Royal Philips Electronics has made a $25 million equity investment for 51 percent majority interest in Ishoni Networks

February 13, 2002

1 Min Read

Royal Philips Electronics (NYSE:PHG, AEX:PHI), today announced that it has made a $25 million equity investment for 51 percent majority interest in Ishoni Networks, a silicon and software solution provider for broadband Customer Premise Equipment (CPE) and devices. Ishoni is based in Santa Clara, California. The Philips investment includes agreements for joint product development, joint sales and marketing activities, and manufacturing. It is expected to result in an accelerated effort to expand a portfolio of silicon system solutions for broadband CPE with advanced networking, voice and security functionality for “last mile access” and in-home networking. “Ishoni has developed industry leading Voice over Broadband and secure gateway solutions for home or office, and we are very pleased to expand the market potential through our joint development, manufacturing and marketing efforts,” said Phil Pollok, senior vice president, Philips Semiconductors. “Combining Ishoni voice and data products with Philips extensive capabilities in cable systems, wireless and wired connectivity will enable a new generation of powerful, integrated solutions for cable and DSL. While the investment will be slightly dilutive to earnings in the first year, it is strategic to filling a gap in our expanding portfolio of connectivity and security offerings.” Royal Philips Electronics NV Ishoni Networks Inc.

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