A brilliant strike by Ecuadorian International Edison Mendez is the 61st minute proved to be the difference in the game as Arsenal put forth a lackadaisical effort for most of the Round of 16 contest.

The game started passively for both sides, but Arsenal had the first quality scoring chance 13 minutes in.

Thierry Henry fed Tomas Rosicky with a one-two on the left side of the area, and the Czech midfielder found a seam. He fired a low shot at the far post which was saved by PSV's Brazilian goalkeeper Gomes, but not without some suspense. He got a hand on the ball to stop it as he was falling away, leaving the ball inches from the goaline before Carlos Salcido cleared it away.

Mendez got PSV's first shot on goal in the 21st minute from 20-yards but the effort was easily saved by Arsenal 'keeper Jens Lehman.

About five minutes later, Arsenal striker Henry had another quality effort from the left side, but bent a shot over the crossbar.

PSV had the next quality chance in the 39th minute when Jason Culina touched the ball around a defender in the midfield and found space where he raced on goal before unleashing a shot. Lehman made the save with little difficulty, however, as the shot was right at him.

Henry had a couple of minimal chances before the break, but was able to do little with them and the teams went into halftime tied at 0.

The teams came out with little energy to start the second half before Mendez was able to put the home squad on top.

After taking a well placed pass from Arouna Kone, Mendez struck a low hard shot into the bottom-left corner of the net to give PSV the lead at the hour mark. The 25-yard strike just eluded the fingertips of a diving Lehman to find the back of the net.

After the goal, PSV made history by subbing in Sun Xiang, who made his Champions League debut - the first ever appearance by a Chinese player in UEFA Champions League competition.

The Gunners created few chances the rest of the way with Francesc Fabregas' effort from about 20-yards out being the best about 20 minutes to time.

His strong strike was deflected over the crossbar by Gomes as he drove to his left to ensure the slim lead.

Arsenal outshot PSV 12-9 in the contest while Gomes made six saves to earn the win. The loss is the first for Arsenal at Philips Stadion in Eindhoven in three Champions League matches there - this the first in the knockout phase.

In the other UEFA Champions league matches on Tuesday, Spanish power Real Madrid outscored German champion Bayern Munich 3-2 behind two goals from Raul, Celtic and AC Milan battled to a 0-0 draw and Manchester United used a controversial quick start, freekick goal by Ryan Giggs seven minutes from time to secure a 1-0 win at Lille.

The rest of the first leg contests will be played Wednesday with Barcelona, FC Porto, Inter Milan and Roma hosting Liverpool, Chelsea, Valencia and Lyon, respectively.

At the conclusion of the first leg matches Wednesday, Champions League matches will resume March 6-7 at the higher seeds' home stadiums for the second leg of the Round of 16 phase.