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DVD+RW is designed from the ground up to be compatible with PC and consumer applications and will handle both video and data storage in an optimized and compatible manner. ``Philips is very happy to be adding Microsoft to the growing list of companies supporting DVD+RW and we are pleased to work with them to add support for DVD+RW storage in the next version of Windows. We believe that support in Windows is a key milestone in our effort to bring DVD+RW benefits to a broad set of users,'' said Jan Oosterveld, Philips senior vice president, corporate strategy.

Philips and Microsoft initially worked together on the Mount Rainier project with the objective to enable seamless integration of optical storage devices into the operating system. Mike Toutonghi, vice president of Microsoft's eHome division noted, ``Microsoft feels that DVD+RW provides a convenient option for the converging storage requirements of the PC and consumer electronics devices. Our support of DVD+RW in Windows will be one way to satisfy the growing need for a high-density optical storage solution.''

At WinHEC, Philips will present how to record video on DVD+RW discs on a PC, while assuring optimal compatibility with DVD video players and PC DVD-ROM drives.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 189,000 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. News from Philips is located at www.news.philips.com.

ATTN Broadcasters: Philips b-roll (via beta copy, fiber transmission and satellite feed), is available 24/7 from PR NEWSWIRE (212-375-0021).

About Mount Rainier

The Mount Rainier companies group is comprised of Compaq, Microsoft, Philips Electronics and Sony.

About The DVD+RW Alliance

The DVD+RW Alliance is a voluntary group of industry-leading personal computing manufacturers, optical storage and electronics manufacturers including Dell (Nasdaq: DELL), Hewlett-Packard Company (NYSE: HWP), MCC/Verbatim, Philips Electronics, Ricoh Company, Ltd. (ADR: RICOY), Sony Corporation, Thomson Multimedia (NYSE: TMS) and Yamaha Corporation. The companies promote the universally compatible, rewritable DVD+RW format that enables true convergence between personal computing and consumer electronics products. DVD+R and DVD+RW discs written on DVD+RW/+R recorder can be read and played in most DVD-Video players and DVD-ROM drives. The DVD+RW format provides consumers with a simple, compatible and creative solution for DVD recording. More than 50 additional companies have formally pledged support for DVD+RW/+R technology. Further details about the DVD+RW Alliance and supporting companies can be found at www.dvdrw.com.

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SOURCE: Royal Philips Electronics