Philips places EUR 2.0 billion Eurobond

Amsterdam, The Netherlands, 25 July 2001 � Royal Philips Electronics

of the Netherlands (AEX: PHI, NYSE: PHG) today placed a Eurobond issue

("the Notes") for a total amount of EUR 2.0 billion.

Philips has placed a floating rate and a fixed rate tranche both

maturing in July 2004. The floating rate Notes are being offered in

the aggregate principal amount of EUR 1 billion, have a coupon of

6-month Euribor plus 0.625% and an issue price of 99.8467%. The

floating rate Notes are redeemable in whole at the option of Philips

in August 2003 at the price of 100.35%.

The fixed rate Notes are being offered in the aggregate principal

amount of EUR 1.0 billion, have a coupon of 5.125% and an issue price

of 99.756% resulting in a yield of 5.2175%.

The Notes will be listed at the Official Segment of Euronext Amsterdam

N.V.'s stock market.

The proceeds will be used for general corporate purposes.

For further information:

André Manning, Philips Corporate Communications, tel: +31 20 59

77 199