HandHeld Entertainment�s ZVUEs Now Support Legal Download Video Sites with Windows Media Video & DRM

(I-Newswire) December 28, 2005 - SAN FRANCISCO � December 29, 2005 � HandHeld Entertainment� today announced that its entry level ZVUE� (v1.2) now supports all legal download and streaming video Web sites on the Internet that deliver video content using Windows Media Video (WMV) with Microsoft's secure Digital Rights Management (DRM) software.

HandHeld Entertainment achieved DRM compatibility by adding an internal real-time digital clock to its entry level ZVUE portable media player. As a result, HandHeld Entertainment is the first company in the world to sell a Windows DRM-enabled portable media player at less than $100.

"The bottom line is this � the real-time clock and DRM software make it possible for ZVUE users to legally acquire any video off the Internet that's DRM-compatible," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "It's that simple. As a result, the ZVUE is the world's only portable media player priced under $100 that supports DRM and delivers legal media to go for on the go consumers."

Supporting Microsoft's DRM allows all ZVUE v1.2 users to download video and audio content from the ZVUE download site at http://www.zvue.com/downloads/, as well as at hundreds of online locations, such as Walmart.com, Rhapsody and Yahoo! Music, among others.

A Brief HandHeld Entertainment & ZVUE History

HandHeld Entertainment announced its first ZVUE in mid-2003 with a $99 price point and shipped its first units before Christmas 2003. Version 1.2 of the ZVUE is currently available for purchase online and in more than 1,500 retailers throughout the United States, including selected Wal-Mart stores and Discovery Channel Store locations nationwide.

In October 2005, HandHeld Entertainment announced plans for a next generation ZVUE that will be slightly smaller and lighter than v1.2 of the ZVUE and will feature on-board flash memory, a rechargeable lithium-ion battery and will be compatible with WMV and Windows Media Audio (WMA). At the time, the company announced that the so-called "next generation" ZVUE would be the first PMP priced under $200 to support DRM.

"The truth of the matter is that all of our ZVUEs will support legal downloads, as well as free video and audio content, from the entry level ZVUE that's being sold around the country right now to the newest ZVUEs we'll be introducing next week in Las Vegas at the world's largest technology event � the Consumer Electronics Show," Oscodar said.



HandHeld Entertainment & ZVUE at CES 2006 in Las Vegas

HandHeld Entertainment will be exhibiting at CES 2006 January 5-8 in booth #70454 of the Sands Convention Center in Las Vegas. Companies and individuals interested in meeting with HandHeld Entertainment during CES may email Kathryn Sarkis at kathryns@hheld.com or call her at 415-495-6470.

Credentialed journalists and analysts interested in coordinating a private briefing with HandHeld Entertainment executives during or before CES should contact either Russell Page or Matt Hargreaves of Politis Communications by phone at 801-523-3730 or via email at rpage@politis.com or mhargreaves@politis.com, respectively.

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 1,500 retail locations across the United States. 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 and ZVUE are trademarks of HandHeld Entertainment.

CONTACTS:
Russell Page, Politis Communications, 801-523-3730(wk), 801-787-8435(cell), rpage@politis.com or
Matt Hargreaves, Politis Communications, 801-523-3730(wk), 801-376-2272(cell), mhargreaves@politis.com

Company Contact Information
HandHeld Entertainment