of bypassing our distribution network to sell over the web, we work together to reach the end consumer. We expect both sides to benefit, since the costs of doing business should decline while we can provide more services."

"Philips understands the value of managing its brand, as well as the critical nature of leveraging the relationships it already has with its channel partners, as it sells its products and services online," said Didier Benchimol, Chairman and CEO of iMediation. "Using iMediation's iChannel software, we've enabled Philips to manage its business relationships, as well as the presentation of its marketing, messaging and branding, all while enabling their existing channels to compete online."

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 31.5 billion in 1999. 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 239,370 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 www.news.philips.com

About iMediation

iMediation is a global provider of Collaborative Selling solutions. iMediation's software and services enable business partners to jointly sell products and services online, while better managing their brands and complex sales, marketing and distribution relationships. More than 70 companies around the world use iMediation's solutions, including Comet/Kingfisher Group, Conrad Electronic, Deutsche Telekom, Hewlett Packard, HMV, L'Oreal USA and Philips Electronics. iMediation has received investments from Apax Partners, Compagnie Financiere Saint Honore, Deutsche Bank eVentures, Europ@Web, GE Equity, GIC Special Investments, Innovacom, Intel Capital, Morgan Stanley Dean Witter, Reuters Venture Capital, Rothschild Asset Management, Royal Philips Electronics, and Viventures. Founded in 1998, the company has dual headquarters in San Francisco and Paris and can be found at www.imediation.com or via telephone at 33 1 71 00 68 00 (Europe) or 1 415 399 5900 (U.S.).