Philips to acquire Intermagnetics

The Board of Directors of Intermagnetics has unanimously approved the proposed transaction. Completion of the transaction is subject to regulatory approval, to the terms and conditions of the merger agreement and to the approval of Intermagnetics' shareholders. Intermagnetics develops, manufactures and markets high-field superconducting magnets used in Magnetic Resonance Imaging systems and is viewed as the technological innovator in this market. The acquisition of Intermagnetics will strengthen Philips' position in the key market of Magnetic Resonance Imaging. It will allow Philips to significantly rationalize its supply chain, to enhance its competitive position and to participate in the fast growing market for RF coils. Philips anticipates the transaction to be accretive to its operating margin towards the end of 2007.