ANDOVER, Massachusetts, January 7, 2003 - Royal Philips Electronics (NYSE: PHG, AEX: PHI), announced today that its medical systems division, a leader in patient monitoring, and Masimo, a leader of motion and low perfusion tolerant pulse oximetry, have signed a long-term, comprehensive worldwide agreement that will make Masimo SET pulse oximetry available to Philips' patient monitoring customers. A Masimo SET Module for Philips IntelliVue™ monitors was debuted at the American Society of Anesthesiologists annual meeting in October 2003, and is intended to be available for worldwide sale, pending regulatory approval. For the large installed base of Philips CMS and V24/V26 patient monitors, Masimo SET technology is available through a specific Philips VueLink interface module or the Masimo SatShare™ interface. Additionally, Masimo will sell Masimo's LNOP sensors to Philips installed customer base.

"We are very excited to be able to offer our customers the choice of Masimo SET pulse oximetry, said Ken Ferry, senior vice president and general manager, patient monitoring for Philips Medical Systems. "Masimo has pioneered motion and low perfusion tolerant technology and enjoys tremendous support within the clinical and research community. With this agreement, Philips underlines its clinical and technological excellence by offering our customers the widest choice of pulse oximetry technologies and sensors in the patient monitoring industry."

"Philips has a very strong worldwide market presence due to their pursuit of excellence. They are consistently ranked among the top-performing patient monitoring manufacturers, their most recent award being a 'best-of' ranking in over 60 percent of the categories in IMV's customer satisfaction survey performed in the USA," said Joe E. Kiani, Chief Executive Officer of Masimo. "Philips has listened to its customers and has decided to adopt Masimo SET technology as they requested. We are proud to have Philips as a partner in advancing the standard of care."

About Philips Medical
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $30.1 billion (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 166,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.

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About Masimo Corporation
Masimo, founded in 1989, is the innovator and leader of motion and low perfusion tolerant pulse oximetry. Masimo develops, licenses and markets advanced medical signal processing technologies and products for the non-invasive monitoring of vital signs. Masimo Signal Extraction Technology represents a fundamental departure from conventional pulse oximetry technologies. Over 70 independent and objective, published studies have demonstrated that Masimo Signal Extraction Technology is the safest and most effective pulse oximeter in the world. To date, Masimo has licensed its Signal Extraction Pulse Oximetry technology to over 35 international patient monitoring system providers, which make up over 70% of the world's pulse oximeter shipments. Masimo is headquartered in Irvine, California. Additional information about Masimo and its products can be found on www.masimo.com.