Target Agreement is the Third Following Deals with Best Buy and Wal-Mart

ZAGG Inc. (OTCBB: ZAGG), maker of specialty electronic accessories, recently announced it has entered into a distribution agreement with Target Corp. (NYSE: TGT) to provide the retailing giant ZAGG’s latest product, invisibleSHIELD(TM), according to TMCNet.

Salt Lake City, Utah-based ZAGG manufactures protective clear coverings and accessories to the consumer electronics industry. InvisibleSHIELD protects personal electronic accessories such as cellphones, digital cameras and laptops from scratches, marks and nicks.

InvisibleSHIELD is made from ultra-strong patented film initially produced for the U.S. Department of Defense to protect helicopters from sand and other debris from damaging the blades, but the company is moving forward to expand its applications.

“Electronics owners who want to protect their gadgets from scratches, but still be able to show them off, will be excited to find the invisibleSHIELD in their favorite Target stores,” Derek Smith, ZAGG’s vice president of sales told TMCNet.

According to ZAGG, the introduction of invisibleSHIELD protection solution is the first of its type in the marketplace, but not the first distribution agreement. The latest distribution agreement with Target comes on the heels of two previous agreements made with large retail chain stores Best Buy and Wal-Mart.

“We associate Target with being very trend-forward and innovative, which is a great match for ZAGG and our award-winning products,” added Robert G. Pedersen II, ZAGG’s president and CEO.

Analysts familiar with company say though margins have narrowed significantly from the shift away from Web site sales to brick-and-mortar distribution, elevated sales volume maintains the company’s earnings growth and shareholder value.

The company also announced the launch this summer of AppSpace.com, a Web site for the handheld applications market.

About ZAGG Inc. (ZAGG)

ZAGG Inc. (ZAGG) designs, manufactures and distribute protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD and ZAGGaudio.

The invisibleSHIELD is designed specifically for iPods, laptops, cell phones, digital cameras, personal digital assistants (PDAs), watch faces, global positioning (GPS) systems, gaming devices and other items. ZAGG offers over 3,000 precision pre-cut designs with a lifetime replacement warranty through online channels, big-box retailers, electronics specialty stores, resellers, college bookstores, Mac stores and mall kiosks.

During the year ended December 31, 2008, the ZAGGaudio line of electronics accessories and products was released. The flagship product within ZAGGaudio is Z.buds.

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. BeaconEquity Research nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.