Philips and MyWeb Showcase Internet TV Prototype for China

SAN FRANCISCO / Philips Institutional TV, a Royal Philips Electronics PHG company, and MyWeb MYWB unveiled a new product-concept today which combines a set-top box, a TV portal and a television set. The new product is aimed at the rapidly growing Chinese Internet market. At present, China has over four million Internet users, but the number is expected to grow to 27 million by 2003.

The new product integrates MyWeb's set-top boxes, which are widely used internationally, with Philips television sets. MyWeb TV users will no longer need computers or any other devices to access the Internet, just their new MyWeb TV sets. This is significant because only 10% of the Chinese population intend to buy a PC within the next two years. But, three times as many people are planning to buy a new color TV. A television set with an Internet access is therefore a very lucrative proposition.

MyWeb TV looks like a standard TV, but with the extended Philips remote control, that allows the user to both operate the TV and navigate on the Internet. Upon switching to Internet-mode, the user will be first directed to the MyWeb TV portal, that provides a menu of all of the available interactive services. MyWeb's TV portal is already the fastest growing Web portal in China, and is expected to be the sixth most visited Internet site by the end of the year. Today's announcement should accelerate its growth even further, as more and more people are automatically directed to MyWeb's Web TV portal.

"We are very excited about the prospects for MyWeb TV. There is a tremendous demand for Internet access in China, but our primary focus will be on those markets that benefit most from the integrated concept. We expect these Internet-ready TVs to become increasingly popular, not just among consumers but especially among schools and hotels. MyWeb TVs can quickly meet the growing demand for Internet access while minimizing costs to users," explains Choy Ming Sang, general manager of Philips Institutional TV.

For Philips, an international leader in the Institutional TV and technology markets, MyWeb TV is the latest step in providing added functionality to TVs. The company is fully exploiting the 'open interface professional TV' concept.

"Our TV portal, widely acknowledged as the most rapidly growing portal in China, provides localized content and applications that serve the needs of Chinese consumers. We believe that the synergy of this new versatile MyWeb TV with its embedded Internet functionality will enable us to reach a dominating position in the hospitality environment as well. MyWeb TVs will require minimum investment from hotels, while allowing the hotels to immediately begin generating revenues to recover their investments," adds Danny Toe, chief operating officer of MyWeb .

About MyWeb

MyWeb is a leading provider of Internet lifestyle services. In markets such as China, MyWeb offers consumers access to MyWeb Online Service (MOS) -- a TV portal for news, education, finance, entertainment and other lifestyle content -- through their televisions using MyWeb-branded-set-top boxes as an affordable alternative to personal computers. MyWeb is headquartered in San Francisco, with operational and representative offices in Singapore, Malaysia and China. T.S. Wong, the company's CEO, maintains his principal office in Kuala Lumpur for ready access to Asia's emerging markets. More MyWeb information can be found at .

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies. It is also Europe's largest, with sales of US$ 33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors and one-chip TV products. Its 228,800 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics, and IT services. Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at .

The statements made in this news release may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. MyWeb 's (MyWeb) general risk factors include, but are not limited to, substantial financial requirements, the development of effective internal processes and systems, the attraction and retention of high-quality employees, changes in the overall economy, regulatory policy, the mix of products and services offered in its target markets, and other risk factors detailed from time to time in MyWeb's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. MyWeb assumes no obligation to update information contained in this news release. Merger Communications (Merger) and Ogilvy PR (Ogilvy) are PR firms employed by the Company. The statements and opinions presented here represent the views of the Company. Merger, Ogilvy and the Company believe that all information in this release herein is accurate of complete. Merger may have a long position in the securities of companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.

Technology Technology

Philips is committed to bringing the latest Television technologies and designs to the hospitality industry. For over 45 years, Philips has been a leader in providing the latest in television and entertainment products. With innovative products like the Flat TV plasma panel, HDTV, and Digital Widescreen TV, Philips provides cutting edge technology for use with interactive services and entertainment systems.