HILVERSUM, The Netherlands -- With the signing of a new distribution agreement, KPN Entercom Solutions and Philips Business Communications (PBC), a business unit of Royal Philips Electronics (AEX: PHI, NYSE:PHG), have renewed their partnership in the area of business communications in The Netherlands. The contract involves distribution and support of Philips’ SOPHO hybrid and IP communication systems and solutions by KPN for a further period of 3 years.

The agreement confirms KPN’s ambition to serve the Dutch market with advanced IP based converged communication solutions that merge voice, data, fixed and mobile communications. It further underlines KPN’s confidence in the recently announced joint venture between Philips and NEC, NEC Philips Unified Solutions, which will include PBC’s current activities. Philips and NEC have been cooperating closely since 2003 in a strategic partnership to jointly develop and deploy IP technology in enterprise communications. The recently announced joint venture offers unique opportunities to further develop powerful market propositions.

“KPN and Philips have been cooperating over many years and have achieved a prime position in the Dutch enterprise communications market. The Philips portfolio perfectly suits our customers’ needs and is an essential part of our total offer”, says Bas Burger, CEO of KPN EnterCom Solutions. “We have full faith in the new NEC Philips Unified Solutions venture supplying us with an even richer portfolio of solutions and services in the years to come. Based on this we will be able to continue offering our customers innovative solutions, meeting the needs of their changing requirements in ICT. This will enable our customers to further improve their business processes and control and/or reduce their ICT costs. At the same time IP makes communications simpler, more efficient and more fun”, says Burger.

“We are delighted with KPN’s contract renewal and their confidence in our joint venture with NEC” says Ad Ketelaars, CEO of Philips Business Communications. “It confirms our good relation with KPN over past years and the excellent position we have achieved as a result in the Dutch market. The new contract is part of our strategy to further strengthen distribution channels supported by a complete Business Partner Program. In this scheme KPN’s status of Advanced Solution Partner is the highest achievable”, concludes Ketelaars.

KPN Telecom NV

Royal Philips Electronics N.V.