New ZOrg Media Organizer From HandHeld Entertainment Makes Managing Videos, Music and Pictures Easier, Faster and More Enjoyable Than Ever Before

SAN FRANCISCO – January 6, 2006 – HandHeld Entertainment™ today announced it has developed a new media organizing software called ZOrg™ for managing videos, music, pictures and other digital media content more easily. ZOrg is available for free download to users of the ZVUE™ media player at http://www.zvue.com/help/500-ZOrg101Tutorial.html.

A Windows XP application, ZOrg allows users to easily manage digital content on their computers for use on ZVUE portable media players. ZOrg users can also convert content copied from CDs and DVDs, or downloaded from the Internet, into a ZVUE-readable format using HandHeld’s ZFLICKS™ software. Once ZOrg converts the variety of video formats (MPEG-1, MPEG-2, MPEG-4, AVI and WMV), ZOrg allows users to easily locate and organize files, as well as delete content once the user is finished enjoying it. Music enthusiasts can also copy compatible MP3, WMA and Ogg Vorbis audio files into their ZVUE using ZOrg.

“ZOrg simplifies arranging your movies and music for playing on your ZVUE,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We are always seeking to make the ZVUE experience more enjoyable for ZVUErs the world over, and ZOrg accomplishes this.”

In addition to converting media files to ZVUE friendly formats, ZOrg provides additional features that allow users to increase or decrease the size of media files, choose between stereo or mono formats for audio files, and adjust the quality of downloads depending on the size of storage media being used.

HandHeld Entertainment & ZVUE at CES 2006 in Las Vegas
HandHeld Entertainment will highlight its new line of ZVUE portable media players at CES 2006 Jan. 5-8 in booth #70454 of the Sands Convention Center in Las Vegas. Credentialed journalists and analysts interested in coordinating a private briefing with HandHeld Entertainment executives before, during or after CES should contact either Russell Page or Matt Hargreaves of Politis Communications by phone at 801-523-3730 or via e-mail 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, ZOrg, ZVUE and ZFLICKS are trademarks of HandHeld Entertainment.