Hand Held Products(TM) Strengthens Position With 14 Percent Growth in First Half of 2005; Innovative Products and Customer Rollouts Key Factors in Company Success.

SKANEATELES FALLS, N.Y. -- Hand Held Products, Inc., a leader in image-based data collection systems for mobile, in-premise and transaction processing applications, grew 14 percent in the first half of 2005 compared to the same period in 2004. This was a direct result of significant demand for its 2D imaging-based data collection systems and the continued demand for its Dolphin Series of Mobile Computers.

The global market for hand held bar code scanners is projected to reach almost $974 million by the end of 2008 according to "The 2004 Global AIDC Industry Business Planning Service" published by Venture Development Corporation (VDC). The research also indicates that while shipments of traditional laser-based bar code technology is expected to increase just 6.5 percent, demand for linear and 2D imaging solutions are expected to grow at rates of 11 and 20.8 percent respectively.

"The first half of 2005 has delivered very positive results for the company, building upon the 40 percent growth we achieved in 2004," said Kevin Jost, CEO, Hand Held Products. "The company's commitment to our customers ROI, our customer centric selling strategy and our continued focus on product innovation have been instrumental to the growth. Our goals and expectations are even greater for the second half of the year," he continued.

To date, some of the key product rollouts for 2005 include:

--IT5000 Series miniature image engine for OEM's

--TT8500 interactive POS / signature capture transaction terminal

--IT5620/4620 cordless linear and 2D imagers

"The most recent IT5000 engine launch further solidifies our commitment to imaging innovation," said Mike Ehrhart, CTO, Hand Held Products. "To meet the increasing demands for 2D imaging, we will continue our technical innovation with the rollout of the IT5000 MegaPixel engine in the fourth quarter of 2005."

In addition to product rollouts, Hand Held Products has expanded its European offices to support sales and employment growth. The company also extended its geographic footprint with the opening of its second Greater China office in Shanghai and marked its entrance into Latin America with the opening of an office in Brazil. Worldwide employment at Hand Held Products now stands at 850 associates, a 60 percent increase since 2002.

About Hand Held Products

With headquarters in Central New York, Hand Held Products is a worldwide leading manufacturer of image based data collection systems for mobile, wireless, and transaction processing solutions. Through its proprietary Adaptus(TM) Imaging Technology platform, Hand Held Products is dedicated to delivering innovative imaging solutions, reliability and durability to its customers and partners through more than 30 sales offices and hundreds of resellers. Hand Held Products is a privately held company and is represented in every major market and geographic region of the world. To find out how Hand Held Products can help you at the point-of-sale, on the sales floor, in the warehouse or on the delivery truck, call us at 1-800-582-4263. Or visit us at handheld.com.

This material contains forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially from those projected in this publication. While Hand Held Products believes its statements to be reliable, all information/projections/statements/opinions expressed herein are based on information available as of the date of publication and are subject to change without notice.