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DVDR985 Allows Consumers to Record TV Programs, Special Moments to DVD

``Philips Electronics is committed to bringing the benefits of DVD recording to more consumers,'' said John Riddle, vice president of regional sales, Philips Consumer Electronics. ``Good Guys' ability to present, demonstrate and recommend digital technologies to consumers and their unique and expansive coverage of the West Coast's key markets make them ideal for introducing this leading-edge product to consumers.''

Philips DVDR985 allows consumers to quickly and easily transfer special moments from a camcorder to a DVD+R or DVD+RW disc using a digital i.Link(TM) data transfer connection (IEEE1394) that preserves the footage in high-quality digital picture and sound. It also includes a component video input, which offers consumers a high quality analog connection to turn their collections of VHS into higher quality digital recordings.

``Our customers have an appetite for digital technologies and the ability to use various media interchangeably and Good Guys is thrilled to be able to give them an advance on this terrific product,'' said Cathy A. Stauffer, executive vice president of merchandising and advertising, Good Guys. ``Philips' new DVD Recorder lets you record and store video with quality picture and sound, transfer previous recordings and view them any time you want -- all in the wildly popular DVD format.''

Philips DVD Recorders use the same Variable Bit Rate Recording (VBR) system used for pre-packaged DVD movies, making discs recorded on their recorders compatible and allowing consumers to enjoy the same digital quality levels they enjoy with pre-recorded DVDs. The DVDR985 also features a built-in TV tuner and an AC-3 encoder for superior sound quality.

Philips DVD Recorders also utilize the Crystal Clear Pro(TM) Progressive Scan system with a sophisticated Motion Adaptive System (DCDi(TM) chip by Faroudja), which corrects visual artifacts and optimizes the video image, resulting in razor-sharp picture performance.

In addition to DVD+RW, DVD+R and DVD Video discs, the DVDR985 also plays CD, CD-R, CD-RW, DVD-R, S-VCD and VCD discs.

The product is available now at Good Guys and has a suggested retail price of $999.

About Philips

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 2000. It is a global leader in color television sets, lighting, electric shavers 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.

About Good Guys

With annual sales of more than $800 million, Good Guys is the largest specialty retailer of higher-end consumer entertainment electronics in the nation. Good Guys offers a distinctive selection of fully featured digital and high-tech products, including name brand products at popular price points and higher-end brands and models not widely available at the large, national chains. Founded in 1973, Good Guys operates 75 stores in California, Nevada, Oregon, and Washington. For more information, visit www.goodguys.com.

DCDi is a trademark of Faroudja.

i.Link is a trademark of Sony.

Contact:

     Good Guys
     Kristen Lark, 510/747-6064
     klark@goodguys.com