In July, San Francisco based Hand Held Entertainment (www.hheld.com) announced the
ZVUE!, a sub $100 portable video and MP3 player. Industry analysts and seasoned tech journalists were skeptical that a small start-up company could live up to their mid-summer PR hype.

An article in Gizmodo stated: Unfortunately, it looks like they're using their own proprietary video codec called HHE, which means the ZVUE! won't play MPEGs or DivX files, and that the only videos you'll be able to watch on it are probably ones you'll have to buy from them.
http://www.gizmodo.com/archives/007531.php

A report on CNET.com declared: If that's true, the device will turn the portable-entertainment industry on its ear.
http://reviews.cnet.com/Music/4520-6450_7-5021424-1.html

On Thursday August 28, I became the first journalist to hold a battery powered (4 AA) fully functional, pre-production rubber mold ZVUE! prototype in my hand and watch videos on the 2.5” TFT color screen. Photos, audio interviews (wav, wma), product info and an interactive discussion regarding the technology and the pre-Christmas launch are available through the New Digital Reporter.

ZVUE: $99 Handheld Video Player On Track For Fall Release