Philips Semiconductors Establishes Worldwide Networking Business Line Headquartered in Silicon Valley - Company Operations

Edge: Work-Group Computing Report, March 13, 2000

Philips Semiconductors, an affiliate of Royal Philips Electronics (NYSE:PHG), Wednesday announced the formation of a new organization to design and deliver advanced semiconductors and silicon system platforms for the networking industry.

The new Networking Business Line, with worldwide headquarters in San Jose, Calif., brings together the interconnectivity and network related product lines into a single organization. This unit will concentrate on high growth networking markets including connectivity, home networking, broadband internet access, Virtual Private Networks and transmission, including fiber optics and WAN. The group has a broad portfolio of both wired and wireless products, enabling complete systems on a chip through ASSP or ASIC approaches.

Phil Pollok, who joined Philips Semiconductors in 1998 to run the Interconnectivity Business Line, has been appointed vice president and general manager of the new Networking Business Line. Prior to that, he was with GEC Plessey/Mitel Semiconductors where he was head of the wireless communications business unit.

"We have combined the strengths of Philips Semiconductors and the former VLSI Technology into an industry powerhouse for providing networking semiconductor solutions, demonstrating our commitment to being a leading supplier in these markets," said Phil Pollok. "We have a comprehensive range of products and technologies spanning USB, 1394 and wireless 802.11/HomeRF connectivity products, through broadband access devices such as cable modem, wireless OFDM and IAD to high data rate transmission products for fiber and WAN. We have an excellent team in place and are very excited by the opportunity to bring these capabilities together into highly-integrated, cost effective system solutions."

Philips Semiconductors is the ninth largest semiconductor supplier in the world according to Dataquest's 1999 preliminary market share report. Philips Semiconductors' innovations in digital audio, video and mobile technology place the company in a leadership position in the consumer, multimedia and wireless communications markets. As a global company, offices in 40 countries serve major markets. Philips Semiconductors, headquartered in Eindhoven, The Netherlands, is an affiliate of Royal Philips Electronics. Please join us at the Philips Semiconductors website: www.semiconductors.philips.com for further information.