Philips in $5 bn deal with Dell

Royal Philips Electronics of The Netherlands singed a $5 billion contract to

supply Dell Computer with an array of key electronic components such as CRTs and

flat-panel displays, storage devices such as CD-ROMs, and "connectivity

devices'' capable of creating local wireless networks.

The devices will be delivered over a five-year period. As part of the deal,

Dell, will also sell Philips-branded peripherals such as web-cams. Philips CEO

Gerard Kleisterlee said the agreement was "positive - not only in terms of

technology, but also in improved marketing, especially in the US.''

The two companies will also collaborate on technology planning, marketing,

and optical-storage standards. The Dell deal is the third major supply alliance

for Philips following similar arrangements with AOL/Time Warner and Nike