Re Partnership

365 Corporation PLC
7 March 2002

7 March 2002



365 signs significant partnership with Philips for hosting speech recognition
applications in the UK

365 Corporation, one of Europe's leading Speech Application Service Providers,
has become Philips' partner of choice in the UK, for providing hosted Advanced
Speech Recognition (ASR) applications and services for Philips Speech
Processing's customers. The new partnership underlines Philips' commitment to
365 and will lead to 365 owning one of the biggest interactive speech hosting
platforms in Europe.

During 2002, 365 expects to increase its call termination platform to 8,500
telephone lines, 5000 of which will utilise Philips' SpeechPearlO speech
recognition software. With 8,500 lines, 365 will be capable of handling
approximately 500,000 calls per hour, thus dramatically increasing the company's
ability to service major customers' requirements.

Philips' have the largest portfolio of languages and accents in the speech
recognition market, and 365 will be implementing all available European
languages from Philips, so that multi-lingual applications can be hosted on
behalf of pan-European brands. This will reinforce 365's position as the clear
European market leader of hosted IVR and ASR applications.

A further aspect of the partnership is that Philips and 365 will jointly market
their ASR services and will co-exhibit at forthcoming exhibitions such as Voice
World in London in April.  The applications available through this hosting
partnership in the UK are extensive.  These range from classic voice portal
functionality for informational and personal services through to bespoke
developments aimed at tailoring a speech driven service to the exact and in many
cases unique requirements of the end user or specialist industry.

Since June 2001, 365 have secured contracts to provide innovative speech
solutions to blue chip clients including Granada, Static, EMAP and Virgin
Mobile.

Nik Philpot, Chief Operating Officer of 365 Corporation, said:  '365 has rapidly
positioned itself to exploit the growing demand for speech solutions across
Europe.  Becoming Philips partner of choice in the UK, is a major boost for 365
and provides the platform for becoming a major European player in the speech
market.'

Comments Ruud van Vessem, sales director Europe of Phillips Speech Processing '
Having 365 as a partner in speech applications means that we can benefit from
mutual access to each other's sales channels. In addition, our existing
customers will have the advantage of utilising the most advanced speech
technology at minimal risk. We strongly believe that 365 has the best
combination of skills and expertise available in the UK and we are delighted to
be partnering with them in the rapidly expanding market of hosted services.'



                                    - ends -



Notes to Editors



About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest
electronics companies and Europe's largest, with sales of EUR 37.9 billion in
2000. It is a global leader in colour television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products. Its 192,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances, components,
semiconductors, and medical systems. Philips is quoted on the NYSE (symbol:
PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips
is located at www.news.philips.com



About Philips Speech Processing

Philips Speech Processing, a business unit of Royal Philips Electronics, is a
pioneer and global leader in speech recognition, natural dialogue and language
understanding technologies, with more than 40 years experience in the
development and marketing of speech products. Philips offers a broad portfolio
of speech technology solutions to the telecommunications industry.  As a
developer and provider of speech technologies in multiple languages, Philips has
the largest installed base of speech recognition and natural language
understanding systems in Europe, and is a large and growing provider of speech
technology in the Americas and other regions of the world. Installations include
directory assistance and call center services automation, voice portals,
telephony and Internet applications. Visit www.speech.philips.com/telephony for
additional information.



About 365 corporation plc

365 Corporation plc (365) is a speech application service provider. It is a
European leader in the provision of hosted interactive voice applications and
speech recognition services.  365 owns one of Europe's largest voice-hosting
platforms, forecast to be in excess of 8,000 lines by the end of 2002, with a
capacity of handling over 500,000 calls per hour.



The company delivers large-scale, innovative speech solutions to a client list
that includes Granada Television, Chrysalis, Cartoon Network, Sky, EMAP, Virgin
Mobile, and the Royal National Institute of the Blind.



In July 2001, 365 launched Europe's first comprehensive voice portal, Eckoh
which can be accessed from any standard telephone - mobile or landline - by
dialling one number.  Eckoh allows the user to send and retrieve emails, go
shopping, listen to the latest news, sport and entertainment, set up conference
calls, check and create diary appointments, quickly connect to friends, family
and colleagues - all driven by the power of his or her voice.  365 syndicated
Eckoh to Virgin Mobile who launched their service in December 2001.



365 have a partnership with Philips Speech Processing through which it is the
preferred partner in the UK for hosting speech recognition applications on
behalf of Philips clients. 365 is capable of applying its technology to a broad
range of industries, and capable of providing pan-European access to
applications in multiple languages. Datamonitor estimates that the European
market for speech recognition applications will grow six-fold to £1.2 billion by
2006.





Contacts:

Kirsten Nevile                               Alexandra Gaede
365 Corporation plc                          Philips Speech Processing
08701 107116                                 ([phone] - 302
[e-mail]                              [e-mail]

Nik Philpot                                  Ben Atwell/Samantha Robins
365 Corporation plc                          Financial Dynamics
0870 110 7155                                0207 831 3113
[e-mail]                      [e-mail]




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