Using it’s small form factor to advantage, the Modu device can be fitted into different “jackets” to change what the device can do.

“It’s truly the smallest and lightest phone in the world, but the idea is that most of the time you won’t operate it by itself, you will operate it within a jacket or within a Mate,” Modu’s CEO Dov Moran told AbsoluteGadget.com.

“In the evening if you go to the movies and don’t want to take the full keyboard with you, or the digital camera with 5-megapixels, whatever it is, if you just want to have the communication device with you, you can carry the Modu device.” 

However, the company also plans to integrate the Modu device into other consumer technologies, adding phone capabilities.

“We have begun working with three manufacturers of other products only about a month ago and the feedback from them is unbelievable, because with very little effort they can make a device with a Modu slot that gives them much broader functionality and features,” Moran said.

“So we expect such devices from a variety of manufacturers from different areas – GPS, camera, picture frame, Dect phone – around the end of 2008 or the start of 2009 and some of our partners are talking about presenting such devices at CES 2009.”