Philips Lighting North America Statement: In Response To Various And Erroneous Media Reports About The Retail Cost Of The L-Prize Light Bulb

“We are proud to have been a part of the L Prize, a competition that pushed the lighting industry to new limits and that tested a technology still in its infancy,” stated Ed Crawford, CEO of Lamps, Lighting Systems and Controls for Philips Lighting North America. “The L Prize served as a catalyst to develop highly efficient LEDs and sparked a race to market a high quality 60-Watt alternative to the 60-Watt incandescent. As a result of this newly developed technology, Philips was the first company to market a commercially viable 60-Watt LED alternative. Consumers are now benefitting from these advances in lighting technology by experiencing several available LED lighting options in the marketplace that can trace their roots to the L Prize.”

“The ultimate price – versus the MSRP – of the L Prize bulb will arrive through a partnership between the manufacturer and utility partners across the country. The target price of $22, as originally outlined in the competition parameters, will be achieved through utility rebates of up to $30 through in-store purchases once the L Prize bulb is available to consumers next month.”

“At that time, consumers will have access to the most energy-efficient and brightest bulb available – lasting more than 30,000 hours and saving consumers roughly $165 over the life of the bulb.”

Additional facts for the record:
  • The technological difference between the L Prize and the current available Philips 60 watt bulb is significant. There is a higher degree of complexity in achieving energy savings of 10-Watt usage (L Prize) from 12.5-Watt (current Philips AmbientLED on the market), as well as achieve higher lumens performance of 900 lumens (L Prize) to 800 lumens (current Philips AmbientLED), and extending the life cycle from 25,000 hours (current Philips AmbientLED) to 30,000 hours (L Prize).
  • Philips was the first and only company to officially submit and complete L Prize testing for a 60-Watt equivalent. Since the September 2009 submission, the Philips L Prize bulb has undergone comprehensive evaluation, including performance testing conducted by independent laboratories, field assessments with utilities and other partners, long-term lumen maintenance testing and stress testing under extreme conditions.
  • Every year it is estimated that more than 425 million 60-Watt incandescent light bulbs are sold in the United States alone, representing approximately 50% of the domestic incandescent light bulb market. The traditional incandescent that has been the market staple for more than a century, but only uses 10% of its energy output for light and wastes the other 90% as heat. The DOE recognized that energy efficient alternatives need to made readily available and become the new standard for Americans.
  • The L Prize competition was opened to the lighting industry in 2008.
  • Cost savings comparison (cost of bulb + cost of energy based on $.11 per kWh):
    • L Prize $82 (before any rebate)
    • Incandescent $213
    • Halogen $186

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity.” Headquartered in the Netherlands, Philips employs approximately 122,000 employees with sales and services in more than 100 countries worldwide. With sales of EUR 22.6 billion in 2011, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at .

Copyright Business Wire 2010