Philips Announces Digi-Key Corporation to Distribute Complete Semiconductor Portfolio

Digi-Key specializes in quick turn around and production quantity orders

EINDHOVEN, The Netherlands, DE - August 29, 2005

Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced a world wide franchise agreement allowing Digi-Key Corporation to distribute Philips' full portfolio of semiconductors. While Philips continues to work closely with its established global distribution partners, Digi-Key specializes in assisting the engineering community with component sourcing and getting to market quickly.

Digi-Key's approach mirrors Philips' commitment to simplicity and customer service excellence. Digi-Key's speed and efficiency in the order fulfillment process enables 99% of all orders placed to be shipped the same day they are ordered. The Digi-Key web site serves as a link to the world wide electronics industry and provides 24-hour access to a broad-based, multi-million dollar product inventory.

"Philips has a strong line of semiconductors for a wide range of applications, and is a great addition to the Digi-Key offering," said Mark Larson, president, Digi-Key Corporation. "We look forward to providing our customers with semiconductor products from Philips for both their design and production needs."

"Digi-Key provides customers with extremely fast turn-around capabilities that can give them the edge in the market," said Bill Galione, vice president of sales and marketing, Americas, Philips Semiconductors. "Digi-Key's also excels at delivering extremely small orders that other organizations might have difficulty with, and this makes it easier for the engineering community to obtain prototype quantities that could help to speed the development cycle of new products."

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's largest, with sales of EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 160,900 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.semiconductors.philips.com.

About Digi-Key Corporation

Digi-Key Corporation, based in Thief River Falls, Minn., is a global, full-service provider of both prototype/design and production quantities of electronic components, offering more than three million products from over 650 quality name-brand manufacturers. With over one million products in stock and an impressive selection of online resources, Digi-Key is committed to stocking the broadest range of electronic components in the industry and providing the best service possible to its customers. Additional information and access to Digi-Key's broad product offering is available on the Digi-Key website.

Media Contact: Steven G. Tsukichi, VP/Marketing, Digi-Key Corporation