Philips, NextVision and Sky Brazil Deliver Hybrid Satellite TV and IP Video-on-Demand; Philips Nexperia STB810 and NextVision Software to Expand Sky Brazil's Portfolio of TV Services

Royal Philips Electronics (NYSE:PHG)(AEX:PHI) todayannounced that its Nexperia STB810 set-top box (STB) semiconductorsolution, in combination with software from NextVision, has beenselected to power Sky Brazil's first offering of dual digitalbroadcast/Internet protocol(IP) TV services. By delivering bothsatellite television and IP video-on-demand in a highly integratedhybrid design, Sky Brazil will be able to offer consumers a simple,unified experience through a single set-top box. With more than970,000 subscribers, Sky Brazil is the number one provider ofsatellite television in Brazil.

Analyst firm In-Stat has estimated that the market for IP/DSLset-top boxes will exceed seven million units and more than $700million in annual revenue in 2008, reflecting increased demand foradvanced applications and video delivered over IP.

"With a rapidly growing subscriber base and increasing demand inBrazil for advanced features like IP video to compliment our satelliteTV service, we have seized an opportunity to deliver a truly simpleand exciting experience of both technologies to our customers," saidRicardo Miranda, president, Sky Brazil. "Philips and NextVisiondelivered a flexible platform that will enable us to offer theBrazilian consumers access to all of the content they want both nowand in the future in a complete, cost effective set-top box."

"While the availability and growth of IP video is an importantdevelopment for the industry, the key innovation in the set-top boxspace is enabling consumers to experience all of the content they wantto enjoy, whether it's delivered over the air, via satellite, cable orIP, together through a single interface," said Mark Samuel, generalmanager, Telco & Operator STB, Philips Semiconductors.

"Access to content regardless of its source is paramount, and theSTB810 solution we've developed with NextVision for Sky Brazil is along term platform that can support all the types of content consumerswant in the highest quality possible," explained Samuel.

NextVision's Regina software platform is written in the highlyportable .NET framework for greater flexibility, with rapid, easycustomization and branding by service providers. Other key advantagesof the NextVision Regina platform include: both a TV and a PCinterface; a Web browser interface for establishing customer accountsand user authentication; subscriber-level transaction capturing;support for streaming or downloadable video-on-demand; IP basedcontent protection with encryption to eliminate the need forConditional Access systems; and full DVR functionality.

"In delivering advanced television services, it is important toensure that the user experience of both new and existing content isentirely indistinguishable," said Marcos Galassi, president,NextVision. "As more and more digital and interactive features areintegrated into the television, the ability of software to tie thesecapabilities together in a consistent, intuitive way for consumers isintegral to driving actual adoption of new services. In this climate,the close collaboration between Philips Semiconductors and NextVisionhas been instrumental."

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 EUR 30.4 billion in 2005. With activities inthe three interlocking domains of healthcare, lifestyle and technologyand 161,500 employees in more than 60 countries, it has marketleadership 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.

About NextVision

NextVision develops and markets server and set top box softwareand hardware for 'hybrid' (broadcast TV + IP VOD) implementations aswell as IP TV applications. NexTVision is a complete software solutionfor creating, managing and delivering media services over broadband.NexTVision products support MPEG 2. MPEG 4 H.264 and VC 1. NextVision,privately held, is based in Sao Paulo, Brazil with an office inNorthern California, USA. For additional information please contactRobert Pincus at rpincus@nextvisiontv.com. +1.707.939.6658

Nexperia is a trademark of Koninklijke Philips Electronics N.V.