• Fourth-quarter net income increased to EUR 680 million from EUR 332 million in Q4 2005, bringing full-year net income to EUR 5,383 million, compared with EUR 2,868 million in 2005
• Philips announced and/or completed seven strategically aligned acquisitions in 2006 that will add to further growth
• Continuation of the share repurchase program brings total cash returned to shareholders in 2006 to over EUR 3.3 billion
• Proposal to increase the dividend for 2006 significantly to EUR 0.60 from EUR 0.44 in 2005
(See attached file: Report on the performance of the Philips Group.pdf)