ATLANTA, GA. – July 16, 2007 -- Servigistics, the leading strategic service management solution provider, announced today that Philips Consumer Electronics, part of Royal Philips Electronics (NYSE: PHG), has successfully implemented Servigistics’ Strategic Service Management (SSM) solution in the APMEA region – on time and within budget .

Amongst the criteria for Philips’ selection was Servigistics’ proven track record in improving Initial Load and End-Of-Life planning, which will help Philips achieve reductions in obsolescence and in overstocking amongst short lifecycle parts. Philips needed a solution that would deliver a central view of all service parts throughout its regions, and chose Servigistics because of its functional fit and proven ability to deliver results quickly.

“With such a diverse range of consumer products, we required a solution that not only managed inventory on a tactical level, but also provided us with the foundation to deliver Service as a strategic initiative,” said Gerard van Dobben, Senior VP Global Customer Service. “Servigistics was chosen for its experience in global implementations and leadership in the field of service management.”

Servigistics partnered with specialist consultancy Barkawi Management Consultants to provide project planning and business expertise for the implementation in Shanghai. “The Servigistics/Barkawi team excelled in all areas to achieve a demanding go-live target date,” said van Dobben.

“We are honoured to be working with this prestigious brand,” said Kevin Tingey, Servigistics’ General Manager, EMEA. “Maintaining its position as an industry leader requires Philips CE to consistently meet the demands of an increasingly disparate global customer base.  The Servigistics solution will enable Philips Consumer Electronics to efficiently achieve its goals and drive even greater profitability from its already exceptional service levels.” # # #

About Servigistics

Servigistics is the leading strategic service management solution provider, offering service parts management, workforce management and pricing solutions that operate together on a single data model to enable companies to transform their global service operations by dramatically increasing profitability, cash flow, and customer loyalty. Servigistics solutions have been deployed and proven globally by a highly referenceable client base of market-leading companies across industries in high technology, aerospace, automotive, telecommunications, medical equipment, consumer durables, and heavy industrial. Servigistics is a privately-held company headquartered in Atlanta, with regional headquarters in Bristol and Tokyo and sales and service professionals around the world.

For further information visit www.servigistics.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 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, 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.

About Barkawi Management Consultants:

Barkawi Management Consultants is an international management consultancy with proven expertise in Logistics and After-sales Services. Barkawi Management Consultants supports global aftermarket organisations in developing service strategies and achieving operational excellence. Barkawi Management Consultants focuses on technology-driven industries such as Aerospace, High-tech, Industrial Machinery, Telecommunications and Transportation Systems. Customers include large multi-nationals with capital-intensive and logistically complex business models, such as DaimlerChrysler, Deutsche Bahn, Deutsche Telekom, Electrolux, Fujitsu Siemens Computers, Linde, Lufthansa, Nokia, Philips, Siemens, Sony Ericsson and Vodafone.

Further information about Barkawi Management Consultants, as well as pictorial material can be found at: www.barkawi.com