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Dell Computer Corp. signed an expanded computer system components deal with Royal Philips Electronics that could be worth up to $5 billion for the Dutch company over the life of the five-year agreement.

The arrangement calls for Philips to provide conventional and flat-panel monitors, storage devices, connectivity solutions, and other components to Dell for use in the computer systems that it assembles.

Dell will become a preferred supplier to Philips of server and data-storage products, workstations and PCs while also marketing a range of Philips-brand computer peripherals.

The companies said they also would collaborate on technology planning, marketing and optical-storage standards. The $5 billion figure is based upon 25 percent year-over-year growth.

"Expanding the relationship with Philips enables us to meet the technology requirements of customers across the globe," said Glenn Neland, Dell's vice president for worldwide procurement.

Philips is Europe's largest maker of consumer electronics and third in semiconductors. The company has been signing major league deals recently, including pacts with AOL/Time Warner and Nike after reporting its worst loss in 10 years.

Just last month Round Rock, Texas-based Dell signed a partner deal in which Cray will market high-performance cluster solutions and services worldwide using Dell's PowerEdge servers.

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