Philips Launches the World's Smallest MP3-CD Player - the Pocket-Sized 8cm eXpanium

Business Wire, May 2, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--May 2, 2001

MP3-CD portable delivers over three hours of compressed MP3, UDF or

AAC audio from single disc

Philips is extending the popularity of MP3-CD playback by shrinking the CD player itself - with a CD portable specifically designed to play 8cm (3-inch) CDs which can contain over three hours of compressed digital audio in formats like MP3, UDF or AAC.

The 8cm eXpanium(TM), EXP 401, to be launched this Fall, is even smaller than a standard 12cm CD and weighs about .5 pounds (220g) - small and light enough to fit comfortably in a pocket.

A blank 8cm (3-inch) disc - costing less than US $2.00 - can store up to 200Mb of music, making the 8cm eXpanium an unbeatably cost effective method of enjoying music on the move. It is also highly convenient, since the disc's size allows the CD player to be much smaller than `conventional' portable CD players. Furthermore, creating discs for playing back on the 8cm eXpanium is also quick and easy, and no different from creating a 12cm CD-R or CD-RW disc.

Maximum enjoyment of music on the move

Powered by a single AA battery, the 8cm eXpanium offers maximum enjoyment of music on the move. Continuous CD playback is ensured by Philips' leading-edge Magic(TM) ESP (Electronic Skip Protection) technology, which provides a 100-second music buffer for MP3-CD files compressed at 128 kbps. Dynamic Bass Boost provides two levels of bass enhancement at every volume level while ensuring music remains distortion-free.

Other features include:

      --  Fast track navigation via easy-to-read LCD display showing
        album and track numbers.

      --  Programming of up to 50 tracks with shuffle play and introscan

      --  Hold/Resume modes

      --  MP3-CD playback (32-320 Kbps including Variable Bit Rate)

      --  8cm CD compatibility (Audio CD, CD-R, CD-RW)

      --  Headphone and AC/DC adapter included

The 8cm eXpanium is being launched less than a year after Philips introduced the first members of its MP3-CD family, the eXpanium EXP103 portable and the FW-M55 hi-fi mini system, along with the RUSH(TM) solid state digital audio device. Later this year, Philips will announce further extensions of this family with a whole range of portable audio products and home audio systems all featuring MP3-CD playback.

"The CD is a part of daily life throughout the world," says Guy Demuynck, senior vice president Royal Philips Electronics and CEO, Philips Consumer Electronics Mainstream. "Just as MP3-CD playback extends the CD's versatility even further, the 8cm eXpanium means music on the move has never been more convenient or affordable." See eXpanium online!

Full details and specifications of the Philips 8cm eXpanium can be found on a dedicated website: http://www.expanium.philips.com.

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $34.9 billion (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 219,400 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.

Important editorial notes

The products described in this press release are for personal use only. Unauthorized duplication and distribution of Internet/CD recordings is a violation of copyright law.

In certain countries, including the United Kingdom and certain Commonwealth countries, use of the products as suggested in this press release may require the authorization of copyright holders.

eXpanium and RUSH are registered trademarks of Royal Philips Electronics.