1999-04-19 ,
Press Releases From Customers/Partners

NAB, LAS VEGAS, April 19, 1999 - Philips Digital Video Systems has been chosen by UPC -Europe's largest, privately owned broadband services company, to supply digital cable set-top boxes, head-end and conditional access equipment for the European market. This major order marks the launch of Philips' new generation of digital cable set-top boxes in Europe. These Set Top Boxes will be the first products to use the Microsoft^® Windows^® CE based TV application software.

UPC plans to launch digital services in five European countries -Austria, Belgium, Norway, France and the Netherlands- by mid 2000. In addition to Pay-TV services, UPC will provide Internet services, e-mail, e-commerce and other interactive applications directly to the home. UPC foresees an initial requirement of 2 million Set Top Boxes.

Philips Digital Video Systems supplies digital head-end systems and Set-Top Boxes based on different technologies to major service operators of cable, satellite and terrestrial networks worldwide. The digital cable Set Top Boxes Philips will supply to UPC are based on Philips' CryptoWorks™ conditional access system and Microsoft's Windows-CETM software. The Set Top Boxes are equipped with Philips' powerful TriMedia™ multimedia processor and with a DOCSIS MCNS high-speed cable modem for interactive services.

Commenting on their decision, UPC's CEO, Tim Bryan, said: "Philips Digital Video Systems has long experience in the analog and digital Pay-TV business, and knows that 'time-to-market' and 'cost-effectiveness', as well as 'open platforms', are crucial for the industry's growth. Their long experience in the required technologies and end-to-end solutions was key in reaching our decision, demonstrating that Philips it at the forefront in this technology."

"This is a highly significant step in bridging the gap between the PC and Internet-centric technology, and the traditional broadcast TV-centric entertainment. It signals the beginning of a whole new era." said Steve Perlman, president of WebTV Networks, Inc. "We are pleased to extend the successful collaboration with Philips in WebTV products to developing UPC's broadband interactive Set Top Box and conditional access system."

Rob van Oosterbrugge, CEO of Philips Digital Video Systems, added, "This landmark decision is a major step forward in the European cable industry and is very significant for Philips, which is keen to demonstrate its commitment to meeting the demands of the European cable market and to delivering its technology to the cable industry at large."

About UPC

Headquartered in Amsterdam, UPC is one of the most innovative broadband communications companies in Europe and owns and operates the largest pan-European group of broadband communications networks. UPC provides cable television, telephony, high speed Internet access and programming services in ten countries across Europe and in Israel. As of February 28, 1999, UPC's systems passed approximately 4.8 million homes with 3.5 million basic cable subscribers, of which approximately 500,000 takes expanded tier of service. IN addition UPC had 92,6000 telephone access lines and 20,500 carrier select customers, as well as 32,335 broadband Internet access subscribers. UPC completed and IPO in February 1999 and its shares are listed on the Amsterdam Stock Exchange ("UPC") and NASDAQ ("UPCOY"). UPC is a consolidated subsidiary of United International Holding (UIH) (NASDAQ: "UIHIA"). Microsoft Corporation has an interest of approximately 7.8% in UPC.

About Philips

Philips Digital Video Systems is a division of Philips Electronics North America Corporation. Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of US$33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and on-chip TV products. Its 233,700 employees in more than 60 countries are active in areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at  www.news.philips.com.