Cambridge Display Technology (CDT), the UK company leading world-wide development of light emitting polymer (LEP) technology and Philips Components B.V., of the Netherlands, have signed a non-exclusive agreement which will give Philips Components access to CDT's patented LEP technology.

Under the terms of the agreement Philips will pay CDT an upfront license fee together with a royalty on all LEP products. In return, Philips will gain access to CDT's patented technology for the lifetime of its patents. The precise financial nature of the agreement is confidential to both parties.

The agreement opens the possibility for Philips Components to scale existing laboratory processes and to develop its own manufacturing techniques and processes for the manufacture of specific small displays.

Potential benefits of this technology over current technologies (such as light emitting diode (LED) and liquid crystal display (LCD) technology) are that it will eventually enable Philips to manufacture thinner displays which will operate at lower voltage and will consume less energy, in a simpler way.

The initial target for the coming years is to replace the existing backlights for LCDs in applications where space, low voltage and low power consumption are at a premium, such as in mobile telephones. In the next phase displays will be developed for application in consumer products that currently depend on LEDs or LCDs, such as Personal Digital Assistants (PDAs), CD players, electric razors, alarm clocks, radios and, ultimately, television sets.

"For CDT to be successful, it is essential that we globalise LEP technology. This means that we must license the major consumer display manufacturers and chemical companies. As global leaders in this market, I am delighted that Philips is our first consumer licensee", said Danny Chapchal, CEO at CDT. "Partnership is key to the commercial exploitation of LEP technology and lies at the core of our business strategy".

About Philips:
Philips Components, a product division of Philips Electronics N.V., of the Netherlands is a world-wide supplier of high-quality electronic components and modules. The division employs more than 41,000 people over the world and its products range form picture tubes to liquid crystal displays, and from resistors and capacitors to many different magnetic products. Philips components also makes a wide variety of key modules, from laser-optic products and CD-recordable drives to custom made printed circuit boars for the automotive industry. It is the number one supplier in Europe and South America and has a strong position in North America. The division is realising fast and strong growth in China and the rest of the Asia-Pacific region.