The preliminary results are in for case studies of paid apps converted to free apps coinciding with propriety marketing push.  This case study was a small sampling of two apps and only an estimate, we plan on adding thousands of free apps so actual results will vary.

One paid app averaging $10 a day was converted to free and earned an estimated $20 a day from advertising revenue during a week long test.  Another app averaging $1 a day as a paid app, earned about $5 a day as a free app during a month long test.

Based on these early estimates it looks like we can generate a 100% to 500% increase in revenue on many apps on ITunes, depending on various factors like content type and popularity.  With over 1000 apps in our portfolio, this increase will become substantial in time.

Paid to Free app conversion costs are minimal because many apps are already created and only need to be updated,but they still require time to be approved so we estimate the conversion will take several months.

The plan is to convert many of our less popular paid apps into free ad-supported apps, and make free “Lite” versions of our top-selling apps.  Lite versions of the same app will have some content from the full paid versions, but will generate ad revenue, creating two streams of revenue from the same content, maximizing the potential earnings of each app.

Not all apps are candidates for conversion because of various contractual or technical reasons, but most in our current portfolio can be converted or released as a free ad-supported version.  Test results also show making a free version of a paid app does not cut into sales of the paid app, and can even boost sales of the paid version.

Revenues for the month of January are currently averaging $1750 a day, up from $1000 a day during the same period last month.  Overall revenue from ads we estimate will eventually be at least 25% more than we would have generated creating paid apps alone.

Also for the other platforms besides iTunes, free apps earn significantly more revenue than paid. The testing we are doing in iTunes will be useful once we port iTunes apps over to Android and Blackberry in the near future. *

With nearly 80 apps added so far this month, the company is on track to reach its production goal of 100 or more apps monthly, and plans for multi-platform App Stores are still on schedule, the first estimated to appear in March 2010 on Android.

* As company policy we do not collect customer data in ad-based apps or resell any customer data, our ad revenue is generated by clients and agencies who buy ads in our apps.

Forward-Looking Statements: Any statements made in this press release which are

not historical facts contain certain forward-looking statements, as such term is

defined in the Private Litigation Reform Act of 1995, concerning potential

developments affecting the business, prospects, financial condition and other

aspects of the company to which this release pertains. These forward-looking

statements involve known and unknown risks, uncertainties and other factors that

may cause our actual results of the specific items described in this release,

and the company^1s operations generally, to differ materially from what is

projected in such forward-looking statements. Although such statements are based

upon the best judgments of management of the company as of the date of this

release, significant deviations in magnitude, timing and other factors may

result from business risks and uncertainties including, without limitation, the

company^1s need for additional financing, which is not assured and which may

result in dilution of shareholders, the company^1s status as a small company

with a limited operating history, dependence on third parties and the continuing

popularity of the iOS operating system, general market and economic conditions,

technical factors, receipt of revenues, and other factors, many of which are

beyond the control of the company. Although we believe that the expectations

reflected in the forward-looking statements are reasonable, we cannot guarantee

future results, levels of activity, performance, or achievements. Moreover,

neither we nor any other person assumes responsibility for the accuracy and

completeness of such statements, and we disclaim any obligation to update

information contained in any forward-looking statement

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