ITC Finds Infringement of Lumileds' Patent Rights and Expands Scope of Exclusion Order to Bar Importation of Epistar's OMA, MB, and GB LED Products

The United States International Trade Commission ("ITC") today
issued a Notice of Commission Decision stating that all of Epistar's
OMA, MB, and GB LED products infringe the patent rights of Philips
Lumileds. In addition, the ITC has determined that it will issue a
limited exclusion order prohibiting importation of those infringing
LEDs manufactured by or on behalf of Epistar, its affiliated
companies, parents, subsidiaries, licensees, contractors, or other
related business entities. The exclusion order will also prohibit
importation of packaged LEDs containing the infringing LEDs and boards
primarily consisting of arrays of such packaged LEDs. Further, the
Commission ordered that, during the upcoming period for Presidential
review of the Commission's decision, the amount of bond required to
permit even temporary importation will be in the amount of 100% of the
value of the LEDs or boards that are subject to the exclusion order.

The Commission's Notice expands its February 22, 2007
determination in which the Commission adopted portions of the January
8, 2007, ruling by Administrative Law Judge ("ALJ") Sidney Harris that
Epistar's MB I and MB II products infringe Philips Lumileds' United
States Patent No. 5,008,718 ("718 Patent"), that Philips Lumileds' 718
Patent, Patent No. 5,376,580; and Patent No. 5,502,316 are valid and
enforceable, and that Epistar's OMA, MB, and GB products are not
licensed under those patents. In recent weeks, the parties have
submitted briefs regarding whether Epistar's OMA I, OMA II, GB I, and
GB II products also infringe. Today's Commission decision vindicates
Philips Lumileds, which has asserted throughout this investigation
that all of Epistar's accused products infringe Philips Lumileds'
patent rights.

"I am satisfied with the ITC's ruling," said Michael Holt, Philips
Lumileds' CEO. "Philips Lumileds will continue to enforce its
intellectual property rights, and to lead the world in the development
of solid-state lighting technology."

In addition to the ITC investigation, Philips Lumileds also has a
pending action in U.S. District Court for the Northern District of
California in which Philips Lumileds asserts its patent rights against
Epistar's OMA, MB, and GB products, seeking both damages and an
injunction.

About Philips Lumileds Lighting Company

Philips Lumileds Lighting Company pioneered power LED technology
and is the world's leading provider of power LEDs for everyday
lighting applications. The company's recent records for light output,
efficacy and thermal management are direct results of the ongoing
commitment to advancing solid-state lighting technology and enabling
lighting solutions that are more environmentally friendly, help reduce
CO2 emissions and reduce the need for power plant expansion. Philips
Lumileds' LUXEON LEDs are enabling never before possible applications
in the automotive, camera flash, display, general lighting, and
signage markets. More information about the company's products and
technologies can be found at www.philipslumileds.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 124,300 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.