Hong Kong's VTech has signed a licensing agreement with Deutsche Telekom for exclusive right to supply corded and cordless telephones for the Deutsche Telekom's T-Home brand in Germany.

"We are very pleased that Deutsche Telekom has chosen VTech as its sole supplier of corded and cordless telephones. The agreement will boost our sales to this important customer and the co-branding will raise awareness of the VTech brand in Germany significantly," stated Allan Wong, chairman and CEO of VTech.

The agreement is for three years, with an option to renew for one year. VTech will take over the logistics and after-sales service for the products. The first shipment of the co-branded VTech and Deutsche Telekom products is expected in early 2009. As part of the agreement, "produced by VTech" will be featured on both the products and packaging.