Philips Semiconductors Joins Flarion Technologies' flash-OFDM Alliance Program for Mobile Data Services

Philips Semiconductors is Key ASIC Supplier for Industry's First Mass-Market Mobile Broadband Devices

SAN JOSE, Calif.--(BUSINESS WIRE)--January 15, 2002-- Philips Semiconductors, a division of Royal Philips Electronics (NYSE:PHG - news; AEX:PHI), today announced that it has joined together with leading wireless infrastructure companies to support Flarion Technologies flash-OFDM(TM) Alliance program. As the key Application-Specific Integrated Circuit (ASIC) supplier for the Flarion flash-OFDM technology, Philips Semiconductors will design and manufacture ASICs that support sustained mobile data rates of up to 3Mbps. Laptop computers, PDAs and smart telephones incorporating these low-power ASICs will bring true broadband mobile services to the mass market.

Leading wireless infrastructure companies who have joined the Flarion flash-OFDM Alliance program include Cisco Systems, Certicom, Compaq, Decibel Products, Enfora, Flarion Technologies, Funk Software, GTRAN Wireless, Invertix, LCC International Inc., PacketVideo, Pentair Electronic Packaging and Powerwave Technologies.

Philips Semiconductors' ASICs will help drive down power requirements, size and cost for end-user devices supporting Flarion flash-OFDM mobile communications. These ASICs, which handle transmit-signal and receive-signal processing, will be available in early 2002, with availability of flash-OFDM mobile PC cards in the fourth quarter of 2002.

"Philips Semiconductors' participation in Flarion's flash-OFDM Alliance brings a significant advantage," said Robert Suffern, vice president of engineering, Flarion Technologies. "With the company's leadership in semiconductors for wireless connectivity, it is an ideal partner to help bring flash-OFDM to market, enabling the desktop experience in mobile environments."

"As the key ASIC supplier, the collaboration with Flarion presents a significant growth opportunity for Philips Semiconductors' wireless connectivity business," said Peter Baumgartner, senior vice president, Global Market Segment Communications, Philips Semiconductors. "Flarion's flash-OFDM technology shows great promise to `unwire' the Internet and mobilize data applications for the enterprise and mass-market consumers. We are committed to supporting this innovative technology."

The alliance of companies will focus on promoting flash-OFDM for mobile broadband services. Mobile operators will now be able to offer existing rich, multimedia content to customers. With flash-OFDM, users experience an `always-on' broadband desktop experience in a fully mobile Wide Area Network (WAN), just like they do today on their corporate LAN or at home with a broadband connection, without any limitations to content, security or applications. The Flarion Alliance program members are currently supporting market trials of the flash-OFDM mobile broadband system.

Philips Semiconductors' collaboration with Flarion expands the company's broad portfolio of wireless communications solutions. By cultivating key competencies in all of the wireless applications, including Bluetooth(TM) wireless technology, ZigBee, 802.11 and Digital Enhanced Cordless Telecommunications (DECT), Philips Semiconductors is able to provide total solutions for wireless applications, together with the system-level know-how needed to provide optimal hardware and software solutions to customers. Philips Semiconductors already delivers chipsets for both IEEE 802.11b-enabled and Bluetooth-enabled devices.

For more information on the flash-OFDM Alliance program, please go to www.flarion.com/alliance

About Philips Semiconductors

Philips Semiconductors, with revenues of $6.3 billion in 2000, is a world leader in silicon systems and standard products for wireless communications, digital entertainment, computing and automotive applications. The organization designs, develops and manufactures silicon solutions based on its innovative Nexperia(TM) architectures to create living technology for its customers creating products, service providers using the products, and consumers enjoying the resulting products and services. For more information: www.semiconductors.philips.com.

Note to Editors: Flarion and flash-OFDM and trademarks are the property of Flarion Technologies. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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