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FOR IMMEDIATE RELEASE
SAN FRANCISCO – March 2, 2006 – ZVUE Corporation. (OTC BB: HNDH) today
announced the completion of a reverse merger and the closing of a $7.6 million private placement, details of
which are described in current reports filed with the Securities and Exchange Commission on Form 8-K. Trading in
the common stock of ZVUE Corporation. will begin on March 6, 2006 on the Over-The-Counter Bulletin Board
under the symbol “HNDH.”
ZVUE Corporation, a “pure play” digital-media-to-go company with its ZVUE™ family of mass-market portable
media players as well as its own online video content store, completed a reverse merger with Vika Corp. on
February 10, 2006. Subsequently, ZVUE Corporation. completed the sale of 3,802,500 shares of its common
stock at $2.00 per share through a private placement to institutional and accredited investors resulting in
gross proceeds of $7,605,000 to the company. The proceeds will be used by the company for general working capital
purposes. After taking effect of both the reverse merger and private placement, ZVUE Corporation. has
approximately 13.9 million shares of common stock outstanding, of which approximately 2.4 million shares of
common stock are in the public float.
ZVUE Corporation. introduced its entry level ZVUE (the Model 200) in 2003 at a price point of $99.95.
Available today in more than 1,800 Wal-Mart stores around the United States, the mass-market-priced ZVUE is the
perfect digital-media-to-go-solution because ZVUEs allow users to watch their favorite videos, listen to music
or look at photos anywhere, anytime. ZVUE Corporation. has also announced three new ZVUE models, the first
of which is slated for completion in the first quarter of 2006, and each of which is upgradeable and designed to
take advantage of dropping storage pricing to further promote customer flexibility at reasonable price points.
Additionally, the company recently launched the beta version of ZTV™, its video download store, at www.zvue.com,
a place where lovers of digital video on the go can find hundreds of free video selections in a dozen genres, as
well as hundreds of Pay ’n’ Play™ video selections available for online purchase from $0.99 to $1.99 per
downloaded video. ZVUE Corporation. also announced plans in January to expand ZTV in mid-2006 with a video
subscription service known as ZVISION™. Additional details on ZVISION will be revealed by the company at a
future date.
Special Note: The common stock sold in the private placement has not been registered under the Securities Act
of 1933, as amended or state securities laws and may not be offered or sold in the United States absent
registration with the Securities and Exchange Commission or an applicable exemption from the registration
requirements. The common stock was offered and sold only to accredited investors in offerings exempt from the
registration requirements of the Securities Act. This announcement is not an offer to sell or the solicitation
of an offer to buy shares of common stock of ZVUE Corporation..
About ZVUE Corporation.
ZVUE Corporation. is a “pure play” digital-media-to-go company with a family of mass-market portable media
players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media
players are available for purchase online and in more than 1,800 retail locations across the United States,
while portable video lovers can visit ZTV (ZVUE Corporation.'s video content store at www.zvue.com) to buy
pay-per-download videos or download thousands of free media titles. For more information, visit www.hheld.com or
call 415-495-6470.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements. To the extent that any statements made in this release
contain information that is not historical, these statements are forward-looking. These statements are subject
to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ
materially from those expressed or implied by these forward-looking statements. These risks and uncertainties
include, without limitation: ZVUE Corporation.'s dependence on contract manufacturing of its products; its
reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely
manner new products and services; its ability to predict market demand for, and gain market acceptance of, its
products and services; the impact of competitive products and services and of alternative technological
advances; its ability to raise additional capital to finance its activities; its limited and unprofitable
operating history; its ability to operate as a public company; its ability to reduce product return rates;
the affect of inventory and price protections required by major retailers; the availability and affordability
of digital media content; its ability to protect its proprietary information and to avoid infringement of
others' proprietary rights; its ability to attract and retain qualified senior management and research and
development personnel; the reliability and security of its information systems and networks; and other factors
described in ZVUE Corporation.'s filings with the Securities and Exchange Commission, including Annual
Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. These forward-looking
statements are made as of the date hereof. ZVUE Corporation. does not undertake any obligation to publicly
update any forward-looking statements. As a result, investors should not place undue reliance on these
forward-looking statements.
MEDIA CONTACTS:
David Politis, Politis Communications, 801-523-3730 (wk), 801-556-8184 (cell),
dpolitis@politis.com or
Russell Page, Politis Communications,
801-523-3730 (wk), 801-787-8435 (cell), rpage@politis.com.
INVESTOR CONTACT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com
ZVUE Corporation, ZVUE, ZTV, Pay ’n’ Play and ZVISION are trademarks of ZVUE Corporation.. All other
trademarks are property of their respective owners.
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