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HandHeld Entertainment Announces Plans to Launch a Digital Content Download System

SAN FRANCISCO - January 19, 2005 - HandHeld Entertainment today announced plans to launch a digital content download system for users of its ZVUE personal media player.

When formally launched later in the first half of 2005, the HandHeld Entertainment digital content download system will allow individuals to identify, select and legally download digital content such as movies, videos, television shows, cartoons, music, audio clips and more for portable storage and playback on ZVUE personal media players.

Sneak previews of the as-yet-unnamed content download system were provided to journalists and industry analysts attending the Showstoppers media reception held the evening of Thursday, January 6 at the Convention Center of the MGM Grand Resort and Casino in Las Vegas.

"I think it's clear to everyone connected with consumer electronics that the personal media player industry will be a multi-billion-dollar market," said Jeffrey D. Oscodar, president and chief executive officer of HandHeld Entertainment. "However, today's personal media players are too hard to use, too expensive to buy, and do not have easy access to legal digital content. Today's announcement about the HandHeld Entertainment digital content download system is just one part of our plan to provide consumers with an easy-to-use, mass market priced solution for digital media on the go. This is what consumers are demanding, and we are responding to that demand."

Today's digital content download system announcement follows an announcement made two weeks ago during the 2005 International Consumer Electronics Show held in Las Vegas that HandHeld Entertainment has entered into a content agreement with Like Television to provide ZVUE users with access to thousands of legal video downloads. Memberships to Like Television are $14.95 per month or $125 per year. However, coupons available to ZVUE users bring the membership down to $9.95 per month or $100 per year.

"The content agreement with Like Television is just our first step on the road to delivering an end-to-end portable digital media solution," Oscodar said. "And when we formally launch our digital content download system later this year, Like Television content will be part of that solution. At InfoGear (my previous company), we drove market acceptance of our devices by coupling them with a great service with more than 100 content partnerships. By doing so, our customers could enjoy our products right out of the box without having to search for content. The ZVUE is a great personal media player at a great price, and I'm confident that by adding a great service to this package, we will achieve mass-market sales."

About HandHeld Entertainment

Formed in February 2003, HandHeld Entertainment is a complete end-to-end solution provider in the portable digital media industry. The ZVUE personal media player allows users to access digital media on the go, including high-quality video content, music and digital photos. ZVUE users can download thousands of media titles and learn valuable technology trends via the HandHeld Web site. For more information, visit www.hheld.com, www.zvue.com, or call (415) 495-6470.

HandHeld, HandHeld Entertainment and ZVUE are each trademarks of HandHeld Entertainment, Inc.

MEDIA CONTACTS:

Russell Page, Politis Communications, 801-523-3730(wk), 801-787-8435 (cell), rpage@politis.com or
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com