glad it is useful 
I could not believe it when I found it either - it has been amazing for dd1. I used it (in conjunction with her last school) for name recognition, and sight words (you know, the list you get in reception/year one of key words). dd1 loved matching up the tiles, and would do it for ages, and then (along with work at school too - they were great with using her ipad, and also other reading preparation work) we used the Our Story app.
I loaded up some pictures form school, and typed in sentences based on names, key words (ie activities), and the sight word list, so eg sentences like:
I am riding.
I like trampolining
Here I am riding a horse
etc - all accompanied by relevant photo.
I loaded it all up, and sent it to school with dd1 on the Wednesday. at the weekned, I thought I'd have a go at reading through it with her, to see how she liked it. she read it straight through, with only 3 words she got stuck on (15 pictures with associated sentences. the words she got stuck on were new words). when I told them at school they were
as they hadn't had time to go through it with ehr, and so when I tried it, it was the first time she had seen it! none of us were anticipating that she would be at this level, haivng fiddled around with spelling/writing apps for a while (coupled with a lot of work on basic phonics too).
dd1's ipad has really let her come on in leaps and bounds for some activities - it is so much more than 'just' a gadget for her.