By Michelle Lee, Hollywood.com Staff

Beauty is only fur deep for the 29 dogs who competed at the World's Ugliest Dog competition on Friday in Petaluma, Calif.

Competing for bragging rights, a year's supply of dog cookies and a grand prize of $1,000, a patchy-haired Chinese Crested named Mugly from the UK took home the dubious title.

""I couldn't speak when they announced Mugly's name,"" his owner Bev Nicholson said. ""I didn't know which way to look. I was shaking as much as the dog.""

Although Nicholson acknowledges her pet's unusual looks, she also says ""he's beautiful, inside and out.""

Watch Mugly in action (in a little hat):