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Philips, Time Inc. Strike Unique Ad Agreement in Which Philips ''Simplifies'' Navigating Editorial Content
[April 21, 2006]

Philips, Time Inc. Strike Unique Ad Agreement in Which Philips ''Simplifies'' Navigating Editorial Content

NEW YORK --(Business Wire)-- April 21, 2006 -- Beginning with May 1 issue of Time magazine, Philips buys up and eliminates ads between magazine cover and table of contents in various Time Inc. publications

Continuing its theme of "simplifying" media experiences, Philips Electronics will purchase all the advertising inventory between the cover and table of contents of four Time Inc. publications. When readers open the magazines, the first thing they see is the table of contents. By eliminating the complexity of the initial advertising space, consumers can simply identify and find the stories they want to read.

The campaign kicks off with the May 1 issue of Time Magazine. In addition to Time, Philips is pursuing this innovative strategy with three other Time Inc. publications: People (May 22 issue); Fortune (May 29 issue); and Business 2.0 (May 1 issue).

"At Philips, simplicity means not letting complexity stand in the way. We translate this to the advertising media by simplifying the experience for the consumer," said Andrea Ragnetti, Chief Marketing Officer of Royal Philips Electronics and Chief Executive Officer Philips Domestic Appliances and Personal Care (DAP). "In television terms, this means buying all the advertising inventory and returning this time to the show, as we did with CBS's "60 Minutes" program. In print terms, we found Time Inc. an eager partner on our journey to simplicity, and we believe the readers will relish the experience of finding their favorite section of the publication faster and easier."

When readers turn the magazine cover, they will find only one advertising foldout about Philips "Sense & Simplicity." On the opposite side will be the table of contents.

As for the ad itself, it reads: "Simplicity means not letting complexity stand in your way. It starts with moving the table of contents to the first page. It continues underneath this flap and on the last page, where you'll see innovative product concepts that will change the way you live. It's our vision of the future, one where complexity doesn't stand in your way."

The images in the ad are of product prototypes that Philips is exhibiting in its Simplicity Event touring globally. The exhibit highlights the achievements of the company in implementing 'sense and simplicity' throughout all markets and across its entire healthcare, lifestyle and technology portfolio.

Through its "Sense & Simplicity" branding campaign, Philips is committed to delivering applications and solutions that are easy to experience, advanced and designed around users.

Philips began employing this strategy in October 2005 when it was the sole sponsor of the CBS newsmagazine "60 Minutes." According to that arrangement, Philips purchased all of the commercial time typically allotted to "60 Minutes," but only used half the time for ads. By reducing the commercials, Philips could actually help the show extend the length of the stories, thus simplifying and enhancing the viewing experience for the audience.

Philips attempted to bring the campaign to the big screen, as well, in March.

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 $37.7 billion (EUR 30.4 billion) in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,498 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

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