HandHeld Entertainment Brings Portable, Digital Media Players to Masses by Dropping the ZVUE MSRP 1/

SAN FRANCISCO – August 8, 2005 – HandHeld Entertainment today announced that it’s dropping the Manufacturer’s Suggested Retail Price (MSRP) of its ZVUE™ portable media player to $99.95, from the earlier MSRP of $149.95 as it expands distribution to more than 1,000 retail locations throughout the United States.

"Our mission from the beginning has been to bring mobile media to the mass market," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "I’m thrilled that we can provide the market with a great media player that plays music, displays pictures and plays video at this breakthrough price. Now we can all enjoy digital media on the go. Enjoying quality music, videos and photos on-the-go is something that everybody should be able to do, not just those who can afford $400 for a portable media player that can’t even play video."

Since its introduction to the mass market, the ZVUE has become a favorite of media enthusiasts because it gives them the ability to take their favorite video, audio and digital picture content on the go. Users can put their own media on the ZVUE, or they can download music and video at the ZVUE Web site http://www.zvue.com/downloads/. The site has many free videos, films and music available for download. About the size of a pack of playing cards, the highly portable ZVUE plays full-color videos and MP3 music that can be taken anywhere, anytime.

"The ZVUE’s new $99.95 MSRP is breakthrough pricing for the portable media player market as most of them cost more than $250 and don’t have access to any kind of video content that is readily playable," Oscodar said. "Our ZVUE download site, breakthrough $99.95 pricing, and the availability of the ZVUE in over 1,000 retail locations across the country, make the ZVUE easy to use, easy to afford and easy to find. Customers can check the ZVUE web site for retail locations."

In addition to being available for sale in more than 1,000 retail locations nationwide, the ZVUE is also available through many online sources, including www.zvue.com.

About HandHeld Entertainment
HandHeld Entertainment is the world’s first portable digital entertainment company to offer mass-market portable media players at mass-market prices via mass-market distribution at more than 1,000 retail locations across the United States. A complete end-to-end solution provider in the portable digital media industry, HandHeld Entertainment is also the world’s first company to offer a complete digital entertainment experience by providing access to video, audio and picture content readily available for play on its ZVUE portable media player. ZVUE users can download thousands of free media titles at www.zvue.com/downloads. For more information, visit http://www.zvue.com or call (415) 495-6470.

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HandHeld Entertainment, ZVUE and Digital Media To Go are trademarks of HandHeld Entertainment.