Funkwerk and VTech Form Joint Venture to Tap into Growing Global Integrated Access Device Market

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Funkwerk and VTech Form Joint Venture to Tap into Growing Global Integrated Access Device Market

13 December 2007

Nuremberg / Hong Kong – 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 highquality 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.

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


About Funkwerk Enterprise Communications GmbH
Funkwerk Enterprise Communications GmbH (FEC) is a leading European vendor of network and communications solutions with its headquarters in Nuremberg. The full-line provider focuses on companies, institutions, as well as carriers and Internet service providers (ISPs). The portfolio of FEC comprises the classical networking technologies, such as routing, IT security, WLAN and network management, media gateways, traditional ISDN telecommunications systems and phones, as well as innovative voice-data solutions for VoIP and VoVPN. These topics are focused by the Business Center ICT. With the Business Center Messaging, FEC is also actively engaged in the facility management, TETRA, and personal security markets on the basis of DECT and GPS.

Funkwerk Enterprise Communications GmbH distributes their network and communications solutions on a national and international scale in two phases via indirect channels.

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