Philips lowers its stake in LG.Philips LCD to 19.9%

Amsterdam, The Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) today announced it has sold 46.4 million shares of common stock in LG.Philips LCD Co., Ltd. (“LPL”) (NYSE: LPL, KRX: 034220) to financial institutions in a capital markets transaction. This transaction represents 13.0% of LPL’s issued share capital and reduces Philips’ holding to 19.9%.

 

The transaction, which closed today, will provide Philips with net proceeds of approximately EUR 1.55 billion, and is expected to result in a non-taxable gain of approximately EUR 500 million in the fourth quarter of 2007. As part of the transaction, Philips may decide to sell additional shares to the same financial institutions later today to meet additional demand, if any. 

 

This transaction is in line with Philips’ communicated strategy to further reduce its holding in LPL in a structured and responsible manner, as the company has already done with other financial holdings.

For further information, please contact:

Arent Jan Hesselink

Philips Corporate Communications
Tel:  +31 20 59 77415   
Email:  arentjan.hesselink@philips.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 125,800 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.

 

The offer and sale  of securities referred to in this press release have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Act”), or under any other applicable securities laws.  They may not be sold, transferred, offered for sale, pledged, or hypothecated or otherwise disposed of unless registered under the Act or pursuant to an exemption from the registration requirements of the Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.