B2b deployment of app must go through App Store?

We’ve got a client for which we’ve developed a reasonably sophisticated interactive calculation tool in Flash/AS3. The client is now asking if we can reformat the tool for use on mobile devices. If we wait for the upcoming CS5 my understanding is that we can publish a native app for the iPhone but it will have to be distributed through Apple’s App store. Have I got this right? This is a specialized tool and would only be useful to my client’s distributors (about 5000 end users), it seems silly to have to distribute this type of app through a public delivery system geared more toward retail sales.
Currently we’re recommending to our client that we re-write the entire app in php and use simple HTML for the front end. This would be a major re-write and would force us to maintain two separate versions of the tool because of a kiosk version that must run standalone without server support. Does anyone have a better suggestion?

I don't think there is a way to determine the source of deployment. 
Suggestion would be to turn off features that you would not like to be present when deployed through store and test that as a beta app to make sure it is working as expected and then submit that app to the store. 
More information about beta testing an app can be found in the following link. 
http://msdn.microsoft.com/en-us/library/windows/apps/dn832612.aspx

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