HandHeld Entertainment's ZVUE! personal video player wins Innovations Award from Consumer Electronics Association

SAN FRANCISCO, CA December 17 2003--HandHeld Entertainment today announced that its ZVUE! personal video player has won an Innovations Award from the Consumer Electronics Association.

The ZVUE! will be honored in the Innovations 2004 Design and Engineering Showcase at the International Consumer Electronics Show in Las Vegas from January 8 to 11, 2004. The ZVUE! will be recognized in the Personal Electronics category based on its selection by a professional panel of industry analysts, engineers and journalists. The panel chose the ZVUE! based on a number of standards that include its design and engineering and the components and processes used during manufacturing. The ZVUE! was also singled out based on its unique and novel features such as its ultrabright full-color screen and its affordable $99 price tag.

"It truly is an honor for the ZVUE! to get an independent stamp of approval from the Consumer Electronics Association for its quality in design, engineering and features," said Nathan Schulhof, president and chief executive officer of HandHeld Entertainment and the person known as the father of the MP3 player industry. "This award recognizes the ZVUE! for what it really is - durable, portable and affordable."

Schulhof also won the Innovations award in 1997 for his Listen UP player launched by audiohighway.com. The Listen UP player, which at the time was the only personal audio device that played digital audio, was the beginning of what is otherwise known today as the personal MP3 player. This is shown by the three U.S. Patents bearing his name {5,557,541; 5,572,442; and 5,841,979}.

The hand-held ZVUE! can play videos, music videos and MP3s and features an ultra-bright, 2.5-inch full-color screen that plays full-motion video and displays digital images. About the size of a deck of playing cards, the ZVUE! is designed to be the perfect "must have" gift this holiday season and will fit snugly in the stockings of the "tween" (youth ages 8 to 12), teenage (youth ages 13-19) and early twenty-something (ages 20 to 25) markets. Licensed content for the ZVUE! is available on postage stamp-sized ZCARD! Secure Digital/MultiMediaCards (SD/MMCs) and is priced starting at $6.99.

About HandHeld Entertainment
HandHeld Entertainment was formally created in February 2003 to fill the gap in the portable electronic entertainment industry left open by the absence of affordable full-color hand-held personal video players. Led by an experienced team of seasoned professionals, HandHeld Entertainment is on track to become the foremost provider of digital audio/video media content and the hardware necessary to view it. For more information, visit www.hheld.com or www.zvue.com, or call (415) 495-6470.

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





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