SAN FRANCISCO, CALIFORNIA--(Marketwire - May 29, 2012) - Bitzio, Inc. ("Bitzio" or "the Company") (OTCBB:BTZO), a leader in apps, mobile media and behavioral analytics, today announced a strategic alliance with Pug Pharm Productions, Inc. ("Pug Pharm") which includes the integration of Pug Pharm's Picnic™ customer engagement engine, a multi-project commitment and shared advisory board positions.

Customer engagement, also known as gamification, is a way to use game design principles to motivate user behavior and encourage loyalty.

Most gamification systems use points, virtual trophies, and badges to reward customers when they complete certain actions, which typically runs its course quickly and then the user disengages. Pug Pharm has a web and mobile gamification platform which achieves the same goals as a regular gamification product, but also grows more useful over time-with built-in brand-awareness and customer capture/retention/activation components.

William Schonbrun, President and CEO of Bitzio commented, "Gamification is really another word for 21st century loyalty. Most platforms only give badges or points. Pug Pharm was brilliant in their platform development because they realized that once you gain something, you should be able to keep it. Users who earn an item in one game, can take it to another, linking experiences and communities from app to app."

Bitzio has plans to deploy the Pug Pharm Picnic™ platform into the next version release of PiciGallery as well as into all new apps developed around entertainment, sports and gaming properties. Pug Pharm Picnic™ will give users the ability see what content their friends are uploading from which apps, see app communities as a whole and what apps are popular among their peers.

"Not only are we tapping into the best of breed gamification technology, we are adding yet another layer to our behavioral analytics powerhouse. Pug Pharm's Picnic™ customer engagement engine enables valuable user behavior and trends across multiple apps to be delivered to the Bitzio Engine, fitting perfectly into our company strategy," continued Schonbrun.

Additionally, Steve Bocska, CEO of Pug Pharm, has agreed to join the Bitzio Advisory Board. "When we were in discussions with Pug Pharm it became immediately apparent there were many more layers than a simple technology usage agreement. Steve and the Pug Pharm team have such deep domain experience in gamification, this has evolved into a true advisory role for each. Pug Pharm has a product and bench strength which will be invaluable to the Bitzio Engine," said Schonbrun.

"Pug Pharm's partnership with Bitzio will capitalize on our complementary skills and expertise to significantly benefit both companies. Bitzio's apps are the perfect fit for our Picnic™ Customer Engagement Engine, and this newly combined 'dream team' will set the new standard for the gamification of online apps and the retention and activation of customer communities," said Steve Bocska, CEO of Pug Pharm.

Bitzio's focus is on developing apps for four key verticals of existing fan bases: sports teams, entertainment, Bollywood and gaming. The Company will also utilize the Bitzio Platform, which includes proprietary technologies such as Bitzio's App Wall to market, monetize and analyze user behavior.

About Bitzio, Inc.

Founded in 2011, Bitzio is a leader in behavioral analytics and mobile media. Through its own proprietary technology and strategic acquisitions of technology and talent, the Company monetizes and analyzes user behavior in order to provide greater access and value to advertisers and increase user conversions within the app experience. Developing apps for four key verticals of existing fan bases: sports teams, entertainment, Bollywood and gaming, Bitzio's approach provides direct access to millions of potential app users. The company aims to be responsible for the download of 1 Billion apps by 2014. For more information, visit [ www.bitzio.com ]. To learn more about Bitzio, connect with them on [ Twitter ] and [ Facebook ].

About Pug Pharm Productions, Inc.

Incorporated in 2008, Pug Pharm Productions Inc. ([ www.pugpharm.com ]) is a technology leader in customer gamification, retention, and activation. Pug Pharm's Picnic™ customer engagement engine is a comprehensive, next-generation platform that captures, retains, and activates customers while eliminating the "loyalty backlash" of less sophisticated technologies. Picnic is the world's first technology platform that simultaneously delivers engagement, motivation, rewards, social matchmaking, item-based gameplay, and direct monetization possibilities.

"Bitzio" and "PiciGallery are a trademarks of Bitzio, Inc.; "Pug Pharm" and "Pug Pharm Picnic" are trademarks of Pug Pharm Productions, Inc. All other companies and products listed herein are trademarks or registered trademarks of their respective holders.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at [ www.sec.gov ]). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.