Philips' New Low-Cost DVD+RW Semiconductor Reference Design Promotes Mainstream Adoption of DVD Recorders

Business Wire, June 28, 2004

SAN JOSE, Calif. -- Nexperia Reference Design Provides One of the Industry's Lowest System Bill of Materials

Royal Philips Electronics (NYSE:PHG)(AEX:PHI) today announced its new Nexperia(TM) semiconductor reference design, offering one of the industry's lowest system bill of materials (BOM) for DVD RW video recorders. According to InStat/MDR, it is estimated that the price range for DVD video recorders will drop below USD $199.00 by the end of 2004, making DVD devices more affordable for everyday consumers. Philips' new DVD RW reference design helps consumer electronics manufacturers produce high-quality, low-cost DVD video recorders that align with the market price point for mainstream adoption.

Ideal for manufacturers, Philips Nexperia DVD RW reference design is based on the Nexperia PNX725x MPEG-2 codec chipset and includes hardware schematics, BOM, an industry-standard software stack, and a comprehensive Nexperia development kit and documentation.

"Our partnership with Philips has significantly reduced our time-to-market and total BOM costs," said Peter Chen, vice president and general manager, BG digital media, BenQ Corporation. "The comprehensive approach taken by Philips has helped us to remain competitive in the fast-moving DVD recording market and has contributed to our leadership position."

"As consumers move toward the next generation of Connected Consumer products, DVD video recorders will become a standard device in the home," said Kurt Sievers, marketing and strategy manager, connected multimedia solutions, Philips Semiconductors. "With our long-standing experience in DVD technology, we are able to provide high-quality, cost-effective solutions to help drive the mainstream adoption of DVD devices. Manufacturers can rely on Philips to help them stay ahead of the curve."

Philips continues to provide the industry's foremost manufacturers with DVD RW reference designs and all the technology and software necessary to rapidly introduce DVD recorders to the market. Customers include Argus Electronics Co. Ltd, BenQ Corporation, Cason Technology Ltd., Konka Group Co. Ltd., Mico Electric Ltd., Shenzhen Mizuda Electronic Co. Ltd., Shenzhen Xoro Electronics Co. Ltd., Skyworth Multimedia International Ltd., and Quanta Storage Inc. The ongoing support Philips has garnered from customers underscores the company's commitment to serving as a major technology provider for the DVD recording market.

Philips Nexperia DVD RW low-cost reference design features a customizable remote control and flexible user interface (UI), allowing manufacturers to produce unique DVD video recorders to suit individual consumer needs in a highly competitive market. The two-layer printed circuit board design with flexible UI results in reduced manufacturing costs and easy integration. The design also includes integrated high-quality digital video technology packaged with a single SDRAM unit on a small footprint for easy manufacturing. Additionally, it offers a turnkey solution to help reduce manufacturers' research and development expenses.

Availability and Pricing

The reference design is currently available for sampling. The PNX725x chipset, at the heart of the reference design, is priced below USD $20.00.

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 $32.8 billion (EUR 29 billion) in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), Amsterdam and other stock exchanges. News from Philips is located at www.semiconductors.philips.com.

Nexperia is a trademark of Koninklijke Philips Electronics N.V.