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• Centrally negotiated agreements with major suppliers will facilitate procurement of technology solutions by NHS purchasers, and provide favourable, across-the-board financial and contractual terms.

Cambridge, United Kingdom, 09 October, 2002: Philips Business Communications (Philips), the division of the Royal Philips Electronics Group (AEX: PHI, NYSE: PHG) that focuses on Information & Communications Technology (ICT) solutions, has been awarded contracted supplier status by the NHS Purchasing and Supply Agency. The selection, which forms part of the agency’s national NHScat-IT initiative, provides a rubber-stamp endorsement of the company's ICT offerings for the healthcare sector, highlighting Philips as a contracted supplier for voice and data communications and advanced networking solutions for healthcare institutions. The initial Framework Agreement has been awarded for three years, with annual reviews and the option to extend.

The NHS Purchasing and Supply Agency contracts across England for products and services that are strategically critical to the NHS. Wherever possible it uses its aggregated purchasing power to negotiate more favourable contractual and financial terms than would otherwise not necessarily be agreed for individual projects. It works with approximately 350 NHS trusts and health authorities across England, managing national purchasing contracts and influencing an annual NHS spend on goods and services of over £2.6 billion. The Agency’s NHScat-IT initiative is designed specifically to facilitate how healthcare procurers source technology and communications solutions to support the efficient day-to-day running of their institutions.

Philips has been contracted to provide both traditional and converged networking and communications solutions as well as systems integration and support services, including design, project management, implementation, training and ongoing management and maintenance. The company is one of only 37 technology suppliers to be selected by the Agency, all of which had to demonstrate a proven implementation track record. Each Framework Agreement awarded enables healthcare institutions and other public sector bodies (local government, police authorities, schools and colleges and utility companies) within England and Wales to place orders with any of the chosen suppliers without the usual lengthy tendering, evaluation and negotiation process.

Ian Hyde, Marketing Manager at Philips in the UK, said, "This selection is great news for Philips and a welcome endorsement of our dedicated healthcare focus. By evaluating suppliers to ensure they are of the necessary calibre to supply solutions to the public sector, and negotiating favourable terms for payment, support and implementation, the NHS-cat IT initiative will undoubtedly save healthcare institutions both time and money. For us it streamlines the tender and evaluation process and makes it easier to provide these institutions with the sophisticated communications technologies they need to enhance their medical services, improve efficiency and reduce costs.”

To provide easy access to approved suppliers the NHS Purchasing and Supply Agency web site has been extended to provide links to dedicated sites of each company. These specially-created sites provide the specific purchasing information required by NHS procurers, in relation to products and services being provided and further company details. Interested NHS purchasers should click through to the Purchasing Contracts Catalogue on the NHS Purchasing and Supply Agency web site on NHS-net

Notes to the Editor:

Please note we have NHScat-IT branding images available that can be sent electronically – please contact Sue Friday on 01634 666693, or at, to request.

The NHS Purchasing and Supply Agency was established in 2000 as an executive agency of the Department of Health tasked with acting as a strategic advisor to the NHS on supply issues. Its role is to act as a centre of excellence in purchasing and supply matters, and to facilitate best practice and effective purchasing decisions by the NHS. As an integral part of the Department of Health the agency is in a key position to advise on policy and the strategic direction of procurement, and its impact on healthcare, across the NHS.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 32.3 billion in 2001. It is a global leader in colour television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring and one-chip TV products. Its 184,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at

For further information please contact:

Richard Ferguson

Philips Business Communications

Tel: + 44 (0) 1223 468000

Fax: + 44 (0) 1223 468490


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