Partner Press Release
Philips Semiconductors Announces RosettaNet Partner Interface Processes With Avnet

Philips Semiconductors Achieves eBusiness Milestone With Successful Implementation of RosettaNet Open Supply Chain

For Release October 10, 2000

SAN FRANCISCO

Philips Semiconductors, an affiliate of Royal Philips Electronics (NYSE:PHG), today announced it has achieved a major milestone in open supply chain management by successfully implementing RosettaNet Partner Interface Processes (PIPs) exchange with Avnet, Inc., a Global Franchise Partner of Philips Semiconductors. This milestone demonstrates Philips Semiconductors' progress executing its eBusiness strategy that increases business efficiencies internally and with partners worldwide.

"Our distribution partners' embracement of RosettaNet open supply chain standards delivers dramatic, mutual efficiencies toward achieving business goals," said Mike Hamper, Senior Vice President of Global Sales Operations for Philips Semiconductors, and member of RosettaNet's Electronic Components Board. "Today, having achieved secure transmissions with our key distribution partners, Philips Semiconductors and partners begin reaping the business benefits that will amount to many millions of dollars in cost savings."

"In implementing RosettaNet standards, Philips Semiconductors, Avnet, Arrow and Pioneer-Standard have created a dynamic, flexible trading partner network," said Jennifer Hamilton, CEO of RosettaNet. "Leveraging the global reach of the Internet, these companies can create new relationships as well as increase the breadth and depth of current relationships -- improving quality of business for everyone involved."

Philips Semiconductors is driving a variety of global initiatives to streamline business processes as part of its worldwide eBusiness strategy. Philips Semiconductors is working with other RosettaNet partners such as Arrow and Pioneer-Standard to implement additional PIPs as they are released into production by RosettaNet. RosettaNet represents a major industry initiative toward achieving open supply chain management standards and processes. Philips Semiconductors participates in RosettaNet's Electronic Components Board, and is a founding member of the RosettaNet Semiconductor Manufacturing Board.

About RosettaNet
RosettaNet is an independent, self-funded, non-profit consortium dedicated to the development and deployment of standard electronic business interfaces to align the processes between supply chain partners on a global basis. More than 300 companies representing over $1 trillion in annual information technology, electronic components and semiconductor manufacturing revenues currently participate in RosettaNet's standards development, strategy and implementation activities.

About Philips Semiconductors
Philips Semiconductors, which has annual revenues of approximately $5 billion, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperiaâ„¢ platform and VLSI Velocityâ„¢ tool set. The company's Sea-of-IPâ„¢ design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: www.philips.semiconductors.com.