Eindhoven, The Netherlands - The earlier announced joint venture between Royal Philips Electronics (Philips) and Lite-On IT Corporation (Lite-On) is starting to take shape. The European Commission has cleared under the EU Merger Regulation the entry by Lite-On IT into Philips & BenQ Digital Storage Corporation (PBDS) of Taiwan. Lite-On IT has taken over BenQ's shares in PBDS and the name has now changed to Philips & Lite-On Digital Solutions (PLDS).

PLDS will be effective in Europe from 1st of May 2007. Lite-On IT BV, the European head office of Lite-On IT Corporation, will continue to provide the same service to it's customers under the new flag of PLDS. The company will handle sales, marketing, service, finance and logistics of Optical Disc Drives (ODD). PLDS will continue to sell ODD under the brand names Lite-On and HP (under exclusive license from Hewlett-Packard).

Combining strong R&D from Philips with Lite-On's massive production capacity and extensive distribution network will make PLDS ready for the future. With this new organization structure, PLDS will further strengthen the position of Lite-On and HP branded Optical Disc Drives in the market.