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HandHeld Entertainment Acquires Dorks.com, a Fast-Growing Web Site Full of Hilarious Videos

November 14, 2006

Dorks.com purchase puts HandHeld Entertainment in the middle of the user-generated content category




FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 14, 2006 -- SAN FRANCISCO and SEATTLE – Nov. 14, 2006 – HandHeld EntertainmentÔ (NASDAQ: ZVUE, ZVUEW) today announced the acquisition of Dorks.com for $1.5 million ($500,000 in cash and a five year $1 million note convertible to common stock).

A rapidly growing, leading aggregator of user-generated content, Dorks.com attracts as many as 1 million unique visitors each month.

“With our purchase of Dorks.com, HandHeld Entertainment is jumping into one of the fastest-growing segments in the entertainment world,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “In less than 12 months, Dorks.com has become one of the leading destinations on the Web for the hilarious videos loved by viewers of all ages. This acquisition also adds considerable strength to our overall online offering, which can be viewed on PCs as well as portable video players (PVPs). Our ZVUE™ users, as well as users of other PVPs, will especially enjoy sharing Dorks.com videos with their friends on their ZVUEs or other PVPs.”

Launched in November 2005, Dorks.com generates more than 110,000 unique page views each day and attracted more than 850,000 unique visitors in October, with a high of 1 million unique visitors in May 2006. Individuals from all over the world have submitted videos to Dorks.com via the submit page at http://www.dorks.com/templates/view.php?go=submit in an attempt to win a monthly cash prize for the top video of the month.

“I started Dorks.com because I couldn’t find what I was looking for on the ‘Net – crazy, fun, videos that made me laugh, without all the violence of other sites” said John Kowal, King Dork of Dorks.com. “And apparently I wasn’t alone in that desire. Becoming a part of HandHeld Entertainment makes sense for Dorks.com and any Webmaster. It opens a whole new segment of portable video players to our audiences as well as allows us, as single Webmasters, the resources that HandHeld Entertainment can provide, including access to a huge library of commercial titles, an incredible management team, an amazingly talented staff, and even a water cooler which is more than I have now.”

“Sometimes you want to be able to use your PVP to share great humor with your friends. Now, you can pull out your PVP and say to your friends, ‘Hey, watch this,’ as you show them ‘Special Mothers Day’ or the latest SONY/BMG music video,” Oscodar said.

About the ZVUE

Available today in more than 1,800 Wal-Mart stores throughout the United States, as well as online at such locations as Amazon.com, the $99 (US) ZVUE plays videos and MP3 files available from the ZVUE.com download store and also allows users to view digital pictures from a digital camera or home video from a camcorder. The ZVUE offers full-color video and clear audio sound that gives users a robust, on-the-go digital experience when coupled with downloadable content from the ZVUE Web site.


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Contact Information

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