December 5, 2017

Philips enhances its clinical informatics portfolio with the acquisition of interoperability provider Forcare

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that it has acquired Forcare, a leading innovator in open-standards-based interoperability software solutions for fast and flawless data flows between medical systems and information sources at the departmental and enterprise levels, as well as Health Information Exchanges (HIEs) [1] across health systems. Forcare and its team will provide highly complementary capabilities for Philips, and will enable Philips to deliver more effective, seamlessly integrated informatics solutions that improve clinical workflow, enhance patient care and optimize enterprise management. Financial details of the transaction were not disclosed.

As hospital and health systems continue to consolidate, the need for seamless enterprise integration is paramount for delivering efficient, quality care. The combination of Philips’ advanced clinical informatics solutions for data (e.g. IntelliSpace Universal Data Manager), workflow (e.g. IntelliSpace PACS), visualization (e.g. Illumeo) and interoperability (e.g. IntelliBridge Enterprise), and Forcare’s complementary interoperability platform will enable Philips to strengthen its leadership in connecting patient information across the health continuum.

“The global rise in hospital consolidation and large regional projects generate a significant increase in large tenders that inevitably require interoperability,” said Yair Briman, business leader Healthcare Informatics at Philips. “The acquisition of Forcare will provide us with critical standards and interoperability expertise to interconnect healthcare information systems, share and exchange clinical data, and offer secure and reliable access to digital health information for medical staff and patients across multiple organizations and care settings.”

“We have a leading position in building bridges between information systems, so that care providers can instantly share clinical results, images and letters,” said Harm-Jan Wessels, CEO of Forcare. “I am proud that our company will become part of Philips with its rich portfolio of clinical informatics solutions and vast global installed base. Joining Philips will accelerate achieving our vision: seamless, open standards-based interoperability in healthcare to empower both patients and care providers.”

Forcare was founded in 2006 and employs approximately 70 employees. The company is headquartered in the Netherlands and has satellite offices in Germany, the UK and Canada. Hospitals, and HIEs in general, around the world are using Forcare’s software to manage their data exchange and streamline workflows.

[1] Health Information Exchange (HIE) provides the capability to electronically move clinical information among disparate healthcare information systems, and maintain the meaning of the information being exchanged (source: http://www.himss.org/library/health-information-exchange/FAQ; accessed December 2017).

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2016 sales of EUR 17.4 billion and employs approximately 73,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

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Forward-looking statements

This release contains 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. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

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