In the Netherlands, SF Alert shipped more than 9,000 i-kids phones to the retail channels in the first two months, after the launch at the end of October 2005. The actual number of i-kids phones sold by the retail is unknown, as is the number of subscription for the track-and-trace service. SF Alert is still positive to sell between 30,000 and 50,000 handset during the first year. During the first quarter of 2006, SF Alert is set to launch i-kids phone in New Zealand and Italy. The company expects to launch the service in Germany and Spain during the second quarter of 2006. In the Netherlands SF Alert has a one year exclusive agreement with KPN Telecom, however as SF Alert cooperates with other mobile operators like Vodafone in other countries, we expect that SF Alert will enter in agreements with other operators in the Netherlands towards the end of 2006. In 2006, SF Alert will launch a new mobile phone targeted at the elderly. Besides a similar functionality offered with its i-Kids phone, this new mobile phone will have special features to support healthcare alerts. For example the device will be able automatically alerting an emergency centre using Bluetooth connection with devices that detects changes in, for example, a person's heart condition.
