FOR IMMEDIATE RELEASE

FreeHand Systems signs multi-year Asian distribution agreement with Acton International Corporation, LTD.

Acton, a wholly owned subsidiary of Tom Lee, Ltd. offers FreeHand expansion into the fastest growing and potentially largest musician market in the world.

LOS ALTOS, Calif. – July 25, 2005 –FreeHand Systems, Inc. (“FreeHand”) the elite digital music company whose revolutionary technology is shaping the future of the distribution and performance of sheet music announced, today, that it has reached a $35 million agreement with Acton International Corporation, LTD (“Acton”), a wholly owned subsidiary of Tom Lee, Ltd., the largest musical instrument distributor and retailer in Asia, to distribute FreeHand’s digital MusicPad Pro“. FreeHand is the world leader in digital sheet music publishing and the developer, manufacturer and marketer of the world’s first digital music tablet, the MusicPad Pro® Plus.

The agreement with Acton allows FreeHand to introduce its products in China, Hong Kong, Singapore, Taiwan, Japan, Korea, Indonesia, Malaysia, Viet Nam, Thailand, Philippines and India, thus enabling penetration in this over $4 billion music products market. Tom Lee, Acton’s parent company, is an established second-generation music company with 22 retail stores in Hong Kong and distribution strength in the entire Asian market. John Lee, CEO, has extensive personal experience with successful new product introduction in these markets.

“This is an extraordinary opportunity for FreeHand to exceed its sales goals for this and following years by expanding into 12 Asian countries with a major established music distributor as a partner”, said Kim Lorz, FreeHand’s CEO.

John Lee, CEO of Tom Lee Ltd. Said, "We are convinced that the MusicPad Pro will be widely accepted throughout Asia and is the future of sheet music. Our company is committed to an aggressive distribution plan to reach musicians across all musical genres, educators, students and symphony orchestras. The new MusicPad Pro model for Asia along with the MusicPad Maestro, allow us to integrate digital sheet music technology into everything we sell."

FreeHand is now revolutionizing the sheet music performance market and has a unique opportunity to be successful because of the market potential, the company’s advanced technology, and its highly motivated and experienced management team. It provides both a new method of distribution and a new method of performance, bundling both in a powerful 4 lb tablet and a robust, easy-to-use website to buy and play music. Mr. Lorz added, “ We see the future as sheet music maintained by digital masters and downloaded globally as opposed to being printed on paper. Six to eight week delivery times will be eliminated with music on demand and very little paper will be involved in education or professional performances.”

FreeHand Systems is a privately held Silicon Valley company offering digital sheet music solutions. Its lead product, the MusicPad Pro Plus fits neatly on a music stand, solving the age-old problem of turning music pages by letting musicians simply touch the screen. The MusicPad Pro Plus creates a paperless environment by providing storage capacity for an entire music library of more than 5,000 pages of sheet music. Plus, with FreeHand’s digital music store, www.sunhawk.com, musicians everywhere can download over 45,000 scores already formatted for easy transfer to their MusicPad Pro

Investor Relations: 480.609.0468
Heather Owens
480 609-0468
www.otcinfo.net

Media Contact:
Clyde Beswick, VP Marketing
FreeHand Systems, Inc.
310.275.9269
cbeswick@freehandsystems.com

Note to editors: For additional information visit FreeHand System’s website, www.freehandsystems.com. FreeHand Systems, Inc., MusicPad Pro®, MusicPad Pro® Plus, MusicPad Maestro™ are trademarks of FreeHand Systems, Inc.

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This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FreeHand Systems International, Inc. to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in FreeHand Systems International, Inc.'s Annual Report and any subsequent reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and FreeHand System International, Inc. assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.