Philips Aims for High-volume Market with New Nexperia MPEG-2 CODEC

12/8/2003 - Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced the launch of the NexperiaTM PNX7200, a single-chip MPEG-2 codec for DVD recording applications. Philips’ Nexperia PNX7200 enables the lowest system-cost solution on the market today, reducing bill of material (BoM) costs by up to 30 percent. Philips also unveiled today its fourth-generation Nexperia reference design targeted for DVD+R/+RW. The reference design, powered by the highly integrated single-chip PNX7200, will provide manufacturers the ability to quickly bring to market reliable, compatible and cost-effective end products.

“DVD recorders will be big in 2004 and will essentially replace the market for video cassette recorders,” said research analyst Adrienne Downey of Semico Research. “Companies such as Philips are providing robust semiconductor technologies that make it effortless for manufacturers to build DVD recorder devices quickly and cost-effectively to meet consumers’ needs.” Semico Research predicts sales of 13.3 million DVD recorders in 2004, compared with just 3.5 million in 2003.

“Beyond replacing the VCR market, the next generation of DVD recording devices will come to serve as the main home-entertainment hub of the Connected Home,” said Jeroen Keunen, general manager, consumer and multimedia, Philips Semiconductors. “Given that seven out of ten DVD+RW video recorders sold in 2003 to date are based on Philips’ Nexperia semiconductor solutions, Philips possesses the expertise to offer complete, feature-rich and industry-proven solutions for the explosive DVD recorder market as well as home entertainment systems of the future.”

Philips’ PNX7200 MPEG-2 codec is the highest integration solution available on the market today. By handling high-quality MPEG-2 encoding, decoding and transcoding on a single-chip, the PNX7200 significantly reduces the BoM costs of the digital board and development time for home entertainment system manufacturers. Besides using advance 0.12 micron process technology, the PNX7200 features integrated progressive scan and the smallest memory footprint of only one SDRAM. The PNX7200 provides improved features for audio and video including adaptive picture sharpness, de-blocking artifact removal, and simultaneous progressive and interlaced output, which results in an enhanced audio/video experience for the consumer.

With the PNX7200 powering the latest Nexperia DVD+RW reference design, Philips is offering a manufacturing-ready solution for the high-volume DVD-recorder market. This marks the fourth-generation reference design solution that offers reliability, compatibility and complies fully with the DVD+RW standard. Philips’ complete reference design offers another step down in system costs, which is critical as the cost of DVD recorders drop to reach mainstream consumer price points. The solution includes the reference design, complete software stack and user interface generation tools. Overall, Philips’ unique DVD recording portfolio includes complete front-to-back solutions for the high-end and mainstream markets, enabling rapid time-to-market for customers to deliver complete recorders.

Philips Nexperia PNX7200 MPEG-2 codec will be in volume production by Q1 2004.

About Royal Philips Electronics
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 166,500 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), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at

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