modu invented, developed and is manufacturing tiny modular phones that can be “modufied” by connecting them with sleek devices known as fys. These devices enhance the functionality of the phone so users can have the smallest possible phone while enjoying a full range of features whenever they want.
The company was founded in 2007 by CEO Dov Moran, whose previous company, msystems, invented the USB Flash Drive (DiskOnKey) and sold to SanDisk for $1.6 billion.
modu recently launched its smallest, most versatile phone yet: the modu T. At 7.5 cm long, it has been cited by Guinness World Records as the world’s lightest touch phone. The modu T phone offers everything you want in a smartphone: 3.5G connectivity, GPS, access to social networks, texting, music functionality, a 2.2” touch screen and 2 GB of storage (expandable to 32 GB memory card). It also includes popular applications like YouTube, Facebook, Twitter, Flickr, eBuddy, Google Search and more.
This user-friendly phone can be adapted to be anything you want it to be: a tiny phone for your pocket or a personal media center. You can camerafy it, sportify it, boostify it or textify it, with more fy devices to come. Soon to be launched in various countries, the modu T offers superb call quality and an easy-to-use interface, and runs on Qualcomm’s Brew operating system.
Also soon to be launched is the long-awaited modu W. - an android based Wi-Fi device with 2.2” touch screen. The modu W is feature rich device with unlimited applications through the modu market. The device allows users to talk, get social, chat, browse the web, play games, watch videos, listen to music and much more.
Modu at MWC 2008Added:
Above: modu Screenshot -- #1
Google Spends $4.9 Million On Modu Patent Portfolio (techcrunch.com) 
Israeli Zoolander Handset Maker Modu Raises $100M (thealarmclock.com)