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HP and Philips Develop New Copy Protection Technology for Direct Digital Broadcast Recording

Applied to DVD+R/+RW, technology enables direct recording of "Broadcast Flag" content from digital television signals
PALO ALTO, Calif., and AMSTERDAM, The Netherlands, March 2, 2004

HP and Philips (NYSE:PHG) today announced their joint development of a new copy protection technology designed to enable direct recording of “Broadcast Flag” content from digital television signals. The innovative technology is designed to enable protected digital recordings of digital broadcast television according to the rules adopted by the U.S. Federal Communications Commission in its recent Broadcast Flag ruling.(1)

Through the FCC ruling, broadcasters will in the future have the opportunity to include additional information called a “Broadcast Flag” in their transmissions to protect the content from indiscriminate retransmission over the Internet. The HP and Philips technology has been submitted in the first round of filings to the FCC in order to be among the first technologies approved for the recording of content marked with the Broadcast Flag.
Furthermore, it is designed to enable protected direct digital recordings for copy-once in unidirectional digital cable products(2) on new discs for DVD+R, DVD+RW and DVD+R Double Layer.

A key element of the new HP and Philips technology is that the new discs are expected to be used in both future products that meet the Broadcast Flag content protection requirements, as well as in today’s DVD players and DVD+R/+RW recorders(3). These new discs may be used to record all broadcast flag modes. The discs are designed to use the same manufacturing technology in use today so the cost to manufacture the discs is expected to remain the same.
Designed to be used with the DVD+R/+RW format, the technology can be applied to other recording formats. The security elements in the system are designed to be renewable, helping ensure long-term effectiveness and robustness.

“This technology is another example of HP’s commitment to protecting digital content,” said Vikki Pachera, vice president, Alliances and Business Development, HP. “HP is working with both consumers and our industry partners to provide avenues for consumers to lawfully record and interact with digital content – while still enjoying a positive digital experience.”

“By implementing this system we once again underline the inherent flexibility of DVD+R/+RW as the only DVD recording format that fully meets the needs of both industry and consumers,” said Cesar Vohringer, chief technology officer, Philips Consumer Electronics. “With this technology we help protect the rights of the content owners and help provide the consumer with a safe choice that should help ensure the DVD recording experience both today and in the years to come.”

HP and Philips’ new technology already has generated support from a variety of industry leaders and DVD+R/+RW partners, including drive, software, independent software vendors and chipmakers. Its robust cryptographic protection and competitive license conditions offer unique benefits to both the electronics and content industries.

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 EUR 29 billion in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 164,500 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the last four fiscal quarters, HP revenue totaled $74.7 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

(1) Scheduled to be introduced in July 2005.

(2) Subject to approval by CableLabs as a one generation copy protection technology for unidirectional digital cable products.

(3) Protected recordings will play only on DVD-players that are enabled with this technology. Non-protected recordings will play on enabled and legacy DVD-players.


This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2003, and reports filed after the Form 10-K. HP assumes no obligation and does not intend to update these forward-looking statements.

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