Eindhoven, the Netherlands, 17 January 2007 - NXP Semiconductors (formerly Philips Semiconductors) today announced a reorganization of its two Dutch subsidiaries. The proposed changes are part of the company’s ongoing “Business Renewal" program started over two years ago by Chief Executive Officer Frans van Houten. This program focuses on enhancing the company’s competitiveness, with improvement of NXP’s growth and market position as the ultimate goal.

At NXP's Nijmegen plant, the reorganization includes further efficiency improvements of the industrial organization and adjustments to the support departments. Additionally, a minor unprofitable business activity will be terminated. These adjustments will affect approximately 350 positions in Nijmegen.

Within NXP in Eindhoven, a number of jobs will also be made redundant. NXP will do its utmost to employ these affected employees in a different position, but expects that redundancy is an inevitable option for some.

The company is currently conducting negotiations with unions and employees councils with regard to the implications and implementation of the proposed measures. NXP intends to carry out the measures it announced in the course of 2007.

In total, approximately 6,500 people work for NXP in the Netherlands, 4,300 of which are stationed in Nijmegen.

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.

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.