MP3 IntroductionPortable Entertainment Solutions Herbert Lee Product Marketing_Taiwan Email: herbert.lee@philips.com Agenda Market Overview Successful Story Solution Roadmap Add-Ons for Portable Jukebox (LifeVibes) Market Overview Portable Digital Music Player Shipment FCX (Kpcs) 2002 2003 Solid State (flash-based) 2,090 3,050 755 1,800 HDD 3,310 6,985 CD/ MP3 650 715 Net MD 6,805 12,550 Total Market Growth % 84.4% Source: In-Stat/MDR, 3/03 Compound Annual Growth Rate (CAGR) 2004 3,680 3,550 10,609 810 18,649 48.6% 2005 4,110 5,985 14,450 875 25,420 36.3% 2006 4,850 8,360 18,150 960 32,320 27.1% 2007 CAGR 5,200 20.0% 10,233 68.4% 19,575 42.7% 1,200 13.0% 36,208 39.7% 12.0% Market Overview_ Solid State&HDD Solid State/ HDD Portable Players Regional Shipments 2002 2003 2004 2005 2006 2007 9……