Philips And Nike Join Forces To Bring Technology To Sport And Create A New Market
Alliance will deliver innovative, technological solutions to enhance the athletic experience
Beaverton, Oregon, U.S.A. and Amsterdam, The Netherlands - March 25, 2002 – Royal Philips Electronics (AEX: PHI, NYSE:
PHG) and Nike, Inc. (NYSE: NKE) today announced an alliance to merge their athletic and digital technology expertise to
develop innovative technology product solutions which create a richer, more motivating environment for physical
activity.
The co-branded product offering will initially take the form of portable audio products specifically designed for sport,
but will progress, over time, to include apparel and equipment that combine communications, connectivity and information
to motivate athletic activity.
In explaining the rationale for the alliance, Peter Ruppe, vice president, Nike Equipment, stated, “Athletes want
technology that stimulates and enhances the athletic experience. We believe no company or combination of companies has
fully demonstrated how technology can accomplish this. By partnering with Philips, we believe we can transform the
sportswear, electronic and athletic industries.”
Wil van den Berg, Chief Marketing Officer, Philips Consumer Electronics, noted, “Nike knows athletes and athleticism
better than anyone else. By working together, Philips will be able to translate its core expertise in display,
connectivity and storage technologies into product solutions that will delight millions of sports-loving consumers
worldwide. But, more importantly, the vision of the future that the Nike and Philips brands share should lead to a
vibrant new category of products and apparel.”
The premier offerings from the Nike and Philips alliance will include a new line of portable MP3 and MP3-CD players that
have been designed for sport through the integration of ergonomics, usability, portability and solid state technology.
The range of portable audio players and accessories are comfortable to wear during sport and fitness activities, can be
operated intuitively by feel, rather than sight, and deliver a high quality audio experience. The products will be
available from September 2002 onwards at select consumer electronics retailers and at Niketown Stores worldwide.
Nike and Philips bring unique strengths to the venture. Nike has exceptional expertise in sports and material
technology, marketing and innovation. The company transformed athletic footwear with the invention of air technology.
Philips is a leading innovator of “wearable electronics” technologies and has a long heritage of technology innovation,
especially in the digital arena, as well as intimate knowledge of consumers. Philips originated the idea of wearable
electronics in 1995 and has a reputation for introducing high quality, cutting edge electronic products.
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