1999-05-27 ,
Business News From Philips Semiconductors

Royal Philips Electronics (NYSE:PHG) today announced that the antitrust authorities in Germany have notified Philips that it may proceed with its $21.00 per share cash tender offer for all of the outstanding shares of VLSI Technology, Inc (NASDAQ:VLSI). In addition, Philips, VLSI and relevant authorities of the United States government have reached agreement on arrangements to address national security concerns relating to Philips' ownership of VLSI.

Subject to the other conditions of Philips' Offer being satisfied, Philips expects to close its offer on the currently scheduled expiration date of 12:00 midnight, New York City time, on Tuesday, June 1, 1999.

For further information:
Philips Media Relations
Jeremy Cohen, tel. +31 20 59 77213, email:  Jeremy.Cohen@philips.com