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The most part of papers dealing with linear parameter varying systems (LPV) control assumes a perfect parameter knowledge. In this note the scheduling physical parameters are supposed to be inexactly measured. Continuous time polytopic LPV systems are considered and an observer based controller is proposed to guarantee internal stability and performance in terms of exact asymptotic output regulation at a desired set point, despite the presence external disturbances. An iterative LMI procedure is given for computing the maximum parametric uncertainty level that can be tolerated to maintain the exponential stability of the closed loop system. The controller is scheduled by the noisy parameter readings and a quadratic affinely parameter-dependent Lyapunov function is used. This results in a general approach encompassing constant controller gains and/or parameter independent Lyapunov functions.