PHILIPS INTRODUCES HANDHELD PERSONAL COMPUTER

COMDEX, Las Vegas -- November 18, 1996 -- The Philips Mobile Computing Group, a division of Philips Electronics North America Corporation, today announced the Velo^TM 1, a handheld personal computer based on the Microsoft® Windows® CE platform. It allows the on-the-go professional to carry the essence of their computer when they are away from their desktop.

The Velo 1 handheld PC provides users with a lightweight, portable and familiar solution for mobile computing, communications and information management. It offers the most highly integrated communications and superior expandability of all the handheld PCs based on Windows CE.

"The Velo 1 is designed for busy professionals who need essential information and computing capabilities while they are on the go," said Alan Soucy, general manager of the Philips Mobile Computing Group. "In fact, for many people, the Velo 1 will provide the equivalent functionality of a conventional notebook PC, without the weight, inconvenience, and high price. The Velo 1 is configured with everything a busy professional needs, right out of the box. To achieve this, we have gone well beyond the base Windows CE applications and added extensive communications capabilities and expansion options that will keep the Velo 1 useful for years to come."

Superior Integration and Expandability
The Velo 1 provides a wide suite of highly integrated communications in addition to the basic functions of Windows CE. Philips has added a built-in 19.2 Kbps modem; fax-send capability; access to corporate cc:Mail and Microsoft MS Mail systems; a low-profile RJ-11 jack; and the Velo Voice Memo, an easy-to-use integrated voice recorder.

In addition, the built-in data/fax modem and dual expansion slots mean that users can expand their memory and upgrade their operating system without sacrificing communications capabilities. To accomplish this, the Velo 1 incorporates Miniature Card technology, which allows it to maintain a slim shape and offers two slots for memory expansion and system upgrades.

"In our research, we noticed that most people use PC Cards for modems and memory expansion; because of our internal modem and dual Miniature Card slots, we found that the PC cards are no longer necessary for these functions," said Luciane Marques, director of marketing and business development for the Philips Mobile Computing Group. "We do recognize that the PC card is an industry standard and have developed an attachable Type II PC card V-Module, based on the Velo CT (connection technology) architecture, to support the use of PC Cards for wireless communications, global positioning systems and other great applications. In addition, developers may use the Velo CT specification to create other V-Modules, such as digital cameras, business card scanners, and wireless solutions for the vertical and corporate marketplace."

Features and Performance
Other key advantages to the Velo 1 are the multiple power options, backlighting and a high-speed chipset, the TwoChipPICä, from Philips Semiconductors. The power sources available include AA batteries, an optional nickel-metal hydride rechargeable battery pack, and an AC adapter. These solutions, especially the AA batteries, are inexpensive and easily accessible. The backlighting is useful in any lighting situation that is less-than perfect, such as in a dimly lit airplane. And finally, the performance of the PR31500 processor, based on a MIPS 3910 RISC core, is second-to-none and moves at the "speed of work," determined not to slow a user down.

"Often we are asked to look at products that our large corporate clients are considering and our relationship with that client is based on the result of following that recommendation," said Rob Enderle, senior industry analyst for the Giga Information Group. "We believe that the Windows CE platform in general will best meet the needs of most of our clients that are considering handheld computers and that the Velo 1, because of greater flexibility, price, and included features, currently is superior to other offerings in this class." The Velo Dock creates a home for the Velo 1 on the desktop; it allows for easy transfer of information between the Velo 1 and a PC equipped with Windows 95. Not only does the Dock synchronize all the personal information management (PIM) functions of Windows CE, but also charges the optional rechargeable battery pack.

Microsoft Windows CE
The Windows CE operating system provides a familiar, easy-to-learn user interface modeled after Windows 95. It comes equipped with Microsoft Pocket Word, Microsoft Pocket Excel, Inbox and Microsoft Pocket Explorer, which enables the user to access the Internet, send and receive e-mail or browse the World Wide Web. "The combination of Microsoft and Philips, two of the world's leading software and consumer electronics companies, respectively, comes to a dynamic head with the Velo handheld PC," said Craig Mundie, senior vice president of the consumer platforms division at Microsoft. "With the help of products like the Philips Velo 1, Microsoft will achieve its goal of creating and offering an open, standard platform that will expand the new category of handheld PCs."

Pricing and Availability
The Velo 1 handheld PC and the Velo Dock is scheduled to be available in retail outlets in the first quarter of 1997. Prices will start at $599 for the base unit with 2MB of memory; the Velo 1 with an additional 2MB (4MB total) of memory will be priced at $699; finally, a 4MB unit together with a rechargeable nickel-metal hydride battery pack will be priced at $739. All of the bundles include the Velo Dock. All prices are estimated street price.

Accessories
Optional accessories can extend the usefulness and convenience of using the Velo 1. Initially, the options that are being announced for the Velo 1 are: the Velo Type II PC Card V-Module, which supports the use of a Type II PC Card; 2MB and 4MB DRAM and Flash memory Miniature Cards; a Velo-to-PC traveling cable, to allow connection to a computer while away from the Velo Dock; a carrying case; a traveling AC power adapter; a rechargeable battery pack; and extra styli.

The Company
The Philips Mobile Computing Group, with headquarters in Sunnyvale, California, is one of the first new initiatives in digital convergence from Philips Electronics. Philips Electronics (NYSE: PHG) is one of the world's largest consumer electronics companies will annual sales of $40 billion. Its products include: consumer electronics; lighting; components; semiconductors; communication systems; multimedia systems and software; domestic appliances; professional solutions; medical systems and personal care products.

JPL's Wireless Communication Reference Website, 1997.

Velo is either a registered trademark or trademark of Philips Electronics in the United States and/or other countries. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. All other trade names are either registered trademarks or trademarks of their respective holders.