Philips and Microsoft to Launch Cordless, Internet Telephone for Windows Live Messenger Users

LAS VEGAS — Jan. 4, 2006 — Royal Philips Electronics (NYSE: PHG, AEX: PHI) and Microsoft Corp. (Nasdaq: MSFT) are teaming up to introduce the new VOIP433 Dual Phone (incorporating Internet and PSTN phone capabilities), which will provide consumers with a simpler and more unified communications solution. The VOIP433 serves as both a traditional telephone and a VoIP (Voice Over Internet Protocol) phone, allowing users to make and receive Internet calls to their online contacts through the upcoming Microsoft® Windows Live™ Messenger service, the successor of MSN® Messenger, which boasts more than 200 million active accounts worldwide.

Designed for Microsoft and showcased at the 2006 International Consumer Electronics Show (CES), the VOIP 433 Dual Phone enables consumers to easily call and connect to anyone listed on their Windows Live Messenger contact list with the simple click of a button. Customers will have three calling choices: free PC-to-PC calling through Windows Live Messenger, allowing users to place and receive voice calls; the MCI Web Calling service, offering Windows Live Messenger users a low-cost PC-to-phone outbound calling option; and traditional landline phone service.

The VOIP433 model’s advanced color screen takes the consumer experience to the next level by allowing users to see their friends’ online presence, displaying dynamic Windows Live Messenger icons, and delivering notification options on the cordless handset, even when users are away from their PC.

“By teaming up with Microsoft, we are demonstrating our commitment to bringing the benefits of VoIP to consumers,” said Nick Dosanjh, vice president and general manager of Philips Home Communication. “IP-based telephony is growing in popularity among consumers making use of their home broadband connections for a whole new range of communications options and services. Our new cordless phone will allow consumers the ability to simplify their communications experiences and reduce their costs while providing them with the convenience of having a phone with live messaging, without sitting in front of their PC.”

The VOIP433 represents an important development in Philips®’ ‘Connected Planet’ vision, adding telecommunications to entertainment, thus providing consumers with greater freedom to benefit from wireless and Internet-enabled technology wherever they are at home.

“The world of Web-based voice communications is exploding — to consumers’ great benefit. We’re excited to offer the simplicity and freedom of peer-to-peer voice communications by combining Philips’ cordless phone technology with Windows Live Messenger,” said Blake Irving, corporate vice president of the MSN Communication Services and Member Platform group at Microsoft. “The VOIP433 handset with Windows Live Messenger delivers on our vision to extend integrated Windows Live communications beyond the PC. We’re very proud of this product and service and are thrilled to be working with such a strong partner.”

The new VOIP433 Dual Phone is portable and has a simple plug and play feature that provides customers with a worry-free broadband installation experience. Featuring cost-free installation, consumers simply plug the base station into the land line and the USB plug of a PC; the handset is then automatically ready to operate with Windows Live Messenger 8.0. The VOIP433 operates on Digitally Enhanced Cordless Telephone (DECT™) technology, providing consumers with crystal clear sound by reducing noise interference.

The VOIP433 will debut in Europe, Asia Pacific (Australia, Hong Kong, New Zealand, Singapore) and Latin America (Argentina, Brazil) and be available for purchase in the spring of 2006.

About MSN and Windows Live

MSN attracts more than 440 million unique users worldwide per month. With localized versions available globally in 42 markets and 21 languages, MSN is a world leader in delivering compelling programmed content experiences to consumers and online advertising opportunities to businesses worldwide. Windows Live, a new set of personal Internet services and software, is designed to bring together in one place all the relationships, information and interests people care about most, with enhanced safety and security features across their PC, devices and the Web. MSN and Windows Live will be offered alongside each other as complementary services. Some Windows Live services entered an early beta phase on Nov. 1, 2005; these and future beta updates can be found at MSN is located on the Web at MSN worldwide sites are located at

About Philips

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 $37.66 Billion (EUR 30.3 billion) in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,100 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

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft, Windows Live and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

DECT™ is a trademark of ETSI.

MCI® is a registered trademark of MCI Communications Corporation.

Philips® is a registered trademark and Connected Planet™ is a trademark of Koninklijke Philips Electronics NV.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at

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