Investments and expansion

• "We are currently investing more than 2.5 times as much as we did in 1999," said Arthur van der Poel, Philips President and CEO. (M2 Presswire, June 22, 2000)
• "Royal Philips to pay $1 billion for 60 Percent Stake in Medquist Royal" (New Jersey Law Journal, June 5, 2000) Medquist provides healthcare management services.
• Philips announced that it will make one of the biggest investments in the history of the Czech Republic, building a new TV screen factory, receiving the largest incentive package ever given by the government. (The Prague Pst, April 5, 2000)
• Philips will open two laboratories in China. (Business Wire, April 6, 2000)
• Philips bought IBM's MiCRUS Semiconductor operation in East Fishkill, New York with plans to invest $100 million to upgrade the facility.
• Philips made a $250 million expansion to its plant in Nijmegen, The Netherlands. This is the largest semiconductor plant in Europe. (M2 Presswire, November 30, 1999)
• "Royal Philips Electronics will pay at least $180 million over 20 years to put its name on the new pro basketball and hockey arena in Atlanta. Philips Arena will feature the European company's lightbulbs, video monitors, and a 3,000 square foot Philips retail store, according to industry reports." (Star Tribune, Minneapolis, MN, September 12, 1999).
• This "naming rights" deal is the 2nd largest in the U.S. The largest deal was by American Airlines for the Dallas arena for $195 million.

• " Ottawa, Ohio - Philips Display Components said Tuesday it will go ahead with plans to move much of its television and picture tube production in this northwest Ohio city to Mexico, eliminating 1500 jobs at a plant that is the city's largest employer." (Dayton Daily News, June 21, 2000 CITY EDITION)
• "Philips told employees it could hire a Mexican worker for up to $7,000 a year including benefits. The average cost per employee with benefits at the Ottawa facility is between $40,000 and $50,000, said John Benjamin, the president of the International Brotherhood of Electrical Workers Local 1654" (Associated Press, May 1, 2000)

• Semiconductor and components units are pushing for driving changes in corporate structure of Philips "in response to major shifts taking place in their own markets". (Electronic Buyers' News, April 17 2000)

• Getting rid of less profitable businesses and closing plants (Kiplinger's Personal Finance Magazine, May 2000)
• "keeping manufacturing costs down by shifting some plants to low-wage regions of the world." (Electronic Buyers' News, May 1, 2000)
• Investing: "To ensure the success of its makeover, the Philips unit this year will double its capital spending to about $600 million and explore acquisition opportunities, Kleisterlee said." (Electronic Buyers', May 1, 2000)

• Philips is organized into 7 divisions: Consumer Products, Professional Products and Systems, Lighting, Components, Semiconductors, Origin (technical assistance), and Miscellaneous

• In 1996 Philips began a major restructuring of the corporation (downsizing), selling businesses such as Polygram Records, Philips Car Systems, and others.
• "In the last decade Philips has cut out deadweight-eliminating jobs and selling struggling businesses-in order to remain competitive. (In the process, chairman Cor Boonstra has acquired the "Godfather"esque nickname "Corleone".) Boonstra isn't done yet; Philips plans to close one-third of its plants by 2002." (Hoover's Company Profile Database - World Companies 2000

• Cor Boonstra, Philips President
• Arthur van de Poel, chief executive, Philips Semiconductors
• Theo Classen, Philips Semiconductors' chief technology officer
• Gerard Kleisterlee, president and chief executive of Philips Components
• Stuart McIntosh, Philips Semiconductor executive vice president and chief operations officer