Philips and Dell Enter Multiyear Global Strategic Alliance; Agreement Covers Technology Supply, Planning and Marketing Activities

Business Wire, March 27, 2002

Business Editors

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--March 27, 2002

Royal Philips Electronics (AEX: PHI, NYSE: PHG) and Dell today announced they have entered into a global strategic alliance.

The five year agreement calls for Philips to supply cathode-ray tube and flat-panel monitors, storage devices, connectivity solutions, and other components to Dell for use in computer systems. Dell will become a preferred worldwide supplier to Philips of industry-standard server and data-storage products, workstations, and personal computers. Dell will also market and sell a comprehensive range of Philips-brand computer peripherals, along with related products.

The agreement could be worth up to $5 billion over the five years based upon 25 percent year-over-year growth. Additional financial terms were not disclosed.

The companies will also collaborate on technology planning, marketing, and optical-storage standards to more rapidly serve the needs of worldwide customers. Cooperation between the two companies is expected to lead to higher levels of innovation and sharing of best practices in supply-chain management, purchasing, and information-technology systems, among other areas.

"Expanding the relationship with Philips enables us to meet the technology requirements of customers across the globe," said Glenn Neland, vice president, Worldwide Procurement. "We believe the enhancements to our product portfolio translate to benefits in the forms of choice and value that customers look for when they make their buying decisions."

Commenting on the deal, Philips' President and CEO, Gerard Kleisterlee said: "This alliance is further evidence of Philips' transformation into a high-growth technology company, and the recognized value of our strengths in the areas of display, connectivity and storage. An alliance between one of the world's leading electronics companies and Dell is an extremely exciting proposition, not only in terms of technology, but also in improved marketing, especially in the United States. We look forward to matching our complementary expertise, and creating a more effective vehicle for offering a broader selection of industry leading technology products to Dell's and Phillips' customers."

Potential expansion of the scope of the alliance to cover other technologies and business opportunities is possible.

For further information, please contact:

Jeremy Cohen, Philips Corporate Communications, tel: 31 20

5977213

Jeremy.cohen@philips.com

Venancio Figueroa III, Dell, (512) 723-1726

venancio_figueroa@dell.com

About Dell

Dell Computer Corporation (Nasdaq: DELL), the world's most preferred computer systems company, is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. The company's revenue for the past four quarters totaled $31.2 billion. Dell, through its direct business model, designs, manufactures and customizes products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained at www.dell.com.

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 32.3 billion in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 189,000 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

'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995

This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, the levels of marketing and promotional expenditures by Philips and its competitors, raw materials and employee costs, changes in future exchange and interest rates (in particular, changes in the euro and the US dollar can materially affect results), changes in tax rates and future business combinations, acquisitions or dispositions and the rate of technical changes. Market share estimates contained in this report are based on outside sources such as specialized research institutes, industry and dealer panels, etc. in combination with management estimates.