Here comes The First Augmented reality app for windows phone. It is called OMPASS World Cities and is developed by HyongaSoft. They have managed to get the app display the directions of different cities, along with information regarding their respective countries and distances. The Pro version will have a "city life" feature, which can display theater, shopping, road, subway and other local information.

Here is quote from the developers site.

it's name is "OMPASS World Cities".

I think we've made first of Argumented Reality Application on Windows mobile. (but.. where it can be i did not show)

it shows cities of world by direction(arrow) and kilometers and country with OMNIA2's Camera. and fast, and pertty!

but it can show city life information too, theater, foods, park etc.. you can meet our new application about 1 month later!

OMPASS World Cities Demo Video



It's currently in beta and you can expect to hear more in about a month.

Source : HyongaSoft