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How do I redeem an iTunes App Store promo code?

I've started reviewing Apple iPhone games and just had a game developer tell me that he'd like me to check out his game and sent me a promo code. I'm a bit baffled by this: how do I redeem a promo code for an iPhone application so that I don't have to pay for the game?...

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How do I redeem an iTunes App Store promo code?

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