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Apr. 14. 2008 / 4:00AM, PHG - Q1 2008 Royal Philips Electronics Earnings Conference Call

We certainly enjoy those orders. Some of them, by the way, are absolutely deliverable in the first half. But before we say that this is there to stay, we've always said, for now two quarters, and we'll continue to say that we wait for June 2008, which is when we will have an update on the DRA.

I think that's why I'm saying robust on Q1, please, tempered by easy, or easier comparables. And as far as Q2 and the year is concerned, I'm saying, before we say that the DRA issue is taken care of, let's wait until the end of June. I think there is absolutely no change in that story there.

Timm Schulze-Melander - Bear Stearns - Analyst

Okay, great. And then just that second half of that question in terms of the overall order activity in Medical. Can you just make a comment on Respironics and what kind of influence it will have in the second quarter?

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

I think Respironics in terms of numbers I can tell you that -- and I will give you the numbers for the first quarter because you don't want obviously -- I don't have the exact number for the few weeks that Respironics was into our perimeter. So I will give you the number for Respironics on Q1. They grew 16.3% basically.

And in terms of margin, I think the margin was slightly north of the margin that we had given in the particular guidance. So I don't have the margin number here, but I think it was slightly north of 15%. So that's Respironics. And we expect Respironics to continue at that level.

Operator Thank you sir. Your next question comes from Mr. William Mackie from MainFirst Bank. Please go ahead sir.

William Mackie - MainFirstBank - Analyst

Yes, good morning, thank you. A couple of questions. First of all, could we just go back to the incidental charges? Could you try and, at least, quantify the expected level of incidental charges in total for the year as you look at it, which are linked to Respironics and Genlyte and other deals, obviously excluding any potential gains where the timing may be difficult to predict?

And then the follow-up would be on Lighting. In your commentary you discussed temporary softness in Western Europe, which is obviously around 50% of the divisional sales. Perhaps you could throw a little color on where you're seeing that softness and why exactly is it temporary? Thank you.

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Okay. We are basically referring to two type of incidentals. The one was related to the integration charges which are impacting the EBITA, and one is basically on the overall Healthcare business. And I think we've disclosed that in the press release which was earlier on this quarter. And we've talked about EUR100 million for basically the inclusion of our medical acquisitions, essentially Respironics, VISICU and Emergin. So there, there is about EUR100 million.

And on Lighting we have about EUR40 million for the same reason which relates to the acquisition of Genlyte. So there that is EUR140 million. And we had actually disclosed to you what would impact the first quarter and those numbers are, I think, pretty much in line with what we have told you in the press release.


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