Frost & Sullivan Presents Philips With 2005 Technology Leadership Award

Frost & Sullivan Presents Philips With 2005 Technology Leadership Award

LONDON, December 12/PRNewswire/ --

- Philips Excellence in European Remote Patient Monitoring Markets
Recognized

Frost & Sullivan today announced it has presented Philips Medical Systems
with the 2005 Technology Leadership Award for excellence in European remote
patient monitoring markets.(1) Recognizing Philips for pioneering vision and
superior technological solutions, the award cites the company's advanced
patient telemonitoring systems and Motiva, a TV-based remote patient
management platform, as demonstrated leadership in the mission to reduce
costs and improve quality of life for patients with chronic disease.

"Burgeoning healthcare costs and the rising incidence of
lifestyle-related problems such as heart failure, diabetes, COPD, asthma and
depression underline the need for technologies such as those developed by
Philips Medical Systems. The company has essentially scripted a new paradigm
in healthcare delivery, offering effective and economical healthcare
management alternatives to health care providers and patients alike," said
Frost & Sullivan Research Analyst Aarati Ajay.

"Philips is among the few companies that have identified the need for
remote patient monitoring technologies and mined the associated growth
opportunities present in that field. Leveraging its technological
competencies, Philips' patient-focused solutions have resulted in the
expansion of its already strong customer base and are likely to ensure its
long-term success in the remote patient monitoring arena," added Ms. Ajay.

Philips Telemonitoring Services uses the home telephone for transmitting
data such as survey responses and vital sign measurements from the patient to
their care manager. The new Motiva platform being developed uses the
television, an equally familiar home appliance, to provide an engaging,
media-rich experience for the patient. Installation of a set top box lets
patients access their own 'personal healthcare channel' for educational video
content, personalized messages from caregivers, tailored daily surveys and
other relevant content, including feedback on vital signs if home measurement
devices are prescribed.

According to WHO statistics, over 18% of Europe's population is above the
age of 65. Frost & Sullivan research shows that this age category considers
television to be a more user-friendly medium than the computer.

"The Philips approach to chronic disease management is based on the
principle that healthcare delivery processes can apply broadband-based
technology to enable simple, more cost-effective and interactive care, and
that new remote patient management tools can contribute fiscal and clinical
value across multiple diseases," said Jay Mazelsky, general manager, new
ventures business unit for Philips Medical Systems.

Philips is designing Motiva as a way to drive behavior change, such as
diet and exercise habits, in patients with chronic conditions. Through
personalized daily interactions over the home television, the system aims to
motivate patients' compliance with their care plan - a sequence of goal
modules, messaging and health assessments defined by the caregiver at
enrollment. Likewise, Motiva's clinical decision support tools are designed
to help healthcare providers better coordinate their chronic care delivery
and offer more cost-effective patient management. Motiva is scheduled for
commercial release in the U.S. in early 2006, and later in the year for
select European countries.

"Philips telemonitoring services portfolio, its proven success in
reducing costs, increasing patient satisfaction and improving survival
rates,(2) and now the launch of Motiva, positions Philips Medical Systems
as the technology leader in the field of remote patient monitoring,"
concludes Ms. Ajay.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering
with clients to support the development of innovative strategies for more
than 40 years. The company's industry expertise integrates growth consulting,
growth partnership services, and corporate management training to identify
and develop opportunities. Frost & Sullivan serves an extensive clientele
that includes Global 1000 companies, emerging companies, and the investment
community by providing comprehensive industry coverage that reflects a unique
global perspective and combines ongoing analysis of markets, technologies,
econometrics, and demographics. For more information, visit www.frost.com.

Frost & Sullivan Awards are presented to companies that demonstrate best
practices in their industry, commending the diligence, commitment, and
innovative business strategies required to advance in the global marketplace.
Frost & Sullivan rigorously analyses specific criteria to determine award
recipients in a broad spectrum of market industries and landscapes. For more
information, visit www.awards.frost.com.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one
of the world's biggest electronics companies and Europe's largest, with sales
of US$37.66 billion (EUR 30.3 billion) in 2004. With activities in the three
interlocking domains of healthcare, lifestyle and technology and 161,500
employees in more than 60 countries, it has market leadership positions in
medical diagnostic imaging and patient monitoring, color television sets,
electric shavers, lighting and silicon system solutions. News from Philips is
located at www.philips.com/newscenter. See
www.medical.philips.com/goto/motiva for information about Philips remote
patient management solutions.

Still in development - Motiva is not available in the U.S.

Endnotes:

(1) European Remote Patient Monitoring Markets, Frost & Sullivan Research
Report B519-56. Research Analyst, Aarati Ajay. Published 20 June 2005.

(2) Cleland John GF, Balk Aggie, Janssens, Uwe, et al. Non-Invasive Home
Telemonitoring for Patients with Heart Failure at High Risk of Recurrent
Admission and Death: The Trans-European Network - Home-Care Management Systems
study (TEN-HMS), Journal of the American College of Cardiology, May 17, 2005,
Vol. 45, No. 10(1654-64).

Media Contacts

Srividhya Parthasarathy
Corporate Communications
Frost & Sullivan
Phone: +91-44-420-44-668
Email: sparthasarathy@frost.com

Heidi Wilson
Corporate Communications
Philips Medical Systems
Phone: +1-978-659-7302
Email: heidi.Wilson@philips.com

Source: Frost & Sullivan

Srividhya Parthasarathy, Corporate Communications, Frost & Sullivan, Tel: +91-44-420-44-668, Email: sparthasarathy@frost.com, Heidi Wilson, Corporate Communications, Philips Medical Systems, Tel: +1-978-659-7302, Email: heidi.Wilson@philips.com

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