Philips and BG Medicine Form Alliance for Molecular Medicine Research and Development; Partners to Embark upon Joint Development of Molecular Imaging and Diagnostic Products

Royal Philips Electronics (NYSE: PHG, AEX: PHI) and BGMedicine have established an alliance in the field of Systems Biology.Under the partnership agreement BG Medicine will collaborate withPhilips to develop the next generation of molecular healthcareproducts for application in areas such as molecular imaging andpoint-of-care diagnostics. Key to the alliance is BGM's proprietarysystems profiling technologies that identify biomarker sets associatedwith disease stage, progression and treatment. BG Medicine has grantedPhilips preferential access to certain of its proprietary technologiesand services, and Philips has acquired a minority stake in BGMedicine, which is privately-held and based in Waltham, Massachusetts.

"We are at the dawn of a new era in medicine where technology andbiology are applied in conjunction to create a whole new generation ofapproaches to diagnosis and treatment with improved clinicaloutcomes," said Rick Harwig, CTO of Philips. "The Philips-BG Medicinepartnership brings together the important capabilities and resourcesthat are required to execute our healthcare vision and strategy."

"The convergence of technology and biology creates exciting newopportunities in healthcare," said Pieter Muntendam, MD, President andCEO of BG Medicine. "The partnership announced today between Philipsand BG Medicine provides a strategic foundation and framework for aseries of joint initiatives in molecular medicine focused on importantareas such as cardiovascular disease and oncology."

The advancement of molecular medicine through Systems Biologypromises to revolutionize the practice of healthcare by allowingearlier detection of disease and drug response, thereby increasing theeffectiveness of treatment and minimizing the severity or duration ofan illness. Molecular medicine is also a keystone in developingindividualized therapeutic treatments and diagnostics for improvedpatient outcomes.

About BG Medicine

BG Medicine, founded in 2000, is a pioneer in the commercialapplication of Systems Biology. The founding investors are FlagshipVentures (Cambridge, MA) and Gilde Investment Management (Utrecht,Netherlands). BG Medicine's proprietary approaches integrate multiplebioanalytical platforms such as proteomics and metabolomics withpowerful bioinformatics and computational analysis. This approachenables the discovery and qualification of accessible biomarkers thatform the basis for advanced diagnostics, and provides key insightsinto disease and drug response. Applied to pharmaceutical development,these approaches can shorten drug development timelines and reduceattrition of drug candidates in late stage trials. BG Medicine'sportfolio of projects includes partnerships with a number of leadingorganizations, such as AstraZeneca, Boehringer Ingelheim, Elan,GlaxoSmithKline, Mitsubishi Pharma, Novartis, TB Alliance, and theFDA. For more information about BG Medicine please visitwww.bg-medicine.com.