Modavox Inc. (MDVX.OB)

News for 'MDVX' - (Modavox Releases Management Letter to Shareholders)

PHOENIX and NEW YORK, Dec 3, 2009 (GlobeNewswire via COMTEX) -- Modavox, Inc.
(OTCBB:MDVX), Internet broadcasting pioneer and holder of several patented
technologies, provides the following Management Letter to Shareholders:

Dear Modavox Shareholders:

It has been nearly six months since the integration of Augme Mobile and the
assimilation of the new executive management team into Modavox. After a thorough
internal review of the combined companies' assets and growth opportunities, we
have developed a business plan to optimize our resources, and we have embarked
on a BOD-approved comprehensive IP monetization and business growth strategy. I
would like to take this opportunity to review some of our recent
accomplishments, outline the new corporate structure and branding that will
position us to drive revenue, and preview some of the exciting things to come as
we enter a new year and a new period of growth for Modavox. We are issuing this
letter to Shareholders to provide a summary of that plan, with more details
expected to follow after the New Year.

As we have discussed in the past, Modavox patents have been evaluated by several
third party experts skilled in the relevant art, which experts have evaluated
the patents and determined that infringement is widespread and infringement
damages are present in the two primary Internet markets of ecommerce and
advertising for value extraction by Modavox through licensing and enforcement.
Our patent defense litigation front continues with Tacoda, and has in fact
broadened with respect to AOL, Platform A and Time Warner given the Court's
October 22, 2009, Order setting a Pre-Trial Status Conference for December 19,
2009, at which time counsel for the parties are ordered to meet to discuss
settlement, pre-trial discovery and all preliminary matters. We view the Court's
Order as a positive event given AOL's previously filed motion seeking to
consolidate the Tacoda case with the AOL/Platform A/Time Warner matter, or, in
the alternative, to Stay the AOL/Platform A/Time Warner matter, either of which
could have had the effect of delaying resolution of the Tacoda case. Further, on
November 16, 2009, after extensive investigation and due diligence, Modavox
filed a Complaint against Yahoo! Inc. for patent infringement, which Complaint
is in the process of being served upon Yahoo! per Court rules. Following
completion of service the parties will meet and confer pursuant to the Federal
Rules of Civil Procedure to discuss a range of preliminary matters and prepare a
report related to such matters.

In addition, as announced in late October, we filed a motion for sanctions for
spoliation of evidence and evasive disclosure practices in the Tacoda case.
While there is no set timeframe for the ruling on the motion for sanctions, the
Court is expected to rule as soon as it has had an opportunity to review the
legal arguments and materials filed in support and in opposition to the motion.

Although the timing of any court ruling on our infringement claims or related
matters is outside of our control, we remain confident in the validity of our
claims, the merits of our cases, and are dedicated to completing the work
necessary to protect Modavox assets.

In an effort to further leverage and defend the value of our IP rights, we are
currently developing a broader IP Licensing Strategy that will ultimately
operate as a profit center under the direction of Jim Lawson, Modavox General
Counsel and Chief Legal Officer. Given the broad range of the patents and their
foundational status to achieve Behavioral Targeting and possibly other key areas
related to mobile applications and services, we believe the "Qualcom licensing
model" represents the optimal IP strategy. A sound IP Licensing model, in
conjunction with aggressive internal development and commercialization of
marketing driven technologies, represents a sound strategy for maximizing
shareholder value. Thus far, Modavox has yet to pursue enforcement actions
against the wide range of companies infringing on our property rights. We
believe an active enforcement program targeting small and medium sized entities
as well as the large players will result in accelerating the monetization of our
IP assets, and further validate the value of our Patents.

While the defense of our IP remains an important element of our underlying
value, the acquisition of Augme Mobile marked the launch of a comprehensive
business growth strategy aimed at accelerating the advanced development and
commercialization of technology platforms in high growth markets. I am pleased
to announce our new operating structure that includes the aggressive growth of
three operating divisions in the high growth markets of mobile marketing (AD
LIFE(SM)), video content delivery (AD BOOM(SM)) and ad network delivery (AD
SERVE(SM)). These three divisions are branded under "Augme" - derived from the
verb "Augment" which means "to make something greater by adding to it." The
Augme branded portfolio offers products and services based upon Marketing Driven
Technology Platforms that enhance the delivery of marketing communications
through intelligent distribution to all Internet-enabled devices.

We are planning a fully integrated launch of the Augme Marketing Driven
Technology brand in January, consisting of a public relations event, business
and technology media coverage, and a new website to communicate our new
corporate mission. An announcement will be made within the next few weeks
relating to our final selection of a public relations company to handle this
effort and manage our future PR needs. In advance of our January launch, I would
like to take this opportunity to share the highlights of each of our high-growth
divisions.

AD LIFE(SM) (Augme Mobile) is our interactive platform to provide marketers,
brands and advertising agencies the ability to create, deliver, manage and track
interactive marketing campaigns targeting Mobile Consumers through traditional
print advertising channels. AD LIFE(SM) continues to validate its growth plan of
becoming the premier mobile marketing provider for the worlds largest consumer
package goods (CPG) companies and their marketing agencies. By integrating the
AD LIFE(SM) platform within the marketing technology function of these
formidable clients, we anticipate solid annuitized growth as the platform is
utilized across multiple brands under a single master contract. While we may
have some current restrictions in disclosing the specific names of certain
clients, AD LIFE(SM) is enjoying significant momentum, evidenced by our success
in landing Fortune 500 CPGs as clients, including beating out major corporations
for the accounts. These Fortune 500 client companies are entrusting us to
support some of the most common household brands and we will provide more detail
to our Shareholders in the future when appropriate. For a complete overview of
the technology and the offering, take a few moments to visit the recently
launched AD LIFE(SM) web site at www.augmemobile.com.

Our indirect sales channel partnership strategy continues to show activity and
growth for AD LIFE(SM), highlighted by our working relationships with top
traditional media purveyors in the US such as Graphic Packaging, News Corp's
News America Marketing (a division of News Corp), Clear Channel Outdoor, and OMD
(a division of Omnicom Group). Technical partnerships are equally valuable,
demonstrating our vision and leadership in mobile marketing solutions. Recall
our recently announced collaboration with Inmar - the nation's leading
promotions transaction settlement provider - to enable consumer directed rebate
charity program for Springer Mountain Farms. We also recently delivered the
SmartSource mobile coupon program for News America Marketing, offering top
national brand coupons available exclusively through the mobile phone. In the
coming months, we look forward to sharing more on the depth and value of these
important sales and technical partnerships.

In addition to CPG clients, the AD LIFE(SM) platform has tremendous potential
within specific vertical markets. In fact, our fastest growing product line is
Augme Mobile Health, which is the AD LIFE(SM) platform modified for the unique
needs of the health care and pharmaceutical industry. Our HIPAA-compliant mobile
interactive technology enables marketers of prescription-drugs and their
agencies to communicate with health care providers, and their patients instantly
through mobile phones. This offer represents enormous near-term revenue
potential for our company, and we are already doing business with three of the
world's top ten pharmaceutical companies that have combined net revenues of over
$150B. Look for more details on Augme Mobile Health in an announcement in the
coming weeks.

The second independent operating division is AD BOOM(SM), which we are proud to
announce is the revitalized version of the BoomBox(R) product line. AD BOOM(SM)
delivers content straight to desktops and Internet-enabled devices, and provides
managed access for live and on-demand Internet broadcasting and rich media
advertising. After considerable thought around the competitive advantages of our
offer in a dynamic video content delivery market, we concluded that BoomBox(R)
represents an important component of our strategy as well as a channel for the
application of our IP. The market for video content delivery is ready to
explode, as all major media companies and content owners of all sizes face
increased pressure to monetize their video content to survive. AD BOOM(SM)
offers an intelligent Broadcast as a Service (BaaS) platform, now newly packaged
and designed specifically for marketers and content owners who want to sell,
promote, extend and enhance their content through a viral Internet distribution
model. Look for a more detailed overview of ou

WARNING, WARNING. ABE LINCOLN Pattern forming!!!
I have been very negative on Modavox, a company that is clearly a patent troll hoping a big company they are suing over minute similarities in vague patents will give them a bone to go away. Their only core business "voiceamerica", not to be confused with "voiceofamerica" loses money consistantly. The "new product Augme Mobile doesn't have a prayer. They are paying thier trolling lawyers (and their janitors) in company stock. SO...why up?

The upthumb is because of the Abe Lincoln pattern forming. If you look carefully at the last year's graph you can see the beard and nose. Abe is resting with his nose up. The next piece of the chart is the top hat that Abe is known for. The top hat "to fill" will force the stock price to go up considerably before it finally tumbles for the last time. This bullish signal is rare, and not to be missed. In the rare event someone messes with ABE, my secondary reason for the upthumb is because" Bob Loves Modavox. Who can argue with Bob besides Stylecounciler (pumpedjunk). What about Bob anyway? What about ABE!!!!!

This is my "honest" assessment on an otherwise boring day in the markets.