Both organizations have recognized the enormous demand for non-traditional payments via connected consumer devices such as PCs, mobile phones, gaming and other handheld devices. By combining the benefits of electronic payments and contactless chip technology, Philips and Visa plan to deliver contactless solutions that will enable payment transactions anywhere, anytime and through any device.

Through the alliance, Philips and Visa intend to explore a wide variety of applications and engage potential partners, such as handset and electronic device manufacturers and service providers, in areas such as gaming, ticketing, music, mass transit, and home shopping. As a result, content providers and merchants will have a means to develop new revenue streams and distribution opportunities, as well as attract new customers. Consumers will benefit from easier, more flexible access to new shopping, transit and entertainment experiences. Banks will have the opportunity to improve customer convenience and create new service models.

“As a pioneer in delivering contactless solutions for connected consumer applications, Philips’ alliance with Visa embodies the vision of bringing universal commerce to connected consumers. Visa’s trusted payment expertise and Philips’ innovation legacy makes for an ideal partnership and we both look forward to setting the standard for future payment technology,” said Karsten Ottenberg, senior vice president at Philips Semiconductors. “Philips’ vision of the future is a world connected in which everyone can always securely access multi-rich information, entertainment and services. Our contactless chip technology, which can be utilized for convenient and secure Visa payment transactions, is a key strategic cornerstone in making the connected consumer and the connected home a reality.”

“Visa’s commitment as the world’s leading payment brand is to enable commerce in any environment and through any means,” said Stephen Schapp, executive vice president, Global Product Platforms, Visa International. “We are very pleased to be working with Philips as a global leader in contactless chip technology. Our vision of universal commerce is to leverage Visa’s global reach, systems capabilities, and positive brand association, and to embrace new technologies in such a way that we facilitate secure payments through any channel and on any device.”

The two global organizations have signed a Memorandum of Understanding (MOU) that outlines the scope of cooperation between the two companies. This agreement includes exploring the business requirements for secure payments utilizing contactless chip technology. Specifically, Philips and Visa are looking to identify joint business partners, such as hardware manufacturers and content providers, and to investigate developing business and technical models that meet their unique needs.

Royal Philips Electronics of the Netherlands is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 31.8 billion in 2002. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 166,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.semiconductors.philips.com.

About Visa International

Visa is the world’s leading payment brand generating US$2.4 trillion in annual card sales volume. Visa has unsurpassed acceptance in more than 150 countries. The Visa organization plays a pivotal role in developing innovative payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce-the ability to conduct commerce anywhere, anytime, and any way. For more information, visit www.corporate.visa.com.