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    Philips Lighting and TAC announce European commercial cooperation

    Rueil Malmaison October 18th, 2005 - Royal Philips Electronics (AEX: PHI, NYSE: PHG) and TAC, a company of Schneider Electric, today announced that they are to cooperate commercially in Europe. This cooperation will be mutually beneficial, allowing customers to experience complete open and integrated building automation solutions, including advanced lighting.

    Both companies have outstanding complementary strengths and use the same interoperable communication standard that they develop in their active participation in the LONMARK®  International Association. Through this commercial cooperation, Philips and TAC are seeking to provide property owners and end-users with competitive, innovative and efficient solutions that add value to their respective businesses.

    Rene van Schooten, CEO of Philips Luminaires, stated: “We are excited to extend our luminaires position by teaming up with TAC, a world leader in building automation systems. Together with TAC, Philips will be able to offer technologically advanced, user-friendly solutions for greater comfort and energy saving.”

    Arne Frank, CEO of TAC, commented: “The cooperation with Philips Lighting enables TAC to offer even more comprehensive and complete building solutions and services, now including advanced lighting solutions, thus bringing increased value to our customers. Both companies share the same vision of Open Integrated Interoperable Systems, and we are very excited about the potential that the agreement with Philips brings.”

    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 EUR 30.3 billion in 2004. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,709 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 www.philips.com/newscenter

    About TAC and Schneider Electric

    TAC is a leading provider of building automation solutions based on Open Integrated Systems for Building IT. TAC's mission is to provide added value through building environment services for indoor climate, security and use of energy, delivered with advanced technology to end users and property owners throughout the world. With over 80 years of experience in the HVAC, building automation and security arenas, TAC has over 3,700 employees worldwide with partners and branches in 75 countries. TAC's parent company, Schneider Electric, is the world's leading specialist in power, control and building automation, with 85,000 employees worldwide and operations in 130 countries. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric manufactures and markets a comprehensive range of products and services for the residential, buildings, industry, energy and infrastructure markets.

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