Finnish Benefon recently announced it has reached an agreement with Beijing Capitel to establish a joint venture for the development and manufacturing of mobile telematics offerings and GPS mobile phones. The joint venture will be launched in April 2006 with a minimum starting capital of US$2 million, and it will be based in Beijing. The two companies also reached an agreement whereby Beijing Capitel will manufacture a minimum of 200,000 personal navigation phones for Benefon starting at the end of 2005, which will be aimed towards the European market.