TCL Communication Technology to Target European Markets With Philips-Powered 3G Handset; Leading Chinese Manufacturer Selects Philips Nexperia(TM) Cellular System Solution for 3G Mobile Phone

By using the Nexperia Cellular System Solution 7210, TCT will beable to capitalize on the fast-growing market opportunity for 3G/UMTShandsets, bringing advanced multimedia capabilities to consumerswhilst simplifying the product development process. The solutionoffers TCT the opportunity to deliver integrated, feature-richhandsets to its rapidly expanding customer base, at home and abroad.

"Our long-term partnership with Philips as a provider ofsemiconductor technology and cellular systems know-how is moving upthe value chain with the development of our first 3G handset. Afterthe success we've had in our domestic market with Philips' SystemSolution approach, we plan to launch our first 3G handset in bothChina and Europe," said Fei Liu, Chief Executive Officer, TCT.

"With its domestic success TCT is perfectly placed to capitalizeon increasing global demand for 3G handsets," said Gert-Jan Kaat,senior vice president and general manager of the Mobile & PersonalBusiness Unit, Philips Semiconductors. "By adopting our CellularSystem approach, TCT benefits from shortened handset development timewhilst ensuring that its handsets are among the most sophisticatedavailable to the consumer."

Philips' Nexperia System Solution 7210 is a complete 3G/UMTShardware and software solution, incorporating complete baseband, RFand multimedia functionality. The advanced solution can play a varietyof audio and video formats, including MP3, WMA, MPEG-4 and H.264. Italso incorporates FM radio functionality.

Philips has pioneered the system solution approach since 1999.Today more than 150 million Nexperia-based systems have been broughtto market.

About TCL Communication Technology

Listed on the Hong Kong Stock Exchange, TCL CommunicationTechnology is a member company of one of the largest producers ofelectronic devices in China -- TCL Holdings Co., Ltd. TCLCommunication Technology is a hi-tech company committed to R&D,manufacturing and sales of mobile terminal products. Along with otherChinese mobile phone manufacturers, TCL is greatly supported by theState Development Planning Commission and the Ministry of InformationIndustry (MII).

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE:PHG) (AEX:PHI)is one of the world's biggest electronics companies and Europe'slargest, with sales of $37.66 billion (EUR 30.3 billion) in 2004. Withactivities in the three interlocking domains of healthcare, lifestyleand technology and 159,700 employees in more than 60 countries, it hasmarket leadership positions in medical diagnostic imaging and patientmonitoring, color television sets, electric shavers, lighting andsilicon system solutions. News from Philips is located atwww.semiconductors.philips.com.

Nexperia is a registered trademark of Koninklijke PhilipsElectronics N.V.