World's smallest (AP file photo)

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Modu founder Dov Moran displays the Modu, a a tiny cell phone that pops into interchangeable "jackets" to become a bigger, smarter phone, or into other gadgets to connect them to the Internet, Tuesday, Feb. 5, 2008. The company, an Israeli start-up, plans to launch the phone on Oct. 1 with Telecom Italia SpA in Italy, OAA Vimpel Communications in Russia and Cellcom Israel Ltd. (AP Photo/Mark Lennihan)