Philips announces completion of sale of 800 million TSMC shares via TSMC share repurchase program

Amsterdam, the Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) today announced it has completed the sale of 800 million common shares in Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (“TSMC”), valued at approximately USD 1.5 billion. The sale was carried out as part of a TSMC share repurchase program, which was initiated by TSMC on November 14, 2007 and completed today.

 

This TSMC share repurchase program is the third step in a multi-phased plan to facilitate an orderly exit by Philips from its shareholding in TSMC, as announced by Philips and TSMC on March 9, 2007. This plan aims to reduce Philips’ holding in TSMC to zero before the end of 2010.

 

The sale of these shares, closed today, will provide Philips with proceeds of approximately EUR 980 million, and will result in a non-taxable net gain of approximately EUR 530 million in Philips’ financial results for the fourth quarter of 2007. Following completion of this sale, Philips holds approximately 1.3 billion TSMC shares, representing approximately 5.0 percent of TSMC’s issued shares. This total stake is worth approximately EUR 1.7 billion at current market prices for TSMC shares.

For more information, please contact:

Joon Knapen

Philips Corporate Communications
Tel:  +31 20 59 77477   
Email:  joon.knapen@philips.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 128,100 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, as well as lifestyle solutions for personal wellbeing. News from Philips is located at www.philips.com/newscenter.


Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.