AMSTERDAM -- Royal Philips Electronics (AEX:PHI; NYSE:PHG) today announced a cooperation to jointly develop the market for broadband, wireless home networks, connected devices, and value-added broadband-connected entertainment and communication services in France.

The aim is to offer consumers the combination of Philips products such as home networks and connected entertainment and communication technologies along with France Telecom's broadband service and installation. Philips and France Telecom together will develop and market fixed telecommunications as well as multimedia products that will improve people's daily life at their future digital home. The companies have also agreed to share research on future product roadmaps in order to collaborate on new services, product and content offerings to consumers.

Gottfried Dutine, CEO Philips Consumer Electronics and member of the Board of Management said: "Our cooperation with France Telecom is another step to align Philips' broadband ready connectivity and entertainment devices with the services and market channel expertise of broadband providers. Additional to our earlier announced European telco partners we will be able to target a growing base of millions of consumers in some of the largest European markets with a compelling out of the box broadband entertainment experience that will meet their needs and expectations."

The co-operation between Philips and France Telecom will focus on commercializing a full range of broadband, multimedia and entertainment products and services for the French market. Together they will promote and develop the connected planet market in France, meaning broadband, (wireless) home networks, connected devices and value-added broadband-connected entertainment and communication services. Jointly they will explore the opportunities for Philips to become a references supplier to France Telecom of value-added wireless networking products.

Additionally, Philips and France Telecom jointly will explore new trends and technologies and jointly prepare business plans and roadmaps for more closely integrating services platforms and content/value added services to drive further adaptation and wider use of user friendly digital home applications; this could include entertainment services built around the Philips' Streamium that will allow people to listen to thousands of music recordings on demand at home and video chatting possibilities.

Royal Philips Electronics N.V.

France Telecom SA