Japanese NTT DoCoMo came up with a nice cell phone targeted at kids.
The handset is called Fujitsu F801i and offers several special functions that kids and their parents may find useful. First of all the device is waterproof, and features an alarm that can be triggered manually in case the child is being kidnapped.
The phone also comes with a special bracelet. The F801i will send you an alert once the bracelet is separated from the handset (at a reasonable distance). In addition, the F801i also provides quick access to a kid-friendly website with games.
The phone is available in Light Blue, Red, White and Black colors.