From company filings-- Reach Messaging extends corporate brands through the use of mobile applications and social gaming. The Company contracted with Waste Management to build its first Facebook game: Oceanopolis. It gave Waste Management a vehicle to extend their recycling message to a much younger demographic than they had previously been able to reach. The game launched in November 2010 and quickly surpassed 100,000 users. Reach Messaging is currently developing its first game app (versus a Facebook-based game), which launched during this quarter. During 2010 and into 2011, Reach Messaging's focus has migrated from an Instant Messaging Bot company into a full-service mobile application ("app") developer and marketer.

Reach Messaging's approach is threefold:

The first market vertical that Reach Messaging entered was the retail space (i.e. malls and life style centers) with its June 2010 launch of its Mall Buddy platform. The Mall Buddy platform enables Reach Messaging to develop and launch a retail app for a low cost and can complete the application in approximately two weeks (compared to 6 weeks for most competitors). As of June 30, 2011 Reach Messaging has launched 21 retail apps. The Mall Buddy app is a mobile app that runs on smart phones and mobile devices such as, iPhone, Android, iPad and other popular platforms. It is developed and customized to the needs of an individual mall or town center as compared to a generic shopping aggregator. The Mall Buddy app benefits the mall management, the shopper and the individual merchants/venues. The Mall Buddy app is a compelling and feature-rich shopping application. It is frequently enhanced with additional features to offer a valuable and entertaining experience to the end-users.

In order to acquire these clients, Reach Messaging had to incur the initial costs related to the development of the platform, however in return the Company is now able to establish a footprint in the retail app space and anticipates generating additional revenue through its 'back-end' ad solution. Reach Messaging is currently in discussions with several major mall management companies to provide mobile app solutions for an upfront fee, as well as receiving a share of the recurring revenue. Reach Messaging projects to launch 20 - 30 new retail apps by mid-Q3 2011.

Reach Messaging entered its second vertical in September 2010, when it finished development and launched its Celebrity App platform. The Celebrity App platform enables Reach Messaging to develop and launch a celebrity app for a low cost and complete the design in approximately 3 weeks (compared to 8 weeks for most competitors). Users of Reach Messaging's Celebrity Apps get official news first and will be clued in to the celebrity's latest Twitter and Facebook posts. They can also create and share images of themselves hangin' with the celebrity, enter a celebrity look-a-like contest, or submit photos for a "hot or not" contest. In addition, those with the Celebrity App can check out freshly updated exclusive photo galleries and videos of the celebrity, take fan polls and quizzes and receive celeb wild quotes, tips and facts. In February 2011, Reach Messaging and Velti launched the official 'Paris Hilton' app. This Celebrity App is projected to generate 350,000 downloads annually and received much buzz on network television and other media. Since the Paris Hilton launch, Reach Messaging has also launched the Michaele Salahi Celebrity App and is in talks with several athletes, TV stars and artists to release their Celebrity Apps. Reach Messaging anticipates this will become a significant source of revenue for the next several years.

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Third, Reach Messaging is under development of additional app platforms for certain other market segments including hospitality (restaurant and vineyards), local advertising and health and fitness. In December 2010, Reach Messaging launched its turnkey proprietary advertising solution for mobile ad publishers that it refers to as an Interactive Ad Curtain. Reach Messaging believes that its new, proprietary mobile ad technology is able to provide publishers with a better return on investment than existing platforms such as AdMob and iAd. Reach Messaging offers Software Development Kits (SDK's) that allow its technology to be used for mobile applications developed for both the iPhone and the Android and, unlike existing ad platforms, does not charge publishers any fees for "house" or proprietary ads that they run about their companies. Perhaps the most significant feature of the Company's Interactive Ad Curtain mobile ad technology is that it allows readers to "share" ads via email and social media outlets such as Facebook and Twitter. In January 2011, Reach Messaging signed its first two customers licensing this ad technology for a licensing fee and recurring revenue share.

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