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Koninklijke Philips (PHPE)

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Thursday 26 July, 2001

Koninklijke Philips

Issue of Debt

Koninklijke Philips Electronics NV
25 July 2001


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:

Andre Manning, Philips Corporate Communications, tel: +31 20 59 77 199

The Notes have not and will not be registered under the U.S. Securities Act of
1933 (the 'Act') and may not be offered or sold in the United States absent
registration under the Act or an applicable exemption from the Act's
registration requirements.

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 color television sets, lighting, electric
shavers, color picture tubes for televisions and monitors, and one-chip TV
products. Its 212,390 employees in more than 60 countries arc 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

'Safe Harbor' Statement under the Private Securities Litigation Reform Act of
1995.

This document contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Philips and certain
of the plans and objectives of Philips with respect to those items. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to, levels of consumer
and business spending in major economics, changes in consumer tastes and
preferences, the levels of marketing and promotional expenditures by Philips and
its competitors, raw materials and employee costs, changes in future exchange
and interest rates (in particular, changes in tax rates and future business
combinations, acquisitions or dispositions and the rate of technical changes.
Market share estimates contained in this report are based on outside sources
such as specialized research institutes, industry and dealer panels, etc. in
combination with management estimates.