A technology spin-off from Cambridge University is testing a new projector system that could turn walls and tables into interactive screens.

Light Blue Optics was set up by four former Cambridge students and works on enhancing pico-projector technology from its Colorado Springs development base in the USA. The company recently succeeded in generating more than $57 million in investment funding to develop its projects.

Its first generation systems are interactive projectors that can turn any flat surfaces into a ten-inch touch screen, allowing users to interact with multimedia applications that include projecting restaurant menus onto tables and providing spill-proof touch screens in the kitchen.

Trials are currently underway in branches of the KFC fast food chain in Nuneaton and Cannock in the West Midlands. Chris Harris, chief executive, said, "They have been well received by the kids using them and provides the first step along the road to add an ordering system."

The company is now looking to work on its second generation projectors, which focus on embedded products that will aid the workings of car satellite navigation systems, camcorders and mobile phones.

The company was this morning lauded as the most highly rated university spin off as rated by Your Business tracks on its Top 50 listing.