LONDON (Standard&Poor's) June 22, 2006--Standard&Poor's Ratings Services said today that its ratings and outlook on Dutch diversified technology group Koninklijke Philips Electronics N.V. (Philips; A-/Stable/A-2) are unaffected by the group's announcement that it intends to reduce its ownership to a minority stake in its Semiconductors division before the end of 2006. Philips intends to undertake this via an IPO or the sale of shares in the Semiconductors division to financial investors, while continuing to evaluate industry consolidation opportunities in the semiconductor sector. The creation of a separate legal entity for Philips' Semiconductors division could open alternative strategic options--and lead to a reduction of business risks and volatility in Philips' results. This could have positive implications for
