Philips receives EUR 500 million from redemption of LG Electronics shares

Amsterdam, the Netherlands, June 29, 2001 - Royal Philips Electronics

of the Netherlands (AEX: PHI, NYSE: PHG) announced today that upon the

request of LG Electronics, Philips has offered its 32 million

convertible redeemable preferred shares of LG Electronics for

redemption. Philips acquired these shares in December 2000.

The redemption price equals the original purchase price and amounts to

544 billion Korean Won (approximately EUR 500 million).

Philips Corporate Communications, Ben Geerts, tel. +31 (0)20-59 77

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