IR News

Amsterdam, The Netherlands and Seoul, Korea, July 31, 2003 - Royal Philips Electronics (AEX: PHI, NYSE: PHG) and LG Electronics (LGEKSE:6657) today announced that LG Electronics will join the 3C DVD patent licensing group for DVD ROM and DVD Video. LG Electronics' joining is the result of its consistent investments in DVD technology and patent development. The 3C DVD licensing group was established in 1998 and currently consists of Philips, Sony and Pioneer.

John Koo, Chairman & CEO of LG Electronics said: "I'm happy that LG Electronics now joins the DVD joint licensing program, also commonly known as 3C. We will cooperate with those companies on patent protection and patent exploitation now and in the future. LG Electronics is excited to join the most professional licensing organization in the field of optical storage patent licensing and will consider future cooperation with the same partners in other optical storage programs in which LG Electronics has important patent portfolios; LG Electronics' joining 3C program shows that the technical power of LG Electronics is coming at par with the world top companies. And LG Electronics will continue to invest in the patent field to be a major global player in the future AV market."

Ruud Peters, CEO of Philips Intellectual Property & Standards, which is responsible for the implementation of the 3C licensing program commented: "We are excited about LG Electronics joining our license program, because it facilitates easy market access for companies that are active in the DVD Player and Discs business; with LG Electronics now becoming part of our existing the 3C program we have been able to increase the value of the licensing program for our licensees at no additional costs for them; I am sure our licensees will be happy with this announcement." dd