PHILIPS REPORT TWO BILLION EURO GAINS

ROYAL Philips Electronics fourth quarter 2000 earnings will include one-time after tax gains of approximately Euro 2.2 billion in total.
Following the completion of the three-way merger between Vivendi, Seagram and Canal Plus, all of Philips 47,831,952 shares in Seagram have been exchanged for 38,265,561 Vivendi Universal shares. This represents approximately 3.5 per cent of Vivendi Universal’s common shares. As a result of the exchange, Philips will report an after tax gain of approximately Euro 1.1 billion.
Philips have agreed that they will not dispose of any Vivendi Universal shares for a period of 90 days after completion of the merger.
The merger between Philips’ IT subsidiary Origin and Atos of France, which was recently completed, has resulted in a tax free gain of approximately Euro 1.1 billion. Philips holds approximately 49 per cent of the shares in the new company Atos Origin.
(CD)