Jul 12, 2001 Philips Electronics of the Netherlands (AEX: PHI, NYSE: PHG) and AOL
Time Warner (NYSE: AOL), today announced a strategic alliance that
will combine AOL Time Warner's strengths in interactive marketing and
media and Philips' strengths in consumer electronics and technology.
This global partnership will bring Philips and AOL Time Warner to new
consumers around the world. Under the multi-year agreement, the two
companies will focus their collaboration on a series of online, on-air
and print marketing initiatives to help increase both the reach and
scope of their brands worldwide.
Interactive Marketing & Integrated Media and Advertising
AOL Time Warner and Philips Consumer Electronics and Domestic
Appliances & Personal Care divisions will co-develop new online
marketing destinations that will showcase products and services from
Philips, and include certain related content from AOL Time Warner
online properties. These platforms, which will include functionality
like decision guides to improve consumers' shopping experiences, will
be designed to highlight both companies' retail partners and enable
consumers to easily purchase Philips products. These new areas will be
available within the popular Shop@ destinations across several America
Online brands. They will also be promoted across AOL Time Warner's
various online media properties, both in the U.S. and around the
world.
In addition, Philips will be promoted across several of AOL Time
Warner's wide range of print and broadcast properties. These include
Turner Broadcast networks such as CNN and Time Inc. magazines such as
TIME and FORTUNE.
Philips will also make available its distribution strength and global
reach to help AOL acquire new members.
Exploration of Next-Generation Technologies
Furthering their previous relationship, Philips and AOL Time Warner
have also agreed to pursue a strategic supply agreement. The two
companies will also continue to work together and explore several
initiatives to determine the next generation of set-top boxes and
potential opportunities for online interactive services integrated
with television.
Bob Pittman, Co-COO of AOL Time Warner, said: "This relationship truly
highlights the value that only AOL Time Warner can deliver to its
strategic partners. By expanding our relationship with Philips to
include a number of the marketing and commerce assets that we now have
in our portfolio, we're able to accomplish a number of important
goals. First, we will offer consumers more innovative products from
Philips to choose from to help make their lives easier and more
convenient. Second, we will help Philips drive growth of its business
through increased brand awareness. And finally, we will introduce more
consumers around the world to our online features and services."
Gerard Kleisterlee, Chief Executive Officer of Royal Philips
Electronics, said: "This alliance fits perfectly with our ambition to
build a high growth technology company and is powerful for both
Philips and AOL Time Warner. By partnering to further develop several
of Philips' key technologies, and marketing them with and through AOL
Time Warner's brands, we can accelerate and broaden the pipeline of
new products and services to consumers to help make their lives easier
and more convenient. The alliance will extend Philips' reach and brand
awareness in the U.S., and AOL Time Warner will have greater access in
Philips' backyard - Europe. It is a win-win for both companies, truly
exciting and it will help to position Philips as an even stronger
player in tomorrow's digitally connected world of the Internet."
For further information:
Philips Corporate Communications: Andre Manning, tel. +31-20-5977199
AOL Time Warner David Theis, tel +1-703- 265-1491
About AOL Time Warner
AOL Time Warner (NYSE: AOL) is the world's first Internet-powered
media and communications company, whose industry-leading businesses
include interactive services, cable systems, publishing, music,
networks and filmed entertainment.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world's
biggest electronics companies and Europe's largest, with sales of
$34.9 billion (EUR 37.9 billion) in 2000. It is a global leader in
color television sets, lighting, electric shavers, color picture tubes
for televisions and monitors, and one-chip TV products. Its 219,400
employees in more than 60 countries are active in the areas of
lighting, consumer electronics, domestic appliances, components,
semiconductors, and medical systems. Philips is quoted on the NYSE
(symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges.
News from Philips is located at http://www.news.philips.com
'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 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.
