Funkwerk Enterprise Communications

Nuremberg / Hong Kong, 13th December 2007 – Funkwerk Enterprise Communications GmbH (FEC), a leading Germany-based supplier of network and communications solutions, and VTech Telecommunications Ltd (VTech), one of the world’s largest suppliers of corded and cordless telephones, announced today the formation of a joint venture to develop new products in the growing market of Integrated Access Devices (IADs).

IADs are all-in-one gateways including Wi-Fi, VoIP, routers and PSTN/ISDN telephony. Under the joint venture arrangement, FEC and VTech will leverage their complementary strengths to bring innovative and technologically advanced IAD products to customers on an Original Design Manufacturing (ODM) basis. FEC will provide the expertise and software platform for the development of new IAD products, whereas VTech will be responsible for hardware design and manufacturing.

“We are pleased to collaborate with FEC, which is widely recognised as a leader in the development of high quality enterprise broadband software and products in Europe,” said Mr. Allan Wong, Chairman and Group CEO of VTech Holdings Ltd. “Their extensive broadband knowledge will complement VTech’s capability in the design, manufacture and distribution of high-quality consumer electronics products globally, allowing both companies to tap into the growing IAD market."

“With the rapid development of triple-play devices and applications, IADs are expected to have strong potential in the consumer market,” said Hans-Ekkehard Domröse, CEO of FEC. “It is difficult to compete in the global market solely as a European manufacturer. Rather than relocating our production to Asia, we choose to join forces with VTech, an experienced and reputable hardware partner. By leveraging the expertise of both companies, I believe we can bring the best of both worlds together to benefit all of our customers.”
FEC and VTech have set up a new company, FunkTech Funkwerk-VTech GmbH and it will sell IAD products to Telco operators, service providers and distributors worldwide. The first shipment is expected to deliver in the first half of the calendar year 2008.

Funkwerk Enterprise Communications GmbH in brief

Funkwerk Enterprise Communications GmbH (FEC) is the leading European vendor of professional network and communication solutions. The German company addresses professional users, such as companies, institutions and administration as well as carriers and Internet service providers (ISPs), and delivers highly reliable, high-quality products and solutions designed to meet market needs from four major areas of competence: IP Access, Security, Voice and WLAN. The network and communication solutions are marketed in Germany and abroad through indirect channels in a two-tier sales system. Funkwerk Enterprise Communications employs more than 170 people in total at several different company locations throughout Europe, the market on which the company is active. The FEC head offices are located in Nuremberg. FEC is a wholly owned subsidiary of Funkwerk AG, which has its head offices in Kölleda, Germany.

About VTech Telecommunications Ltd

VTech Telecommunications Ltd is a wholly owned subsidiary of VTech Holdings Ltd. VTech Holdings is one of the world’s largest suppliers of corded and cordless telephones and a leading supplier of electronic learning products. It also provides highly sought-after contract manufacturing services. Founded in 1976, the Group’s mission is to be the most cost-effective designer and manufacturer of innovative, high-quality consumer electronics products and to distribute them to markets worldwide in the most efficient manner. For further information on VTech and its array of products, please visit www.vtech.com.