NL- KKR, Silver Lake and AlpInvest to acquire Philips' chip division

Royal Philips Electronics has announced that it has signed an agreement with KKR, Silver Lake Partners and AlpInvest Partners NV regarding the sale of an 80.1% stake in Philips' Semiconductors business. Philips will retain a 19.9% stake in the business. The transaction will put the enterprise value for Philips' Semiconductors business at approximately EUR 8.3bn, consisting of EUR 3.4bn purchasing price, EUR 4bn for debt and other liabilities, and EUR 0.9bn for Philips' remaining stake. The transaction is expected to close in the fourth quarter of 2006, subject to closing conditions, including governmental and regulatory approvals.