Philips Joins Taiwan's Proximity Mobile Transaction Service Alliance

12/20/2004 - Royal Philips Electronics (NYSE: PHG, AEX: PHI) announced that its Semiconductors division has joined Taiwan's Proximity Mobile Transaction Service Alliance, an initiative of the Committee of Communication Industry Development within the Ministry of Economics Affairs, ROC. The objective of the alliance is to promote contactless communication and mobile e-payment services by integrating the products and services of industry members such as chip/electronics manufacturers, transportation providers, financial institutions and telecom services vendors.

The alliance will include companies such as Acer, BenQ, Chung-Hwa Telecom, Far EastTone Telecommunication, Taiwan Cellular Corp., Asia Pacific Broadband Wireless Communications Inc., VIBO Telecom Inc., MasterCard International, Visa International and Philips. Taipei Smart Card Co. (TSCC) will be acting as project managers to implement the contactless infrastructure in Taiwan. Philips supports the alliance based on its expertise in Near Field Communication (NFC) technology for contactless transactions, which combines the functions of a contactless reader, a contactless card and peer-to-peer functionality on a single chip.

Beyond developing a contactless mobile transaction business model, the first practical step will include using NFC-enabled mobile handsets on the public transportation system in Taipei. The project will work on the existing MIFARE-based infrastructure - which uses the Easy Card issued by TSCC. Simultaneously, the alliance will work to implement an NFC contactless interface in the retail and banking environments.

Many different technologies and fields of expertise need to be integrated to create a complete mobile business service application. Industry-leading firms within the alliance are providing their technologies and expertise, ranging from core NFC technology, semiconductor system and sub-system modules, through the development of NFC-enabled mobile phones and devices. They will also develop mobile telephone service providers' value added services including e-Wallet, mobile payments and point of sale infrastructure and a software stack supporting a mobile transaction platform together with user interfaces.

"As a major provider of mobile transaction applications in Taiwan, Philips is honored to become a member of the alliance. The biggest technology challenge for mobile business transactions is to ensure the integrity and security of data transmission," said Marconi Jiang, general manager for Philips Semiconductors Taiwan. "Philips' NFC technology and longstanding experience with global smart card systems using Philips' MIFARE® contactless chip technology can help establish a secure mobile transaction environment through the cooperation with other members of the scheme. In the near future, consumers will be able to use public transport, visit a cinema or a concert or go shopping just by using an NFC-enabled mobile phone or PDA. This is the ultimate convenience for the connected consumer."

About Near Field Communication (NFC)
NFC is a combination of contactless identification and interconnection technologies that enable convenient short-range communication between personal electronic devices. It enables people to intuitively connect any two devices to each other to exchange information or access content and services - easily and securely. Combining the functions of a contactless reader, a contactless card and peer-to-peer functionality on a single chip, NFC opens up a wide range of new opportunities for our consumer lifestyles. It is an open interface platform that allows fast and automatic set-up of wireless networks, which also works as a virtual connector for existing cellular, Bluetooth and wireless 802.11 devices.

NFC operates in the 13.56 MHz frequency range, over a distance of typically a few centimeters. NFC technology is standardised in ISO 18092 and ISO 21481, ECMA (340, 352 and 356) and ETSI TS 102 190. NFC is also compatible to the broadly established contactless smart card infrastructure based on ISO 14443 A, i.e. Philips MIFARE technology, as well as Sony's FeliCaTM card.

About Philips' MIFARE technology
Philips' MIFARE is the industry standard for contactless and dual interface smart card and reader technology operating at 13.56Mhz. Operating in full accordance with ISO 14443 A - the international standard for contactless smart cards and readers - the platform consists of chip solutions for pure contactless and dual interface smart cards and reader devices. The diversity of the MIFARE product portfolio covers low- and high-end applications providing customers with a smart identification technology suitable for use in a wide array of design scenarios from transport applications, event ticketing and related applications to high-security applications, such as e-government, banking or secured access control.

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 EUR 29 billion in 2003. With activities in the three interlocking domains of healthcare, lifestyle and technology and 165,600 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

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