The following is a graph from one app that was updated recently to include iAds, and we are pleased to report the test has gone better than expected. It appears since the app is free, the user base and ad impressions become cumulative and ever-growing, and apparently so does the revenue from the app.

We expect impressions to level off eventually, and these are preliminary results but the long-term implications are that free apps with the right ad management system like iAd may outperform paid apps and become a significant if not dominant revenue stream.

Although this business model may not work for all of our content partners, it will for most and we expect in time to convert many of our paid apps to free, and include some ads in our paid apps as well.

Our first game tentatively titled “Angry UFO’s Attack” is scheduled to be submitted to iTunes for approval this week, and we expect it to hit the store early next week based on current approval times, closely followed by other games, which will include iAds and in-app purchases for more levels.

Revenue updates and the quarterly report will be released before the end of the month.

Our new major software update for IOS 5 is being worked on and is on schedule. Once our apps are updated with the new software we expect more revenue per app to be generated.

The Bikini Destinations App is now selling on the Roku system as well as Android. Roku is a little box that allows you to instantly stream tons of entertainment on your TV. Watch movies and TV shows from Netflix, Hulu Plus or Amazon Instant Video, listen to music on Pandora, catch the latest ballgame, and more — it’s all available whenever you want it.

Our new multi-platform App store is in final beta-testing and should be live in within a few weeks.

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’s 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’s need for additional financing, which is not assured and which may result in dilution of shareholders, the company’s 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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