Getfugu (OTC BB: GFGU) is developing technology applications that allow any camera-equipped mobile phone to access information from advertisers and/or marketers by downloading the, or content, simply by pointing the camera at the logo and clicking on it. Clicking on the logo allows the individual to bypass traditional search engines such as Google, Yahoo or MSN to retrieve content. Current mobile technology is basically a miniature version of the browser we use on our PC. 

With GetFugu’s technology, you can point your camera at a Coca Cola can and be taken directly to the Coca Cola website. GetFugu has also developed Hotspotting technology that will allow you to touch a particular item in a video, such as a shirt, and be taken to a website where you can purchase it. In our opinion, GetFugu’s technology could revolutionixze the way consumers search the web from their mobile phones. 

Market Analysis 

With nearly 4 billion handheld devices in the world, mobile phones outnumber PCs nearly 4-to-1. In our opinion, mobile phones provide an attractive advertising platform. Current advertising to mobile phone customers has been limited, since there is no industry standard, traditional methods like Google or Yahoo prevail. GetFugu plans to improve the way consumers search for content, not by competing with traditional mobile phone search engines, but by enhancing them. 

GetFugu encourages the use of its applications by integrating the mobile phones' core strengths (image recognition, voice recognition, location recognition) into a single, customizable application. Additionally, Getfugu offers the only mobile hot-spotting ecommerce platform available worldwide today, which will be available for 97% of the mobile phones available (over 3.3 billion handsets) worldwide. 

Dynamic Leadership 

GetFugu is led by CEO Bernard Stolar, former Game Evangelist at Google, and recently named Internet search pioneer and Ask Jeeves (Ask.com) founder David Warthen as the company's Chief Technology Officer. Also, Getfugu recently appointed Beth Doherty as Vice President of Network Sales and Michael Jay Solomon to the Board of Directors. Doherty brings more than 20 years of experience in the high tech and entertainment software industries, while Solomon is an entertainment industry veteran and past President of Lorimar Telepictures and Warner Bros. International Television. 

How it Works 

GetFugu’s mobile search tools include four distinct services known as ARL, VRL, GRL, and Hotspotting. 

In our opinion, for technology to be widely accepted it must be simple; otherwise, both consumers and advertisers will not use it. GetFugu presents a comprehensive, unified interface that allows end users to perform queries based on visual, auditory and location-based information. While running the application, the user can speak a command, capture an image, or use their location, and receive a wealth of information about specific products or nearby vendors. The end goal is the same: to find out more about a product or company. The key, however, is making the technology simple enough for all to understand. In our opinion, GetFugu has accomplished this. 

Also, the technology must be simple for advertisers to use. In order to use GetFugu, an advertiser simply uploads their logo for ARL, types in a keyword for VRL and optionally uses a simple drag-and-click map interface to define an advertising region. Once their information is entered into the system, it becomes active for all end users. 

Revenue Model 

GetFugu plans to use a DNS registration (monthly subscription) business model and charge $9.99 per month (for small businesses) and $99 per month for companies with ten or more employees. This fee is based on a single logo (marker), or keyword, and includes a single ARL/VRL/GRL for an unlimited amount of traffic. 

In our opinion, Fortune 500 companies that use multiple forms of advertising will purchase multiple markers to track their ads. Hotspotting involves a revenue split with the advertiser on a transaction basis. We believe the market potential for these applications is global and includes both national and local advertisers in each area. These advertisers have an estimated 350,000,000 logos worldwide, each of which is a potential advertiser. 

Mobile Advertising Challenges 

Today’s mobile devices continue to improve at an exponential rate. Processing power is increasing, displays are crisper and peripheral hardware such as cameras, gyroscopes and accelerometers are being integrated. Because of this, it is possible to develop new applications that offer rich multimedia experiences for end users. 

Even as hardware improves, data entry continues to be an awkward process. Some phones contain physical keyboards, while others contain virtual (on screen) keyboards Both are often difficult to use because of their size and require the user to focus their attention on the device. 

Current Mobile Phone Market 

As of 2008, 96.3% of all cell phones contained a camera. The Company believes that the mobile phone sector will be the next large-scale arena for advertising campaigns. In addition, the number of cell phones that contain a GPS (“Global Positioning System”) is increasing. It is estimated that 95% of new cell phones will contain a GPS unit. Currently, the majority of cellular phones have a microphone. We believe it is possible to leverage these components to provide new advertising paths for businesses while reaching a large target audience. 

Summary 

We believe the market “timing” for the launch of GetFugu’s mobile technology platform is excellent, as it is being introduced at a time when advertising in the mobile phone marketplace is in its infancy and no clear market leader has yet emerged. 

Since Getfugu will launch its applications for mobile devices in the fall of 2009, we believe the stock price could move significantly higher as investors discover its potential. Shares of GetFugu traded over $3.00 as recently as a few months ago and a move halfway back up to the high would result in a more than five-fold profit.