Investments by Philips and Neusoft to develop local biomedical talent

Integrating worlds of industry, academia and research

Leading Chinese and Dutch Universities Launch Medical,
Hi-Tech Venture to Tackle Healthcare Challenges Ahead

SHENYANG, MAY 11, 2005 Northeastern University in Shenyang, China, announced today at a signing ceremony the establishment of a Biomedical and Information Engineering School in cooperation with Eindhoven University of Technology (TU/e) of the Netherlands. The landmark agreement will foster the development of medical technology market enterprise through the resources of the two universities.

With a goal of raising the standards and expertise of R&D in China, the partnership will act to serve as a bridge between education and industry by encouraging the cooperation and collaboration between business, teaching and research. Commercial sponsors Philips and Neusoft pledged their support by providing financial backing as well as real-world expertise to the universities in an effort to further develop the healthcare industry in China and around the globe.

Mr. He Jicheng, President of Northeastern University and Dr. Frank Baaijens, Dean of the Biomedical Engineering School of Eindhoven University of Technology, represented the two universities at the signing ceremony. They were joined by Mr. David Jin, CEO of Philips Medical Systems Greater China, Dr. Liu Jiren, Chairman and CEO of Neusoft Group, Mr. J. F. Hoogervorst, Minister of Health of the Netherlands, Madam Lu Xin, Vice-Governor of Liaoning Province as well as officials from the Chinese Ministry of Education and the Ministry of Health.

Information technology and life sciences will be among the most important research categories in the world in the 21st century and China has become the third largest healthcare market after the USA and Japan, said Dr. Baaijens. Our goal is to promote and cultivate professionals at the highest level specializing in biomedical and information engineering.

The need for such professionals in China is critical. China s population of 1.3 billion has created an enormous market for medical instruments. Sales of medical equipment is expected to reach RMB86 billion in 2005, with an annual growth rate of approximately 15 percent, far above the world average of 7 percent. However, the traditional model of higher education in China cannot meet the urgent industrial demand for high-level interdisciplinary talent to continue the development of related technologies at the required pace.

Students of the new cross-cultural program will not only gain the knowledge of basic medicine and biology, but also learn practical skills in modern biological technology, biological information, computer science and related fields. From the business side, in addition to providing financial support for the establishment of the school, Neusoft and Philips will also provide a practice and R&D base via Philips and Neusoft Medical Systems Co., Ltd.

Our cooperation at this time will bring about a win-win partnership through an effective integration of our collective strengths, remarked He Jicheng of Northeastern University. This partnership will enrich our existing field of teaching and research and enable us to provide broader resource and a stronger vision. Northeastern University will make a huge leap forward on its path towards world-class, multi-discipline research.

The new Biomedical & Information Engineering School plans to enroll about 1,000 students, including undergraduates, postgraduates and doctoral students. Its curriculum will model that of Eindhoven University of Technology, combining basic theory with design-centered learning and incorporate advanced international models and resources.

For the participating companies, investing in higher education makes good business sense. As the biggest Dutch-based company in China, Philips sees its role as a bridge builder between China and the rest of the world.

This year marks the 20th anniversary for Philips in China, said Mr. David Jin, CEO of Philips Medical Systems Greater China. As one of the largest multi-national corporations in China, we are dedicated to working with the Chinese government on issues related to sustainable development, especially in developing talents via our strategy of Open Innovation. Our investment in this venture highlights our support not only to education and healthcare, but to China s future as a whole.

For corporate partner Neusoft, supporting China s higher education is an example of the symbiotic relationship between business and academia that it has promoted all along and a way for the company to contribute back to its roots. Not new to the concept of supporting education, the company has previously set up IT colleges in three Chinese cities ? Dalian, Nanhai and Chengdu.

As an enterprise originally born out of Northeastern University, Neusoft s success would not have been realized without the support of the university, said company CEO Dr. Liu. The establishment of the Northeastern/Eindhoven program will provide a large reserve of excellent talent for Neusoft in the future and increase our core competitiveness in the medical industry.