Royal Philips Electronics Implements Lotus Collaboration and

ORLANDO, Fla., Jan. 15, 2001 -- At Lotusphere Orlando 2001, IBM's Lotus Development Corp. today announced that Royal Philips Electronics, a global electronics manufacturer, is the latest customer to leverage it worldwide Notes/Domino infrastructure with knowledge management (KM) building blocks from Lotus that includes an array of familiar and recently announced Lotus collaboration and knowledge management products, including a balanced scorecard solution to deliver on strategy.

Philips has redesigned and standardized its messaging and collaboration infrastructure using Lotus Notes & Domino, is leveraging the portfolio of other valuable Lotus collaboration technologies, such as Sametime and QuickPlace. LearningSpace is also helping Philips deliver education to its employees, bringing the company to a higher level of efficiency and productivity.

Philips has expressed a great deal of interest in the extensive, feature-rich capabilities of Lotus K-station and Lotus Discovery Server, together referred to as the Lotus Knowledge Discovery System, to serve as the backbone of its next generation KM infrastructure.

"We needed to implement a single, integrated infrastructure that would enable our more than 600 sites to collaborate more effectively in the increasingly competitive e-business economy," said Frank Butstraen, vice president of corporate IT for Royal Philips Electronics. "We chose to utilize the best-of-breed technologies Lotus consistently offers the marketplace, which will enable us to solve everyday business problems more efficiently and cost effectively."

"We have been working closely with Philips for several years and are pleased with the positive results they have experienced while using our industry-leading collaborative technologies," said Scott Cooper, vice president of knowledge management products, Lotus Development Corp.

"Philips' interest in Lotus' KM offerings proves customers understand the importance of collaboration and knowledge management which enable individuals and teams dedicated to the same business objectives to solve everyday business problems by fostering knowledge."

Philips turned to Lotus to completely redesign its messaging and collaboration infrastructure, using Lotus Notes & Domino, QuickPlace and Sametime technologies. To date, the company has more than 100 active teamrooms enabling employees to collaborate beyond the boundaries of the company intranet. Once the company had redesigned its messaging infrastructure and began leveraging the systems' collaborative capabilities, the next step was to help users gain quick and easy access to information and give them the tools need to take action. Recently, Philips began leveraging Lotus' existing KM solutions by implementing Domino.Doc as a knowledge repository and Workflow as a means to organize that information and integrate it smoothly into the daily lives of users. The electronics company is also eager to complement its manual education methods by using Lotus online learning solution, LearningSpace. LearningSpace delivers education to Philips' employees worldwide, allowing for a higher level of efficiency and productivity. With the new infrastructure in place, Philips will be better equipped to harness its intellectual capital and to reuse this valuable information by-product to increase customer responsiveness, foster product innovation and gain a competitive edge.

To support Philips' objective of creating optimal shareholder value, Philips is deploying the Lotus Business Balanced Scorecard solution, leveraging the Diamond [Domino] infrastructure. "Our aim for adopting the balanced scorecard solution is to consistently communicate strategy deep down into Philips' 80 businesses and support more than 10,000 managers with tools to turn strategy into action by sharing knowledge, aligning actions, monitoring progress and learning," said Peter Geelen of Philips Corporate Control, responsible for the project." Supplied by Lotus, the solution is developed by Lotus Premium ISV Partner, Show Business, Euro Beacon Award winner and currently one of the top 3 in the "Vision 100" for knowledge management, a UK ranking that recognizes applied vision.

About Lotus Development Corp.
Lotus Development Corporation, founded in 1982, is a subsidiary of IBM Corporation. Lotus sets the standard for truly innovative software products and services that reflect the company's unique understanding of the new ways in which individuals and businesses must work together to achieve success. Lotus is redefining the concept of conducting business through practical knowledge management, e-business and other ground-breaking ways of connecting the world's ideas, thinkers, buyers, sellers and communities via the Internet. Lotus markets its products in more than 80 countries worldwide through direct and extensive Business Partner channels. The company also provides numerous professional consulting, support and education services through the Lotus Professional Services organization.

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Lotus, Lotusphere, Lotus Notes, LearningSpace, Domino.Doc and Domino Workflow are registered trademarks and Lotus Discovery Server, Lotus K-station, Domino, Notes, Sametime and QuickPlace are trademarks of Lotus Development Corporation. IBM is a registered trademark of IBM Corp. All other trademarks are owned by their respective companies.

EDITOR'S NOTE: All news releases and related information issued at Lotusphere Orlando 2001 are available on the Internet, via the Lotus Development Corp. press room at http://www.lotus.com/pressroom.

A copy of this release and other company information is also available via fax by dialing 1-800-57-LOTUS within the U.S. and Canada or 201-946-2336 outside the U.S. and Canada.