Las Vegas, January 8, 2007 – NXP Semiconductors, the newly independent semiconductor company founded by Philips, today announced at the 2007 Consumer Electronics Show (CES) in Las Vegas, that Polaroid Corporation has selected NXP Semiconductors to produce its first completely connected family of consumer devices, the DEC500 and DEC1000 digital entertainment centers and digital picture frames (DPF). NXP’s solutions based on the PNX1502 media processor offer multi-format digital audio and video decoding, exceptional picture quality, and seamless network connectivity. Sophisticated middleware enables wireless streaming or downloading of high-quality music, videos, and photos from the DEC server or a PC to the TV or connected DPF.

Polaroid selected NXP to deliver complete, production-ready solutions that enable Polaroid’s family of connected living products to communicate with each other with or without wires and provide easy access to rich content. All three products are standards-compliant including UPnP support, and designed to DLNA guidelines, making it easy for consumers to set up and use them.

"Multimedia networking applications, such as sharing media files on a network or streaming content from a PC to one or more entertainment platforms, are key aspects of the connected entertainment experience consumers are demanding," said Harry Wang, research analyst at Parks Associates. "The ability to distribute high-value content through multiple channels will spur consumers' interest in home connectivity and multimedia consumption over the home network."1

“NXP’s focus to deliver technology solutions for a connected living environment was a perfect match for Polaroid’s endeavor to offer the first truly connected digital photo frame and our connected line of products,” said Jon Pollock, vice president and general manager, product planning & new technology, Polaroid Corporation. “Our products enable people to store, easily access and manage digital content anywhere, anytime without having to worry about audio/video formats or quality.”

“The use of NXP media processors in the first family of connected entertainment devices from Polaroid demonstrates NXP’s expertise to deliver technology that enables a vibrant media experience anywhere in the home,” said Menno Kleingeld, senior marketing director, Home business unit, NXP Semiconductors. “Our commitment to innovation helps us to offer proven and tested solutions that support industry standards, content copyrights and work across a variety of products.”

NXP’s Nexperia PNX1502 media processor is a low-cost single-chip solution for real-time multimedia processing, with extensive connectivity options, dynamic power management and compatibility with all leading audio, video and communications standards. The solution set for Polaroid’s digital entertainment centers and digital picture frames is also equipped with performance enhancing components such as NTSC/PAL encoders for HD resolution, USB on-the-go (OTG) controller, and HDMI drivers.

NXP Semiconductors is powering the revolution in the TV viewing experience by not only improving picture quality, but also enabling a variety of audio, video, data and images to be available anytime, anywhere throughout the home and on-the-move. The TV will soon be the window to a world of new content, and NXP is unique in supporting these developments with a full range of semiconductor components, system solutions and connected systems based on industry standards.

^{1 According to Parks Associates' report, "Networks in the Home: Connected Consumer Electronics" (July 2006), in the US alone, 39% of broadband households with a data network and 37% of broadband households without a home network consider multimedia networking applications highly valuable.}

About Polaroid Corporation

Polaroid Corporation, a company of Petters Group Worldwide, designs, develops, manufactures and markets instant and digital imaging and consumer electronics products including LCD and flat-screen TVs, portable DVD players, digital cameras, GPS, and related accessories which are marketed worldwide. For more information, visit: www.polaroid.com.

About NXP Semiconductors

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in the Netherlands, the company has 37,000 employees working in 20 countries across the world. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com/news.

Nexperia is a trademark of NXP. All other brands or product names are property of their respective holders.

Forward-looking Statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NXP and certain plans and objectives of NXP with respect to these 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 and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.