Phillips Australia Urgent Product Defect Correction Update

To the community of patients, providers and practitioners,

As part of our commitment for ongoing communication regarding the recent Urgent Product Defect Correction (Australia) and Recall for Product Correction (New Zealand) of certain products in our Sleep and Respiratory Care portfolio, I wanted to take this opportunity to share some important updates with you.

There are three areas of update to share with you today:

1) Clinical insight

There has been a great deal of attention focused on the guidance Philips provided regarding the use of impacted devices, which can be once again found at philips.com/src-update. We must reiterate the guidance that patients should consult with their physicians regarding therapy options.

We recognize that this recommendation, combined with the time required to finalize and execute this remediation plan can be challenging for our customers, physicians, and their patients. However, this advice came after careful consideration of the clinical data available, along with the respect for every patient/physician relationship regarding personalized care.

We will continue to offer any guidance for physician consideration at philips.com/src-clinician-update.

2) Timing of remediation:

Currently, we are processing the device serial number registrations that have been received. Our organization is working diligently to replace or repair devices as soon as possible.

We will continue to stay in communication with updates on any new developments and additional information regarding progress and timing.

3) Manufacturing ramp-up:

We are fully committed to addressing this issue on a global scale and have increased both our production capacity, as well as our service and repair capacity. Specifically, we have increased the production capacity of repair kits and replacement devices in Q3 2021 and we aim to further increase that capacity in Q4 2021.

While we have made progress, we are conscious that timing and communication are critical. We will continue to share updates as we manage through this process, as well as keep current information posted at philips.com/src-update.

On behalf of everyone at Philips, I thank you for your patience and your partnership, as we work through this, while keeping patient care at the heart of everything we do.

Sincerely,

David Ferguson

Executive Vice President, Philips Business Leader Sleep and Respiratory Care