The sale of equipment follows NXP’s announcement on January 16 this year that it will not extend its current cooperation in the Crolles2 Alliance beyond the term expiring at the end of 2007. NXP has decided to pursue a different path for its future development of process technology.

NXP Semiconductors, the independent semiconductor company founded by Philips, today announced that it has concluded the sale of its equipment at the Crolles facility. The equipment mainly includes tools for research & development and pilot manufacturing. Ownership of the equipment will be transferred on December 31, 2007 and June 30, 2008 in line with payments made to NXP on these dates. Further details of the transaction were not disclosed.

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 more than 20 countries and posted sales of EUR 5 billion in 2006. 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.