CLARIFICATION

Amsterdam, The Netherlands, October 16, 2001 - During the conference call for the financial press earlier today, Mr. Jan Hommen, Chief Financial Officer of Royal Philips Electronics, confirmed that the net loss for Philips for the full year 2001, before charges, is estimated at approximately EUR 600 million. This number can be derived from the report on the performance of the Philips Group in the third quarter 2001, as follows:

    Net income, excluding charges, for the first nine months 2001: a loss of EUR 387 million Anticipated net loss, excluding charges, fourth quarter 2001: EUR 200-250 million

During the conference call, in the context of specific questions from journalists, an amount of EUR 400 million was also referred to. This, however, does not include the estimated result for the fourth quarter relating to unconsolidated companies.

Philips is providing this clarification in order to avoid any misunderstanding regarding the Company's expected full year results 2001.

Any questions? Please contact

Ben Geerts


Philips Corporate Communications
Tel +31-20 59 77 215
E-mail ben.geerts@philips.com


Sobre a Royal Philips Electronics

A Royal Philips Electronics da Holanda (NYSE: PHG, AEX: PHI) é líder global em saúde, iluminação e produtos de consumo e estilo de vida, oferecendo inovações, serviços e soluções por meio da sua promessa de marca "Sense and Simplicity". Com sede na Holanda, a Philips possui aproximadamente 123.800 funcionários em mais de 60 países. Com um volume de vendas de 27 bilhões de euros em 2007, a empresa é líder de mercado em equipamento para diagnóstico médico por imagem e monitoramento de pacientes, soluções em iluminação com base na eficiência enérgica, produtos de cuidados pessoais e para a casa, bem como eletrônicos de consumo. Mais informações sobre a Philips podem ser encontradas no site www.philips.com/newscenter.


'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995

This document contains 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. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, the levels of marketing and promotional expenditures by Philips and its competitors, raw materials and employee costs, changes in future exchange and interest rates (in particular, changes in the euro and the US dollar can materially effect results), tax rates and future business combinations, acquisitions or dispositions and the rate of technical changes. Market share estimates contained in this report are based on outside sources such as specialized research institutes, industry and dealer panels, etc. in combination with management estimates.