HandHeld Entertainment Launches Dorks.com 2.0, Adding Revenue Generating Opportunities and Increasing User Control to Popular Humorous Video Site

February 21, 2007; 07:42 AM
HandHeld Entertainment™ (NASDAQ:ZVUE)(NASDAQ:ZVUEW) today announced the beta launch of a new Dorks.com™ Web site (called Dorks 2.0), the next step in the evolution of the popular user-generated, humorous video site.

Dorks.com was acquired by HandHeld Entertainment in November 2006, and it is part of HandHeld’s network of Web sites which also includes Putfile.com™, YourDailyMedia.com™, FunMansion.com™ and ZVUE.com™. In combination, these HandHeld Entertainment Web properties attracted more than 13.7 million unique visitors in January 2007.

“The launch of Dorks 2.0 is another step towards increasing the revenue generated by our network of Web sites and towards our goal of being cash flow positive by the end of 2007,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “Dorks.com will continue to provide free hosting of user-generated and user-submitted content to its visitors, and the new site will also provide users with a more dynamic and easier-to-use experience.”

Dorks 2.0 capitalizes on Open Source technologies to create a complete user experience. Some of the features released in this version include:

• A “My Account” area that permits users to register and manage their user profiles. This includes managing the videos, pictures, games and sites they have uploaded.
• New “video uploading capabilities” for users to upload content up to 100MB in size in the following formats: wmv, mov, avi, flv and mpeg. All files will then be encoded by the Web site into flash (flv) for streaming on the site.
• “Flash Player technology”– the new standard for players – catering directly to user-generated videos by creating cross-platform sharing ease and allowing videos to be embedded in popular sites such as MySpace, in turn making such videos more viral in nature.
• A “User’s Stuff” area where all-new content is directly uploaded and immediately published.

Additionally, users will now have the ability to rate videos, games and pictures as inappropriate (should they choose to do so).

“I know that Dorks users will love the changes we’ve made to the site,” said John Kowal, King Dork of Dorks.com. “With the new design we’ve made it possible for our users from around the world to have a greater hand in shaping what content is funny enough to show our audience. By incorporating Web 2.0 features into Dorks.com – such as social networking opportunities, tagging and more – registered users can upload and share the best and funniest videos they can create or find.

“Even more exciting is that we have completed our initial work on the new CMS (content management system) and should be rolling these options, and more, out to our network of sites shortly. It is our goal to continue to build features that users want in a site, while utilizing a healthy dose of AJAX and CSS (cascading style sheets) into Dorks.com to enhance the user experience.”

HandHeld Entertainment is deploying a content management system to support Dorks 2.0, technology the company expects will streamline its ability to update, manage and maintain Dorks.com. HandHeld Entertainment plans to implement the CMS technology throughout its network of Web sites once it completes the beta launch of Dorks 2.0.

“This is another example of the value that we are adding to our Web properties,” Oscodar said. “The great features implemented in the new Dorks CMS will be implemented throughout our network. This will create greater synergies and efficiencies for us and our advertisers, while also making it easier for consumers to use and access the content we have in our network of Web sites.”

HandHeld Entertainment now has more than 425,000 free and premium videos available to users through its network of Web sites, which includes ZVUE.com, Putfile.com, YourDailyMedia.com, FunMansion.com and Dorks.com. These include premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, and news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies. The digital content also includes 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 ZVUE through HandHeld Entertainment’s relationships with eMusic and Rhapsody (see http://www.zvue.com/html/music.php).

About HandHeld Entertainment, Inc.

HandHeld Entertainment is a digital-media-to-go company. Its network of Web sites (Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com and ZVUE.com) attracted more than 13.7 million visitors in January 2007 to view both user-generated and premium content. Its ZVUE™ personal media players are mass-market priced and available for purchase online and in approximately 2,200 Wal-Mart stores throughout the United States. HandHeld Entertainment’s common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), respectively. For more information, visit www.hheld.com/ir or call 415-495-6470.

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