Philips Announces First Internet Radio Shelf System

Business Wire, Jan 5, 2001

Business Editors & Technology Writers

CES 2001

LAS VEGAS--(BUSINESS WIRE)--Jan. 5, 2001

Access the World's Music With the Touch of a Button

Philips Consumer Electronics (NYSE: PHG) showcased today the first Internet Radio Mini Shelf System, the FW-i1000, at the Consumer Electronics Show (CES).

Philips' Internet Radio Mini Shelf System is the first true audio convergence product combining the Internet with a well-established audio product, a CD mini shelf system.

Used with a broadband connection, the innovative new FW-i1000 brings uninterrupted streaming digital audio from the Internet, allowing consumers access to more than 1,000 of the world's highest quality Internet radio stations. The FW-i1000 delivers excellent sound quality due to the high bit-rate of its audio streams as well as its many sound enhancement features such as wOOx(TM) speaker technology.

"The growth of Internet radio has created a consumer demand for devices that can access and play Internet radio. The FW-i1000 creates a whole new world of possibilities for music and entertainment," said Andy Mintz, senior vice president and general manager, Audio, Philips Consumer Electronics, North America. "It is estimated that more than 3.5 million college students listen to streaming audio each week. Other studies show that Internet radio usage has more than doubled since 1999. This market has enormous potential and Philips has a terrific product, in the FW-i1000 to offer to this audience."

Ease of Use

Since the broadband connection is always available through a home network, there is no need to set-up the system every time a consumer wants to listen to Internet music or entertainment - it's automatic. Accessing the reach of worldwide music and entertainment is as easy as pressing a button. Just as a consumer would press his/her choice of CD, radio or cassette source options on a CD mini system, one also can simply press "Internet" to instantaneously hear radio from around the world.

The Philips system also will allow consumers to sort radio stations by genre, region or language for greater flexibility and customization. For example, users can select music/radio through pre-categorized channels based on:

    --  Genre: Alternative, Blues, Classic, Country, News, Sports,
        Oldies, etc.

    --  Language: English, Spanish, French, Chinese, Russian, Japanese,
        etc.

    --  Region: North America, Latin America, Europe, Asia Pacific,
        Africa, Middle East

The FW-i1000 also can display the station name, and when available, the artist and title, while the music is playing.

Additional Functionality

In addition to having a 3-CD changer and 220 Watts of power, the FW-i1000 Internet Shelf System also features Philips' proprietary power wOOx speaker technology for deeper bass.

The FW-i1000's connection to a home network brings consumers even more playback options. For example, Philips Internet Shelf System also can be used as a playback device of MP3 files stored on a home PC. The Philips system will be upgradeable so that when new Internet audio functions become available, the Philips system, through the broadband connection, has the ability to update its features.

Philips FW-i1000 Internet radio shelf system will be available in third quarter 2001.

iM(TM) Tuning Service

Through a licensing agreement with iM Networks, Inc., Philips is offering the iM Tuning Service to its consumers free of charge. FW-i1000 users get fun and easy access to the Best of Planet(TM) content on the iM Band(TM) plus thousands of Internet radio stations from all over the world.

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 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.

iM Networks, iM, iM Tuning, iM Band and Best of Planet are trademarks of iM Networks, Inc.