Philips Electronics announced equity investment in TiVO, Inc.

Agreement Reinforces Commitment to Philips Personal TV™

PALO ALTO, Calif., April 28, 1999 - Royal Philips Electronics announced today that it has made a strategic investment in TiVo, Inc., the Sunnyvale, Calif.-based leader in the development of Personal TV services. Terms of the investment have not been disclosed.

"Our investment in TiVo reflects our commitment to Personal TV in general, a category which we think will fundamentally change the way people view television," said Roel Pieper, Executive Vice President, Philips Electronics. "Research suggests that consumers want a more personal and convenient viewing experience. After reviewing the various alternatives, we selected TiVo because it delivers the best solution available today for the delivery of Personal TV content and services. The TiVo service is as easy-to-use as pushing a button on your remote control."

Designed to put the consumer in control of their television experience, Personal TV offers viewers the ability to watch what they want, when they want as well as gives them the ability to pause live television. With the TiVo service, the viewer can record their weekly favorites using a season pass and rate what they enjoy watching using a simple "thumbs up" and "thumbs down" on the remote control. Based on the viewer's ratings, TiVo searches through more than 100,000 programs that are broadcast each week, uniquely recording favorite programs and making recommendations on other programs of interest. At the same time, Personal TV will also create new opportunities in the area of E-Commerce through a television portal. By creating a direct link with viewers, Personal TV will make it possible for consumers to make purchase decisions or learn more about specific products directly via their television. Personal TV can add a new level of interactivity and ease of use to home shopping applications.

"Philips' partnering with TiVo brings the power of a worldwide brand leader to the delivery of this revolutionary new service" said Mike Ramsay, founder and CEO of TiVo. "Philips is a leader in the innovation and delivery of new technologies. Knowing that TiVo is backed by one of the largest consumer electronic manufacturers in the world secures the position of the Personal Television category."

Philips and TiVo have agreed to collaborate on a range of products, the first of which is a stand-alone Philips Personal TV Receiver with TiVo service for the U.S. For more information on this product, consumers can call 1-877-FOR-TIVO or visit the web sites or Philips has agreed to market and distribute this device in the U.S. through its retail channels.

Philips, DIRECTV and TiVo have previously announced that they will collaborate on the development and marketing of a Philips-branded DIRECTV System receiver that will allow viewers to get both DIRECTV® programming and the TiVo Personal TV service in a single set-top box. The DIRECTV digital television entertainment service has more than 4.8 million subscribers in the U.S.

Initial Philips Personal TV products will be introduced in the United States. Philips has agreed to work with TiVo to explore opportunities in other markets including Europe.

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of over 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 233,700 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 (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at News about Philips can also be found on the U.S. web site

About TiVo

TiVo™, headquartered in Sunnyvale, Calif., is the originator of personal television. The TiVo service allows consumers to take control of their television viewing by providing the ability to pause, rewind, instant replay and playback in slow-motion any live television broadcast. As part of TiVo's easy-to-use service and patented consumer electronics technology, viewers can time-shift their favorite television shows and create a customized television lineup for anytime viewing. The company was founded in August 1997 by former Silicon Graphics senior vice president Michael Ramsay and vice president James Barton, both of whom have been instrumental in earlier generation efforts of interactive video-on-demand systems and Hollywood special-effects technology. TiVo's board of directors includes Stewart Alsop of New Enterprise Associates, Geoff Yang of Institutional Venture Partners and WebTV founding director Randy Komisar. The stand-alone TiVo/Philips set-top box is currently available via TiVo's toll free number at 877-FOR-TIVO or on the web at