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Cary, N.C., firm offers mobile-device software that tracks personal habits
[January 31, 2006]

Cary, N.C., firm offers mobile-device software that tracks personal habits


(News & Observer, The (Raleigh, NC) (KRT) Via Thomson Dialog NewsEdge) Jan. 31--Cary's 2ThumbZ Entertainment is getting serious.

The company, which built its business on the lighter side of cell-phone software, today will begin offering health-care products that allow people to count and track calories, log their workouts and try to stop smoking using programs on their mobile phones or personal digital assistants.



The products 2ThumbZ has developed with UNC Health Care are the beginning of a trend toward more serious mobile-device software, 2ThumbZ CEO Mark Baric said.

"It's really a first foray into applications that are nonentertainment-oriented on your cell phone," he said.


The collaboration between UNC and 2ThumbZ came out of their physical proximity in the Triangle and a shared interest in tools promoting good health. The partnership gives 2ThumbZ access to the medical center's brand and its knowledge. UNC gets royalties for each sale and worldwide exposure, Baric said.

Starting in April, 2ThumbZ's wellness programs will cost $9.95 each. Until then, customers can download the health-care applications for free at unc.2thumbz.com.

With U.S. consumers tapping and typing on about 200 million mobile devices such as cell phones and PDAs, the potential market is significant for 2ThumbZ, a small, profitable, three-year-old company.

2ThumbZ doesn't face much competition in the area, but there isn't much consumer interest in paying for mobile health and wellness applications, said Jupiter Research senior analyst Julie Ask.

A Jupiter survey showed that 1 percent of mobile consumers said they would be interested in menu-planning and nutrition tools, and another 1 percent said they'd pay for mobile software to help manage their health. Most young people, who are the main consumers of mobile content, simply aren't very concerned about their health yet, she said.

"Once you get past ring tones, games and wallpaper, you go over a cliff in terms of adoption of any one service," Ask said. Still, even 1 percent of 200 million is substantial, she said.

Seattle research firm M:Metrics' monthly data shows that about 3.5 million people are looking at health-related information on their mobile phones.

2ThumbZ is marketing straight to consumers through its Web site and its partner wireless carriers, and it's talking to health insurers and large employers that would distribute the tools to members and workers, Baric said.

2ThumbZ also is a development partner with RIM, the company that makes BlackBerry mobile devices. That means that the smaller company has access to RIM's technical expertise, and is listed in marketing materials as the sole provider of health-wellness-fitness applications for BlackBerries, Baric said. 2ThumbZ expects to give the software to RIM's employees for free.

The company also is discussing a contract with RIM for access to the 3 million BlackBerry customers worldwide. The people who use BlackBerries or Palm devices are typically 40 to 55 years old, financially successful and health conscious, Baric said.

"That's a great target audience," he said. "A 45-year-old may not be interested in playing games, but he is interested in a wireless type of application that links back to the data that he could send to his doctor or nutritionist."

2ThumbZ's software allows people to save workouts or eating diaries on their cell phones or PDA devices for up to four days. If they want to track the data longer, they can save it for up to two years on 2ThumbZ's servers. That service costs $19.99 a year.

2ThumbZ, which has seven employees in Cary, one in Seattle and development teams in India and Israel, became profitable and achieved positive cash flow last year, Baric said. He's looking for an even brighter 2006.

"I think you're going to see some big announcements from us," Baric said.

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