1999-05-12 ,
Business News From Philips Semiconductors

Royal Philips Electronics (NYSE:PHG), today announced that it is extending the expiration date of its $21.00 per share cash tender offer to acquire all of the outstanding shares of VLSI Technology, Inc. to 12:00 midnight, New York City time on Tuesday, June 1, 1999, unless the tender offer is further extended. At the close of business on May 11, 1999, approximately 2,370,000 shares of VLSI's common stock had been validly tendered and not withdrawn pursuant to Philips' tender offer. The tender offer was scheduled to expire at 12:00 midnight, New York City time, on Friday, May 14, 1999. The expiration date was extended in order to allow for the resolution of the regulatory issues described below.

Philips and VLSI are discussing arrangements with relevant United States authorities to ensure that Philips' acquisition of VLSI would not present national security concerns based on VLSI's government contracts. Though no assurance can be given, Philips expects to reach such arrangements.

In addition, after completing collection of information about VLSI's business, Philips determined that it is required to make an antitrust filing in Germany. Accordingly, Philips intends to make such a filing on May 17, 1999, as to which a 30-day waiting period applies. Although there can be no assurances that its request will be granted, Philips will request that the waiting period terminate on May 31, 1999.

For further information:
Philips Media Relations
Jeremy Cohen, tel: +31 20 59 77213