ATLANTA and SOMERSET, N.J., May 31, 2002 – The Home Depot (NYSE:HD), the world’s leading home improvement retailer, and Royal Philips Electronics (NYSE: PHG), the world’s largest lighting manufacturer, today announced that Philips will be the retailer’s exclusive supplier of branded light bulbs.
“Philips was selected for its product innovation and brand awareness as well as its delivery reliability and its dedication to environmental conservation,” said Jerry Edwards executive vice president of merchandising, The Home Depot.
“We are excited about the potential of this partnership,” said David C.M. Hamill, president and chief executive officer of Philips Lighting globally. “This alliance exemplifies how our marketing, innovation and delivery reliability forge new opportunities with our largest customers. We expect the agreement to enhance The Home Depot’s business and our own.”
“The Philips’ agreement is a major indication of the many ways we are constantly improving our merchandising mix to match our customers’ changing needs,” said Edwards.
For The Home Depot, this unique partnership offers several major benefits. As the largest global lighting company, the Philips alliance promises to benefit the retailer as it considers international opportunities. Philips’ comprehensive training also provides Home Depot personnel with superior knowledge in lighting. Philip’s research-and-development efforts represent one of the largest ratios of sales dollars to R&D spending in the world.
“We believe our demonstrated innovation and ability to drive product mix and profitability through category management also were major factors in this historic partnership,” said Larry Wilton, president and CEO Philips Lighting North America. “We have pioneered the growth of new lighting categories, from CFLs and household halogen bulbs to ALTO® low-mercury fluorescent lamps.”
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world’s biggest electronics companies and Europe’s largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 186,000 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 www.news.philips.com
About The Home Depot
Founded in 1978, The Home DepotÒ is the world’s largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2001 sales of $53.6 billion. The company employs more than 296,000 associates and has 1400 stores in 49 states, Puerto Rico, seven Canadian provinces, and Mexico. The company for the second year in a row was named sixth Most Admired Company in America by Fortune magazine, which has also ranked it as America's Most Admired Specialty Retailer for eight consecutive years. Its stock is traded on the New York Stock Exchange (NYSE:HD) and is included in the Dow Jones Industrial Average and Standard & Poor's 500 Index.