USHIO To Acquire Extreme UV Business From PHILIPS

Subsidiary to start development and full production of EUV light source

Ushio Inc. and Royal Philips Electronics today announced that they have signed an agreement for the transfer of Philips’ Extreme UV business to Ushio’s 100% subsidiary XTREME Technologies GmbH, subject to required regulatory approvals and conditions.

XTREME Technologies has an existing research and development activity for EUV light sources, and has been a partner with Philips since 2008 in the development of next-generation semiconductor-based EUV light sources.

Accordingly, the head office of XTREME will relocate from Göttingen, Germany to Aachen, also in Germany, where Philips’ EUV business is located, to integrate the development and production processes of EUV light sources. Subject to obtaining required approvals, operations are scheduled to start this summer. The agreement includes the transfer of all related Philips employees to XTREME.

Currently, excimer laser with a wavelength of 193 nanometers is being used in the exposure process for the finest line width of semiconductors. However, EUV light sources at 13.5 nanometer are indispensable for manufacturing next-generation semiconductors with even finer line widths of just over 20 nanometers, or later generations, meeting requirements of semiconductor manufacturers.

USHIO took a 50% equity stake in XTREME in 2005, and in 2008 commenced joint research with Philips, which was also active with EUV light sources. In the same year, USHIO made XTREME a 100% subsidiary.

The integration of all EUV research and development work into XTREME will enable further development of EUV light sources. This will enable USHIO to begin full-scale production.

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs more than 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is leading in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with leading positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.