SOURCE: Irdeto

February 16, 2006 06:00 ET

Philips to Transfer Its CryptoWorks Conditional Access (CA) Activities to Irdeto

Irdeto Strengthens Its Market Position and Reconfirms Its Place as a Top-Tier Content Security Player; Philips to Continue Pursuing Open-Standards Digital Rights Management (DRM)

AMSTERDAM, THE NETHERLANDS -- (MARKET WIRE) -- February 16, 2006 -- Royal Philips Electronics (NYSE: PHG) (AEX: PHI) and Irdeto, a world leader in content security and a subsidiary of multinational media group Naspers (NASDAQ: NPSN) (JSE: NPN), today announced that they have reached preliminary agreement on the terms of the transfer of Philips' conditional access (CryptoTec) business unit to Irdeto. No financial details of the transaction were disclosed.

Philips' CryptoTec business unit develops and sells content protection (more generally known as "conditional access") products such as advanced security systems for cable, satellite, terrestrial and IP networks under the name 'CryptoWorks'. In addition to conditional access for digital TV, Irdeto also offers software-based content security for IPTV services as well as multiple DRM and conditional access products for premium mobile content and mobile TV (DMB and DVB-H).

Hans Streng, CEO, Philips Digital Networks said: "The conditional access industry is moving towards consolidation, and Philips has been looking into various options for the CryptoTec business. Reaching this agreement with Irdeto is considered to be the solution that offers the best future-proof direction for customers and staff. CryptoTec will thus find a new home where conditional access is the absolute core of the business. Philips will continue focusing on promoting open-standards DRM."

"With the acquisition of Philips' CryptoTec, Irdeto will strengthen its position in the pay media industry, and will now have over 300 customers on six continents. Customers using CryptoWorks will continue to be fully supported and in addition to this can now also benefit from a broader choice of content security solutions," said Graham Kill, CEO of Irdeto.

The acquisition will also enable Irdeto to further strengthen its position in China, where it currently already plays a market-leading role in securing China's digital television migration, with nearly 50 customers in that country.

Philips CryptoTec employees will transfer to Irdeto when the transaction is completed, which is expected within the next months, subject to customary regulatory clearances and procedures.

About Irdeto

Irdeto, headquartered near Amsterdam, the Netherlands, is a subsidiary of a multinational media group Naspers (NASDAQ: NPSN) (JSE: NPN), is a world leader in content security, and provides comprehensive solutions for digital content protection in Digital TV, IPTV and Mobile environments. The company's support, sales and R&D offices are located worldwide with corporate headquarters near Amsterdam, the Netherlands. Irdeto offers both hardware- and software-based solutions. The company works with an impressive list of leading industry partners to create end-to-end solutions for any pay-media business. Irdeto's goal is to help operators increase content revenue by offering best-of-class security solutions supporting a wide range of revenue models. With the acquisition of Philips CryptoTec, Irdeto now has more than 300 customers around the world. To contact your regional office or retrieve further information on the company, please visit www.irdeto.com.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG) (AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 30.4 billion in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

Contact Information

  • For further information please contact:

    Madelon Kaspers
    Corporate PR & Media Manager
    Irdeto
    Tel: +31 23 556 2218
    Email: Email Contact

    Monica Mulkens
    Philips Digital Networks
    Communications Department
    Tel +31 40 27 33615
    email Email Contact