Philips Teams with Rhapsody to Launch New Lines of Portable and In-Home Audio Products

New Streamium In-Home Audio Systems and GoGear Portable Devices to Feature Integrated Rhapsody Music Experience

LAS VEGAS — January 6, 2008  — Philips and RealNetworks®, Inc., today announced a new alliance to bring Rhapsody®, the award-winning digital music service from Real and MTV Networks, to consumers both on the go and in the home with Philips' new portable MP3 GoGear™ players and Philips' Streamium™ home audio product line.

The first digital audio devices from the Philips/Rhapsody collaboration are expected in early 2008 and can be previewed beginning January 7 and throughout the 2008 International Consumer Electronics Show in the RealNetworks booth (South 36200) or in Philips' booth (Central 12124).

"Following the dramatic growth of the global MP3 digital music player market, we have identified an opportunity to deliver high quality music content to consumers both at home and on the go," said Wiebo Vaartjes, General Manager, Audio & Multimedia Applications, at Philips Consumer Electronics. "Rhapsody has proven itself to be the ideal ally to achieve this, by helping us launch Rhapsody-enabled GoGear and Streamium products to the market. This content-led direction underlines Philips' commitment to offering consumers a market leading, robust music subscription model, aimed at delivering music enjoyment, whether at home or on the go."

Philips' Rhapsody-enhanced Streamium home audio products give consumers access from their living room to Rhapsody's catalog of over 4.5 million songs, professionally programmed music channels, personalized recommendations and thousands of themed playlists via their home stereo systems. Philips' Streamium NP1100, the first device in the line to launch with Rhapsody, also features a built-in PC Link, a black and white display, internet radio connectivity and streaming from other PCs on the same Wi-Fi network.

"Rhapsody DNA technologies give our partners the ability to create a rich, unlimited digital music experience for consumers with their products," said Robert Williams, SVP of music products, RealNetworks. "We are excited to be teaming with Philips to bring that Rhapsody-enhanced experience to every device in their new Streamium and GoGear products lines."

Philips' new GoGear portable players will be optimized to work with the Rhapsody service to give consumers a seamless, interactive music experience. The players will let users rate and save songs to their Rhapsody library, flag songs for later purchase and access Rhapsody's critically acclaimed editorial content, all while on the go. The GoGear portable series of players will also ship with enhancements ranging from a larger screen size and better battery efficiency, to built-in Bluetooth and larger memory capacity.

Philips' Streamium home audio product and Philips' GoGear portable player lines will both ship with a 30-day free trial of the Rhapsody service. At the conclusion of the free trial, consumers can extend their Rhapsody service by signing up for Rhapsody Unlimited ($12.99/month) for throughout-the-home access to Rhapsody or Rhapsody To Go ($14.99/month) to take music anywhere with the GoGear portable players. Current Rhapsody subscribers can get started immediately with an enhanced music experience with both lines of Philips' new devices.

For more information on Philips' product lines, please visit www.philips.com/ces.

For more information about the Rhapsody digital music service, visit www.rhapsody.com.

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For More Information:
Katie Bromley
Philips
(770) 821-3629
katie.bromley@philips.com

Ronda Scott
RealNetworks
(415) 934-2016
rscott@real.com

ABOUT ROYAL PHILIPS ELECTRONICS

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services and solutions through the brand promise of "sense and simplicity." Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales USD 34 billion (EUR 27 billion) in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, as well as lifestyle solutions for personal wellbeing. News from Philips is located at www.philips.com/newscenter.

ABOUT REALNETWORKS

RealNetworks, Inc. is the leading creator of digital media services and software including Rhapsody, RealPlayer® 10, and casual PC and mobile games. Broadcasters, network operators, media companies and enterprises use RealNetworks' products and services to create and deliver digital media to PCs, mobile phones and consumer electronics devices.  Consumers can access and experience audio/video programming and download RealNetworks' consumer software at www.real.com. RealNetworks' systems and corporate information is located at www.realnetworks.com.

ABOUT RHAPSODY

Rhapsody offers an integrated and immersive digital music experience accessible to consumers via their computer, portable music device and soon their mobile phone. Rhapsody is the exclusive digital music service for RealNetworks, Inc. and for MTV Networks' music and pop-culture brands in the United States. Rhapsody is a service of Rhapsody America LLC, a joint venture between MTV Networks, a unit of Viacom (NYSE:VIA) (NYSE:VIA.B) and RealNetworks (Nasdaq RNWK).

RealNetworks and Rhapsody are registered trademarks of RealNetworks, Inc.  All other trademarks are the property of their respective owners.