Restructuring program at Assembléon

Assembléon, formerly known as Electronic Manufacturing Technologies (EMT), a wholly owned subsidiary of Royal Philips Electronics (AEX: PHI, NYSE: PHG), today announced an organizational restructuring. The downsizing will affect approximately 570 people worldwide, 320 of whom(including 170 temporary employees) are based in Eindhoven, the Netherlands. The reorganization is expected to be complete by the end of the first quarter of 2002.

The general slowdown in the subassembly market has lead to a downturn in orders for Assembléon. The decision for restructuring has been taken in order to protect the business' current market position. The worker's council, trade unions and all personnel have been informed of the plans. Philips will make efforts to assist the affected employees find new employment in or outside the company.

Assembléon designs and manufactures surface mounting machines that are used to put semiconductors and other active and passive components on printed circuit boards. The business is headquartered in Eindhoven, the Netherlands, and employs approximately 1,200 people worldwide.

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Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 37.9 billion in 2000. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and

monitors, and one-chip TV products. Its 212,390 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.