June 30, 2006

Attention: Customer's Materials Managers, Customer's Purchasing Managers and Philips Products Managers

Subject: Philips Semiconductors' Product Discontinuation Notice Number DN-57

Dear Philips Semiconductors Customer or Distributor:

This letter confirms to your company that Philips Semiconductors is discontinuing the manufacture of a number of its' integrated circuits and discrete semiconductors listed on Exhibit A to this letter. In accordance with Philips Semiconductors' ("Philips") product discontinuation policy, we are hereby giving notice of these product changes so that your company can adjust its' product purchasing records, or make any final lifetime purchases of the discontinued products that still can be supplied by Philips.

While Exhibit A contains a number of Philips discontinued end-of-life part types, this list represents a small percentage of Philips overall semiconductor product portfolio. Many of these discontinued products have had little or no recent sales history, or they are at their end-of-life ("EOL") stage. The Exhibit A parts list may also cover a number of versions or selections of the same basic product.

 

A. DISCONTINUED PRODUCT NOTIFICATION

1.Philips Semiconductors has an extensive discontinued products ("EOL") public web-site that contains recent product discontinuation notices and other general information about Philips discontinued product policy and process. This DN-57 product discontinuation notice can also be found on this Philips web site after July 10, 2006. Additionally, any updated information concerning this DN-57 notice, and its listed discontinued products, will be posted onto this web site as such information may become available. We encourage you to visit our e-business discontinuation site at the following Philips internet address: http://www.nxp.com/eol

 

B. DISCONTINUED PRODUCTS: EXHIBIT "A" CODING

The attached information, format and coding structure applies to Exhibit A and to this DN-57 notice. This format is designed for data sorting of key information and coding fields as described below:

1. Philips Type Number: (Column 1):

The first column contains Philips part number as carried by Philips part number system ("Impulse System").

2. Philips North America (N. A.) Part Number (Column 2):

Certain older Philips part types may also be sold under Philips North America's part number system and may carry duplicate part number identifiers. In the event that there is a different North America callout for some of these products, two different part numbers will be shown for the same Philips discontinued Type Number (e.g. Philips Type Number and Philips North America Part Number represent the same product being discontinued). If there is a blank in the North America ("NA") Part Number column for a Philips Type Number, then a unique North America Part Number for that Philips Type has not been identified.

3. Philips Part Number Description (Column 3):

This column lists Philips' short product description ("SSPD") or a brief product description of the discontinued product supplied by the product group.

4. Philips 12NC Number (Column 4):

Exhibit A also includes a column designated as "12NC Number". This number represents Philips Semiconductors master internal manufacturing control identification number for reference to each part type, or version of the part type (end part number), being discontinued.

5. Discontinuation Type Code: (Column 5):

Code "T": Discontinuation of full Philips Type & North America Part Number: All Part Type packaging and packing options are discontinued.

Code "N": One of the part type package variants and its pertaining packing options is being discontinued (at least one other package option of the same product is still available).

6. Source Code (Column 6):

Code "M": Discontinued products covered by this notice considered to be industry multiple-source products are coded with an "M" in the "Source Code" column in Exhibit A.

Code "S": Discontinued products known as industry sole-source products are coded with an "S"

Code "C": Customer specific products are designated with a "C". A customer specific product is a part type that is uniquely produced or processed by Philips for a specific customer only.

7. Availability Code (Column 7):

Non-Availability - Code "1": Some part types may not be available and are identified with a not-available code (Code 1). Philips can no longer produce Code 1 products and no supply exists for various reasons such as "not acceptable product quality" or "unique manufacturing restrictions". Code 1 products cannot have a last time buy for commercially impracticable reasons. For record data sorting purposes only the date of Philips Semiconductors DN notice is entered for Code 1 Products as the last time ordering and delivery dates (zero days notice applies).

Limited Availability - Code "2": For limited availability products, a unique manufacturing or limited inventory or time condition exists. Where limited availability coded products are still manufacturable, a limited quantity of the product has been, or will be, produced within Philips remaining capacity to meet our customers or our distributors commercially reasonable last time buy orders. Code 2 products will be scheduled by Philips on a first-come/first-serve basis until the remaining part type manufacturing capacity or inventory is depleted. When the inventory for the limited availability product is depleted, no additional last time buy orders can be supplied by Philips.

Standard Availability - Code "3": Code 3 products have no known supply restriction and customers and distributors last time buy orders can be met according to Philips discontinued product (DOD) policy.

8. Last Time Buy ("LTB") - (Column 8):

This column lists the last time order date for the discontinued product. Unless a Non-Availability (Code 1) or Limited Availability (Code 2) shorter time period applies, Philips allows a six (6) month last order period for multiple-source ("M") products, a nine (9) month last order time period for sole-source ("S") and customer specific ("C") products. All LTB dates are measured from the date of this notice (ie: June 30, 2006) are shown as "day-month-year".

9. Last Time Delivery Date (Column 9):

The last delivery date for the discontinued products is listed in Column 9. Unless a limited availability condition and shorter time period is indicated, Philips allows a twelve (12) month delivery time period for discontinued products measured from the date of this notice (ie: twelve months from June 30, 2006).

10. Suggested Replacement Part (Column 10):

This column contains any known Philips or industry replacement products for the discontinued Philips Type numbers. This is "reference only" information. Philips replacement part designation is NOT intended as a statement of warranty indicating that the listed replacement products meet the same form, fit, function or performance of the discontinued product until such time as Philips customers or distributors qualify such products to their specifications. Contact Philips local sales or marketing representatives for further assistance concerning any replacement products.

11. Notice Comments (Column 11):

This section includes any additional information about the discontinued products.

 

C. LAST TIME BUY TERMS AND CONDITIONS

Carefully review this information and notify your purchasing offices and buyers to place your company's final purchases for available discontinued products with Philips as soon as possible according to the following last time buy terms and conditions.

GENERAL: Last time ordering conditions may vary by product. Refer to Exhibit A. The Last Time Buy Date automatically expires when the final available discontinued part type inventory quantity or production unit has been scheduled and/or sold by Philips.

1. DELIVERY DATES:

Last time delivery conditions may vary by product. Refer to the above coding information covering Column 9 of Exhibit A. Philips final delivery date(s) may be affected by limited supply conditions.

2. ORDER PLACEMENT:

Discontinued product orders placed with Philips are to be clearly identified as a "Last Time Buy" order. Each order must: (a) reference DN-57; (b) contain your company's requested delivery dates per this notice; (c) be within the minimum order quantity requirements in an existing volume purchase agreement or meet Philips' standard minimum order policy; and (d) otherwise conform to all other applicable conditions in this notice.

3. PRICING:

The unit sales price for purchase of the available discontinued products covered by this notice will be as follows:

a.) If a current signed volume purchase agreement is on file in Philips Semiconductors contracts-legal department, the unit price will be the effective agreement part type unit price for any unordered product quantities covered by such agreement. For quantities beyond the applicable unordered volume agreement quantity, the unit price will be subject to negotiation.

b.) If a valid offer-to-sell standalone quote is still in effect during the last time ordering period, the unit price shall remain as originally quoted by Philips for the offered part type quantities until the quote has expired, or until the quoted quantities have been purchased.

c.) Where a volume purchase agreement or a Philips standalone quote is not in effect, the Product unit price will be subject to Philips individual price quotation of your company's last time buy requirements.

 

4. ACKNOWLEDGEMENT & DELIVERY:

Philips will acknowledge ("Confirm") each acceptable discontinued product order in writing or by electronic data interchange ("EDI"), and Philips will use its good faith efforts to meet your company's requested delivery date(s) wherever possible. However, Philips' confirmed delivery date(s) are deemed to be approximate because of the special circumstances associated to last time product manufacturing conditions.

 

5. ORDER ACCEPTANCE/CHANGE CONDITIONS:

a) Philips will accept last time discontinued products orders from your company as "Firm and Final". As such, these discontinued products orders will not be subject to reschedule, cancellation, or termination by your company without Philips' prior written authorization and payment of termination charges for the ordered discontinued products at the full product unit sales price.

b) Philips reserves its right to make changes in its' confirmed scheduled delivery dates, or to terminate any remaining undelivered quantities of your company's last time buy order(s), at any time, due to changes in Philips Semiconductors last time manufacturing capabilities, or for commercially impracticable circumstances, which makes delivery not feasible.

 

6. QUANTITIES:

The following supply conditions apply to final buy quantities for available discontinued products.

a) FIRST: The quantities in any existing unfilled orders and contracts acknowledged by Philips will be honored, then

b) NEXT: The unfilled quantities in any volume agreement(s) or quantities in unexpired standalone quote(s) will be accepted, and

c) FINALLY: Philips shall, where possible, reasonably accept additional quantities of discontinued product order quantities that Philips quotes based upon your company's identified requirements.

IN THE EVENT OF CONFLICT FOR LIMITED AVAILABILITY DISCONTINUED PRODUCTS, THE QUANTITIES FOR PHILIPS CUSTOMER'S, OR PHILIPS DISTRIBUTOR'S, ORDERS WILL BE DETERMINED BY PHILIPS ON A "FIRST-COME FIRST-SERVE BASIS". THESE DISCONTINUED PRODUCTS ORDER QUANTITIES WILL ALSO BE SUBJECT TO PHILIPS' AVAILABLE INVENTORY AND REMAINING MANUFACTURING CAPACITY FOR THE DISCONTINUED PRODUCTS.

 

7. DISTRIBUTION SALES:

If you are a Philips distributor customer, please contact your authorized Philips distributor sales representative for assistance in planning and making any last time purchase(s) of available discontinued products. Such purchases are to be negotiated solely between your company with the distributor. You may also find additional information about Philips discontinued products on our discontinued products Internet web site at: "http://www.nxp.com/eol"

 

8. LIMITED WARRANTY

All discontinued product orders subject to this notice shall carry (a) Philips standard limited warranty as contained in Philips order acknowledgement or confirmation form, or (b) the applicable warranty set forth in a duly executed formal contract between Philips; provided that:

a) Philips will accept all valid discontinued product warranty claims for credit only, unless a replacement order is otherwise agreed to by Philips and the replacement product(s) can still be manufactured or otherwise delivered from Philips remaining product inventory; and

b) The applicable warranty period for making any return claims for discontinued products subject to this notice will be no longer than ninety (90) days following final delivery date of the discontinued products; and

c) Any return claims must be made under Philips current Return Material Authorization ("RMA") procedures.

d) Except for Philips special distributor stock rotation policy returns only, there is no restocking of purchased discontinued product quantities allowed by Philips from its' customers or from its' distributors.

 

D. DISCLAIMER AND ADDITIONAL PROVISIONS

Except as provided for elsewhere in this notice, the applicable terms and conditions of sale for Philips discontinued products will be the unmodified terms and conditions in Philips standard order acknowledgement or order confirmation form, incorporated herein in its entirety by this reference. Otherwise, the applicable, the terms and conditions contained in a duly signed contract in force between our companies shall apply.

PHILIPS SEMICONDUCTORS ACCEPTS NO LIABILITY FOR EXCESS REPROCUREMENT COSTS, LABOR COSTS, OR LIABILITY FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER ASSOCIATED TO PHILIPS DISCONTINUED PRODUCTS, OR ASSOCIATED WITH PHILIPS FINAL MANUFACTURE AND PERFORMANCE AGAINST ANY LAST TIME BUY ORDERS RELATED TO THE DISCONTINUED PRODUCTS COVERED BY THIS NOTICE.

 

E. REACTIVATION OF PREVIOUSLY DISCONTINUED PRODUCTS

From time-to-time, Philips may elect to reactivate a previously discontinued product, or Philips may identify additional information to help clarify a previously discontinued product. Such product reactivation or additional information is made directly onto Philips public internet EOL web-site at the time such product information becomes available by our product market representatives and on the product lines public product websites . Refer to Philips referenced EOL Internet web site for any Philips product reactivation or other updated information concerning our previously announced discontinued products.

Attached to this DN-57 notice is an Exhibit B that lists certain re-activated products and/or general product clarification information concerning previous Philips discontinued products that were reactivated during the six months from December 1, 2005 to May 31, 2006.

 

F. ADDITIONAL INFORMATION

For specific product inquiries in this notice, contact your local Philips Semiconductors sales or distributor representative. Additionally, you may refer to the Philips public "EOL" discontinued products web site at: "http://www.nxp.com/eol".

Our account management, sales management, marketing and distribution sales support personnel stand ready to assist you in placing your company's final discontinued product orders, or in providing the discontinued product information you require. We hope that this product discontinuation notice does not cause your company an inconvenience, and we appreciate your understanding and assistance in helping us to help you minimize the impact of this product end-of-life action on your company.

On behalf of Philips Semiconductors management, we look forward to our continued support of your company's semiconductor requirements from our extensive existing and planned future product portfolio in the years to come.

Very truly yours,

PHILIPS SEMICONDUCTORS

Craig Ash
Contracts-Legal Department
Product Discontinuation Notice Management

Enclosures:
Exhibit A - DN-57 Discontinued Product List
Exhibit B - Reactivated Products List