Display merger

Royal Philips Electronics and Toppoly Optoelectronics of Taiwan are to create a joint venture company that will develop and build mobile displays.

The new company will be named TPO, and its principal shareholders will be Compal Electronics (of Taiwan) with 25.1%, Philips with 17.5%, and UniPresident Enterprises (of Taiwan) with 3.5%.

Toppoly will contribute its display production facilities in Taiwan and China to the joint venture. Philips will contribute its substantial intellectual property portfolio and its advanced technology in cooperation with Philips Research.

As a result of the deal, Philips will take a charge of approximately 70 million Euros in fourth quarter 2005.

The transaction is conditional upon regulatory approvals, and is expected to be completed in the first half of 2006.