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NEWS RELEASE

GestureTek Inc. and Telefónica announce strategic partnership and investment agreement

SUNNYVALE, CALIFORNIA – (December 5, 2007) – GestureTek Inc. - world leader and patent-holder in computer vision and gesture-recognition technology for presentation, information and entertainment systems - today announced a strategic investment in the company by Telefónica SA, Spain’s leading telecommunications operator.  The agreement finalizes a minority investment in GestureTek to finance business expansion and market growth.
A technology partnership will allow for further development and commercialization of new gesture-controlled gaming and navigation applications.  The two companies will jointly penetrate new markets for this trailblazing technology, both in the mobile sector and on other strategic platforms.
The announcement comes just months after the successful launch in Japan of GestureTek’s ‘EyeMobile® Engine’ on the DoCoMo FOMA™ 904i and 905i series handsets, and DoCoMo Capital’s concurrent investment in GestureTek. DoCoMo is Japan’s largest wireless operator and is heralded as an early adopter of new mobile technologies.

GestureTek is the inventor of EyeMobile®™, the world’s first gesture-controlled user-interface for mobile devices.  This software-only solution provides camera phone users with the ability to play games, scroll menu items, navigate way-finding maps and browse web pages simply by tilting or moving their mobile phones. 

The EyeMobile® software uses a mobile phone’s existing camera to intelligently recognize and respond to hand and body movement - providing a simpler, more intuitive and more entertaining interface than with conventional keys or with hardware-based solutions.
Over 50 million mobile handsets currently have GestureTek’s technology available to them.  Enabled devices include those on the Microsoft Windows Mobile 6 platform, NTT DoCoMo 904i and 905i series handsets, and more than 30 models from North American carriers operating on the BREW platform, such as Verizon, Alltel and Cellular South.

Video gesture control technology, patented by GestureTek, has been licensed by Microsoft, Sony, Hasbro and various mobile game developers for their gaming products.  Games powered by the EyeMobile® Engine have also been showcased in pre-eminent awards programs.  The technology was recognized at the BREW 2006 Game Developer Awards as the “Best Up and Coming Application”, at the 2006 International Mobile Gaming Awards, and was the IGN Editors Choice Award for Best Mobile Game, Best Puzzle Game and Most Innovative Design.  Most recently, GestureTek’s EyeMobile® Engine was selected as Best Mobile Entertainment Application at LAPTOP Magazine’s 2007 ‘Best of CTIA Wireless I.T. & Entertainment Awards’.
Users of handsets enabled with GestureTek Mobile’s EyeMobile® Engine can now download over 60 gesture-controlled mobile games and other applications.  These deliver the capability to scroll menu items, navigate maps with GPS integration, browse photos and scroll web pages on a full browser window – simply by shaking, rocking or rolling their phone.

“GestureTek’s ongoing innovations in gesture-controlled games and applications, three-dimensional camera software and immersive technologies, along with growing support from mobile industry leaders such as Telefónica and DoCoMo, will revolutionize gaming as we know it, and bring the benefits of this state-of-the-art technology to many other exciting environments.  Clearly, we’re on the cusp of a paradigm shift in the mobile world, from button-presses to natural human interfaces,” said Bill Leckonby, Chief Executive Officer, GestureTek Inc. 
GestureTek technology works on any device or surface.  Whether a mobile phone, game console, PC or set-top box, if the device has a built-in camera, GestureTek’s software can deliver groundbreaking “Wii-like” gesture-control.  The company’s innovative immersive technology even lets users transport themselves into a 3-D virtual world and interact with characters and objects, in real time and with no special gear or equipment.

“We are excited about our collaboration with GestureTek in growing this new and exciting technology. As the leader in the field of gesture-recognition, GestureTek was our choice as a partner in bringing this technology to the mainstream for both mobile services and in the home,” said Russ Shaw, Director of Innovation at Telefonica S.A..

About GestureTek Mobile
GestureTek Mobile is a world leader in gesture-based user interface for mobile devices and the inventor of the patented, award-winning EyeMobile Engine.  EyeMobile Engine is the world’s first software-only solution that uses the existing camera on a cell phone or mobile Internet device to provide people with the ability to interact with their device using gestures. By shaking, rocking or rolling the phone (or making hand motions in front of the phone) users can answer a call, play mobile games, scroll menus, navigate maps, view images and documents, browse the web, enter text messages and do anything else they would normally do on their mobile device, without pressing buttons.  Licensees of GestureTek’s patents or technologies include Sony for the EyeToy, Microsoft for the XBOX 360 and Hasbro for the ION Educational Gaming System.  GestureTek Mobile’s award wins include the 2008 Mobile Innovation Global Award, the LAPTOP Magazine ‘Best of CTIA’ Award and the NATPE++ Award for the Hottest Mobile Application.  Games powered by the EyeMobile Engine have been recognized by the BREW Game Developer Awards, the International Mobile Gaming Awards and the IGN Editors Choice Awards.  GestureTek Mobile developed the first gesture-recognition software to be embedded in NTT DoCoMo phones in Japan and provided the software for the first gesture-controlled mapping application on a cellphone.  EyeMobile supports many handsets on the JAVA, BREW, SYMBIAN, WINDOWS MOBILE and DOJA platforms. Applications are available for over the air download on the Verizon network.  Full developer tools are available on the Qualcomm website.   A catalogue of turnkey games and applications for multiple platforms are available from the GestureTek mobile site. GestureTek Mobile is a business unit of GestureTek Inc., pioneer, patent-holder and world-leader in computer vision control for presentation and entertainment systems.

GestureTek technologies have international patent protection. U.S patents include 5,534,917 (Video image based control system), 7,058,204 (Multiple camera control system), 7,227,526 (3D-vision image control system), 7,379,563 (Bi-manual movement tracker) and 7,379,566 (Optical flow-based tilt sensor). EyeMobile® is protected under patent TMA 700,194 with the Canadian Intellectual Property Office for "mobile device application software featuring gesture recognition technology."

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