Artificial Life, Inc. (ALIF.OB) Success Prompts Creation of Investment Arm, Targets Young Tech Startups with Synergistic Mobile Technologies

QualityStocks would like to highlight Artificial Life, Inc. (OTCBB: ALIF), a pioneer in artificial intelligence and mobile technology since its inception in Boston in 1994. It is a public US corporation (OTC BB: ALIF) with listing on the Frankfurt Stock Exchange (Frankfurt: AIF.F; Xetra: AIF.DE) and with its headquarters in Hong Kong.

In the company’s news yesterday,

Artificial Life reported the launch of Artificial Life Investments Ltd., a dedicated investment vehicle for the Artificial Life group, as well as its first two investments.

CEO of ALIF, Eberhard Schoneburg, cited rapid organic growth of the Company over the past few years and the achievement of a new level of size and maturity as leading indicators for the strategic viability of this move towards more aggressive investments, mergers and acquisitions.

This move will leverage the flexible investment strategy employed by Artificial Life Investments Ltd., coupling the force of surging demand for proprietary ALIF technologies to a dynamic acquisition methodology, where equity investments are obtained via non-cash assets like accounts receivable, non-exclusive technology licenses and ALIF stock.

Artificial Life Investments Ltd. made its first two investments in late Dec. 2010, in order to bring together unique augmented reality capabilities and a strong Middle East development team:

• $695k for a 19% stake in ARE Augmented Reality Europe GmbH, an augmented reality tech start-up out of Berlin focused on the global purchase, license and sale of rights/patents for mobile applications
• $9.6M in accounts receivable exchanged for a 16% stake in M-Health Middle East Ltd., a newly formed Cayman Islands joint venture, to be headquartered in Dubai (operational in early 2011) and forged by ALIF from two of its long-term partners/clients who posses abundant expertise in Middle East-relative business
• Additionally, $2.3M in accounts receivable were exchanged for a 3.9% stake in M-Health by two of ALIF’s other wholly-owned subsidiaries

Schoneburg explained that the overall investment strategy will extend the Company’s core business, act as a springboard for ALIF’s plans for expansion in 2011 and focus on mobile technologies targeting iPhone/iPad and Android-based platforms. Technologies at the top of the list range from augmented reality to optical recognition, business apps, social networking and even telemedicine.

M-Health will be primarily focused on sales and distribution of mobile telemedicine technology in the Middle East, acting as active seller/distributor for ALIF, providing an open conduit into Middle Eastern markets for technologies like the Mobil Diab® and mobile diabetes monitoring app GluCoMo™.

Artificial Life Investments Ltd. is structured as a wholly-owned Cayman Islands subsidiary and will allow the Aritifical Life group to skillfully manage licensing rights to proprietary technologies, exchanging them for opportune equity in promising young companies with parallel technologies.

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