Eindhoven, August 27, 2007 – NXP Semiconductors, the independent company founded by Philips, has marked its first year as a dedicated semiconductor company by launching an average of almost ten new products per week in its first year. The company announced today that it has introduced 500 product innovations in the past year as part of its strategy for leadership in six growth domains: cellular phones, personal entertainment, home electronics, automotive, identification and multi market semiconductors.

In its latest transformational move, NXP Semiconductors has revamped its R&D programs for the next three years through its “Roadmap for Leadership” in order to develop a series of ground breaking products on which it will focus its resources to better match the needs of its customers and accelerate growth.

As a consequence, NXP will step up investments in 27 business segments, maintain current spending levels in 18 segments, and right-size spending in six segments. Already NXP has leadership positions with approximately 50% of the product lines. The “Roadmap for Leadership” decisions taken recently will help NXP build more leadership positions in their six growth domains. In total, R&D spending at NXP will stay around EUR 950 million per year but with investment more directed towards the most promising market opportunities.

At IFA 2007, NXP will again bring a slate of innovative products to the market, showcasing new technologies that enable crystal clear HD motion pictures and allow wireless streaming of HDTV around the home.

Reflecting on the company’s first year, NXP's President and CEO, Frans van Houten, said, “We are making good progress on our journey to become an agile, cost efficient, high performing and customer-driven company. As an independent company, we have taken decisions fast and can point to many achievements. Our Business Renewal II Programme is expected to exceed the EUR 250 million of cost savings achieved in the first phase of Business Renewal and we moved towards an asset light manufacturing model. Our firm objective has been to develop a high-performance organization that leads in its key markets. We did so by completing our first two acquisitions and by recruiting two leading executives from the industry to head our Home and Mobile and Personal operations.”

“Our key customers include world leading mobile and consumer electronics brands like Nokia, Motorola, SonyEricsson, BenQ, Samsung, Philips, and TCL. We have announced design wins for our cellular solutions with, among others, T-Mobile, Samsung, Lenovo and other top tier handset manufacturers. We have proven our leadership position in the China 3G standard, and launched the first GSM/EDGE/TD-SCDMA automatic handover solutions for the China 3G market. Our system chips power leading brand digital TVs and set- top boxes around the globe. Our FlexRay technology has been selected for use in BMW cars. Our secure ID chips are in electronic passports across the world. Most recently we have seen trials start in London where our Near Field Communication technology will allow commuters to retrieve travel information in the underground using their mobile phone.”

“It was not a simple job to carve out NXP from Philips, but we have inspired and talented people who achieved this in incredible time, despite the soft market environment. We are confident about our progress to date, and excited by our prospects for the future,” Mr van Houten concluded.

About NXP

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in 26 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.