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Former Napster Software Engineer Named V.P. of Engineering at HandHeld Entertainment

SAN FRANCISCO--HandHeld Entertainment(TM) (NASDAQ:ZVUE) today announced that it has named Peter Allen as its vice president of engineering.

Allen will ensure the smooth integration of media content between HandHeld Entertainment's Web sites (currently Putfile.com(TM), Holylemon.com(TM), Unoriginal.co.uk(TM), Dorks.com(TM), YourDailyMedia.com(TM), FunMansion.com(TM) and ZVUE.com(TM)) and will help build a scalable platform upon which the company can rapidly deploy revenue-generating advertising and promotional products and services.

With more than 20 years of experience in the engineering and technology fields, Allen has worked for numerous top tier software companies prior to joining HandHeld Entertainment. Notable Web development and management experience includes his work as the director of client software engineering at the peer-2-peer music service Napster, where he was commissioned in the midst of complex legal issues to design, build, beta test and deliver the new, secure and legitimate subscription service backed by licensed digital rights management (DRM) content. Allen led teams who delivered a secure and reliable system for Napster from scratch in just 11 months.

"I am eager to serve our users by integrating HandHeld Entertainment's current and future Web properties and creating a network that can scale with the rapid growth we anticipate, as well as quickly implementing single projects across our multiple Web properties," Allen said. "HandHeld is a great company, team and service. I feel like I have joined a seasoned baseball team with two men already on base as I step up to the plate."

President and Chief Executive Officer of HandHeld Entertainment Jeff Oscodar said he is happy to have someone with Allen's proven track record on the team.

"With more than 20 years of experience in engineering and computer science, particularly his time spent building Napster's technology, Peter is an immediate asset to HandHeld," Oscodar said. "Peter's experience in building seamless, scalable networks will definitely augment our advertising initiatives and help us accelerate our revenue growth."

Allen has also held senior positions at Bell Labs Research, PayPal, Visioneer and the Go Corporation. He received his bachelor's degree in electrical engineering and computer science at Princeton University. Additionally, Allen serves as a founding member and board director of www.gobair.com and is a recognized civic and forum speaker on the issues of DRM and municipal networks.

Taken collectively, HandHeld Entertainment's network of Web sites includes more than 500,000 online videos. The premium and free content available for purchase, download or streaming on these Web sites includes music videos, anime features, television shows, movies, cartoons, independent films, documentaries, and news, entertainment and sports programs from companies ranging from Sony BMG, Showtime and IMG Media to Canadian Broadcast Corp., Egami Media and Fun Little Movies, as well as free user-generated and user-submitted video selections and other forms of media. Customers can also select from millions of songs that can be played on a personal media player through HandHeld Entertainment's relationships with eMusic and Rhapsody (see http://www.zvue.com/html/music.php).

About HandHeld Entertainment, Inc.

HandHeld Entertainment (NASDAQ: ZVUE) is a global digital entertainment company. Its network of Web sites (Putfile.com, Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, Dorks.com, FunMansion.com and ZVUE.com) now houses more than 500,000 user-generated and premium videos in total - videos available for purchase or free viewing. Its ZVUE personal media players are mass-market priced and currently available for purchase online and in more than 2,200 Wal-Mart stores throughout the U.S. For more information, visit www.hheld.com.

HandHeld Entertainment, Putfile.com, Holylemon.com, Unoriginal.co.uk, Dorks.com, YourDailyMedia.com, FunMansion.com and ZVUE.com and are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

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