French app development team PresseLite appears to have the first Augmented Reality (AR) for the iphone in the AppStore!. Though we don’t know how exactly they did it. The App is called Metro Paris  Subway (iTunes Link), the application itself is not new,but it released a new version last week that added an AR overlay which displays information about Paris businesses when you look at the city through your iPhone’s camera!.The App packs quite a punch at  only $0.99.

Produced By: PresseLite | Via: AppStore | Price : $ 0.99

(French App)

Augmented Reality is the term for a long-developed set of technologies that place layers of information on top of a view of the real world. Developers and AR-watchers have believed that no AR apps would be able to go live in the iTunes App Store until the next version of the iPhone OS is released in Fall.

The AR capabilities only work on the new iPhone 3Gs both GPS and a compass are used to determine location and direction being pointed at.