That was the announcement done at the today's MAX Keynotes. On theAdobe Labs site you can watch a videodemonstration of applications from the Apple App Store built using Flash technology.
Below there is the video that I've taken during the Keynotes:
From the Adobe Labs:
Flash Professioal CS5 will enable you to build applications for iPhone and iPod touch using ActionScript 3. These applications can be delivered to iPhone and iPod touch users through the Apple App Store.*
A public beta of Flash Professional CS5 with prerelease support for building applications for iPhone is planned for later this year
Maybe, the most interesting part of that is the fact that they'll directly compile to OS bytecode, so there'll be no Flash Player (nor AIR), a very "integrated" thing i hope to test very soon.
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