Philips and Hometown Connections sign agreement to offer defibrillators to public power entities

ANDOVER, Mass., Oct. 21, 2002 — Royal Philips Electronics and Hometown Connections International, LLC, a subsidiary of the American Public Power Association (APPA), announced an exclusive sales and marketing agreement to provide Philips HeartStart FR2+ automated external defibrillators (AEDs) to APPA members and certain government-owned electric entities.

APPA represents more than 2,000 public power entities located in the U.S. and Canada. Under the terms of the agreement, Hometown Connections will educate APPA members about the importance of early defibrillation and market the HeartStart FR2+ AEDs at a reduced price, facilitating the broad deployment of potentially lifesaving technology within an industry whose workers are at a heightened risk for cardiac arrest.

“APPA strongly encourages utility firms to deploy AEDs throughout their facilities to protect the health and safety of employees whose work with electricity places them at higher risk for cardiac arrest,” said Alan H. Richardson, president and CEO, APPA.

“Philips’ demonstrated leadership in defibrillation therapy and expertise in providing deployment support and services make them an ideal partner for public power entities. We are proud to be working with Philips in our initiative to safeguard the lives of public power employees,” said Timothy Blodgett, president and CEO of Hometown Connections.

The Philips HeartStart FR2+ is well-suited for utility firms due to its state-of-the-art technology that has resulted in a device that is small and lightweight, yet considerably rugged and durable. The HeartStart FR2+ provides defibrillation therapy, or an electrical shock, to the heart of sudden cardiac arrest (SCA) victims. SCA is a leading cause of death, claiming a quarter million lives each year in the United States alone. Today, fewer than five percent of sudden cardiac arrest victims survive, largely because defibrillators do not reach them in time. For each minute that passes before defibrillation therapy, the chance for survival decreases by about 10 percent.

According to terms of the agreement, Philips will provide a customized implementation program for public power entities. In addition to discounted pricing on the AEDs, the program includes site analysis, identification of medical direction and training needs, and assistance with the development of an AED response plan.

“Ensuring the safety of our employees is not only a priority, but a responsibility,” said Joel McNerny, nuclear instructor and EMT captain of the Nebraska Public Power District’s Cooper Nuclear Station. “Having deployed the Philips HeartStart FR2+ in our facilities, we are confident that in the event of a cardiac emergency, we will be prepared to help save the life of a co-worker.”

“The agreement with Hometown Connections reinforces Philips’ mission to lead the fight against sudden cardiac arrest wherever it happens, especially in those professions that are potentially at heightened risk, such as the utility industry,” said Deborah DiSanzo, vice president and general manager for Cardiac Resuscitation at Philips Medical Systems. “Our commitment to the creation of AED programs within the utilities industry has allowed us the opportunity to work with several public power entities in the past. We applaud Hometown Connections for leading the effort to educate more public power entities about the importance of early defibrillation and helping them to purchase AEDs to protect their employees in the event of sudden cardiac arrest.”

About Hometown Connections

Hometown Connections is majority-owned by the American Public Power Association (APPA), a Washington, D.C.-based national service organization representing the interests of the nation’s more than 2,000 community- and state-owned electric utilities. Hometown Connections supports APPA members by securing national group pricing and service arrangements from leading industry suppliers. For more information, visit http://www.hometownconnections.com.

About APPA

The American Public Power Association (APPA) is the service organization for the nation’s more than 2,000 community-owned electric utilities that serve more than 40 million Americans. It was created in 1940 as a non-profit, non-partisan organization. Its purpose is to advance the public policy interests of its members and their consumers, and provide member services to ensure adequate, reliable electricity at a reasonable price with the proper protection of the environment. For more information, visit www.appanet.org.

Royal Philips Electronics of the Netherlands is one of the world’s biggest electronics companies and Europe’s largest, with sales of EUR 32.3 billion in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 186,000 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.philips.com/newscenter.

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