San Francisco, CA -- (ReleaseWire) -- 01/05/2007 -- HandHeld Entertainment surpasses traffic goals announced during November 14, 2006 investor conference call; company also announces that it is on track to achieve other goals stated in the call

"We said we would attract three to five million visitors to our Web sites by the end of 2007 and we accomplished that goal by the end of 2006," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW). "In December, our network of Web sites was viewed by more than 5.5 million unique visitors. We established that goal for the company during our November 14 investor call, but with our mid-December acquisition of YourDailyMedia.com we have already hit that milestone a full year ahead of schedule."

HandHeld Entertainment announced on December 18 that it had acquired YourDailyMedia.com™ for $1.06 million ($200,000 in cash payable in January 2007, $60,000 in cash payable during the next 12 months and a five-year $800,000 note which can be converted into 186,306 shares of HandHeld Entertainment's common stock).

"During a five-week period from November through the middle of December, HandHeld Entertainment acquired three leading Web site properties focused on delivering funny and humorous videos and other forms of media," Oscodar said. "In combination, these three sites – YourDailyMedia.com, Dorks.com™ and FunMansion.com™, along with the Free STUFF! section of ZVUE.com™ and ZVUE.com – attracted more than 5.5 million unique visitors in December. We now have a solid foundation in the comedy space, a foundation that makes HandHeld Entertainment's online comedy network one of the largest in the world in terms of unique visitors and page views.

"We have more than 11,000 downloadable videos available on our network of Web sites, including more than 6,000 free user-generated videos and nearly 5,000 additional premium videos available on ZVUE.com. That, plus more than 7,000 additional premium video selections under contract, gives us a significant online library of downloadable and streaming videos available for free or for sale. These videos are not limited to PC viewing; they can also be downloaded and viewed on many portable devices, such as our own ZVUE™ personal media players, as well as on portable media players supporting (with Windows Media Player 10) or a portable device running Windows Mobile 5.0."

According to HandHeld Entertainment, the company has also achieved several other objectives outlined in its November 14 investor call, including

· Creation of a HandHeld Entertainment network of Web sites focused on humorous user-generated videos (two of which are already generating advertising revenue, with the third Web site slated to begin doing so shortly);
· Delivery of ZVUE MP3 players to selected Wal-Mart and InMotion Entertainment stores throughout the United States preloaded with 30 of the top songs of 2006;
· Initial deliveries of ZVUE 250 personal media players to selected Wal-Mart stores throughout the U.S.; and
· A headcount reduction to 30 full-time equivalents (FTEs) down from 55 FTEs, excluding personnel assumed through acquisitions.

"We're pleased with our progress and we're looking forward to continuing to execute on our plan," Oscodar said.

About the ZVUE
HandHeld Entertainment's ZVUE line of portable media players is available today in approximately 2,000 Wal-Mart stores throughout the United States. The SRP $99 (US) ZVUE plays videos and MP3 files and also allows users to view digital pictures from a digital camera or home video from a camcorder. HandHeld Entertainment also recently began shipping the ZVUE MP3 player, an MP3 player pre-loaded with 30 of the top songs of 2006.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Users of Web-enabled devices running Windows Media Player 10 Mobile can now download and watch videos from ZVUE.com or ZVUE.com/mobile

San Francisco, CA -- (ReleaseWire) -- 01/04/2007 -- HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced it launched ZVUE.com/mobile™. – a micro Web site the company promised it would launch by the end of 2006. The launch of ZVUE.com/mobile makes it possible for millions of smartphone users and PocketPC users to easily download and watch videos on those devices.

The ZVUE.com/mobile site contains 25 free user-generated videos that are available for downloading and playback onto a Windows Mobile 5.0 and Windows 2003 device over a carrier network. In addition, anyone with a Web-enabled smartphone or PocketPC running Windows Media Player 10 Mobile can now log onto ZVUE.com/mobile from their device and download/watch one of the thousands of videos they've already saved or purchased from ZVUE.com™.

"We said we'd launch a Windows Mobile 5.0 micro site by the end of the year and we did it," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "The ZVUE.com/mobile site makes it possible for any registered user of ZVUE.com to buy a video on a PC and then download and watch that video on a Web-enabled smartphone or PocketPC. As a result, we now have thousands of premium videos available for millions of cell phone users.

"Additionally, we've made 25 of our top user-generated videos immediately available for free download and playback on these same Web-enabled portable devices. This list of free user-generated videos available for smartphones and PocketPCs will grow weekly as we add more free videos to ZVUE.com/mobile. Viewing great user-generated videos on-the-go on mobile devices is something that we believe our users want. The generation that has made user-generated videos a huge phenomenon is also an extremely mobile generation, and we think this combination will be very compelling."

Current Windows Mobile 5.0 devices with Windows Media Player 10 Mobile are available in the United States from such mobile operators as Cingular, Sprint, T-Mobile and Verizon, as well as from manufacturers such as Dell, Hewlett Packard, Palm, and Samsung. (For additional information about Windows Mobile 5.0, including manufacturers and mobile operators supporting the operating system, please visit www.windowsmobile.com).

HandHeld Entertainment now has nearly 12,000 videos available to its users through its network of Web sites. These include premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies, as well as free user-generated and user-submitted video selections and other forms of media.

Since premium videos found on ZVUE.com/mobile and ZVUE.com are available as Windows Media Video (WMV) files, a one-time license agreement is all that is required to play such videos on a Windows Mobile powered device with Windows Media Player 10 Mobile. Once stored on a WMP10-compatible device, these videos can be viewed again and again.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with its ZVUE family of mass-market portable media players priced at mass-market prices. In addition, the company owns a network of Web sites containing premium video selections and free downloadable media selections, including ZVUE.com, the Free STUFF! section of ZVUE.com, as well as YourDailyMedia.com, Dorks.com and FunMansion.com, wholly owned subsidiaries of HandHeld Entertainment. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW). For more information, visit www.hheld.com/ir or call 415-495-6470.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Built-in rechargeable lithium-ion battery and thinner/lighter design highlight new features in the next generation ZVUE that is supported with more than 5,000 premium videos available on ZVUE.com

San Francisco, CA -- (ReleaseWire) -- 12/20/2006 -- The ZVUE™ 250, the next generation value-priced personal media player (PMP) from HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW), is now shipping and is available for purchase online at Amazon.com and Wal-Mart.com and in selected Wal-Mart stores throughout the United States.

With a manufacturer's suggested retail price of $99.95, the entry-level ZVUE 250 PMP features a 2.5-inch active matrix backlit screen and supports videos running at up to 30 frames per second (fps). The ZVUE 250 also features a secure digital (SD) slot (and ships with a 128MB "starter" SD card), a rechargeable lithium-ion battery and is compatible with Windows Media Player 10 with Microsoft's secure Digital Rights Management (DRM) and supports both Windows Media Video (WMV) and Windows Media Audio (WMA) formats with DRM for music and video download services. In fact, the ZVUE 250 is the only PMP priced at under $200 that supports WMV with DRM.

"The ZVUE 250 is our next step in creating a family of value-priced personal media players that everyone can easily afford and enjoy right out of the box," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Many companies are making overpriced and overly complicated PMPs. We believe that consumers will love the fact that they can easily enjoy our durable and affordable ZVUE 250 by using our ZAPP™ Media Manager software to easily download videos from ZVUE.com™ or our new sites for hilarious user-generated content: Dorks.com™, FunMansion.com™ and YourDailyMedia.com™."

Additional ZVUE 250 Specifications

The ZVUE 250 utilizes a more compact and sleek design than the previous ZVUE model. Additional specifications include:

· Up to six hours of battery life on a single full charge,
· An AC adapter to charge the device,
· Two earphone jacks to allow sharing with a friend,
· A USB port for easy uploading of digital content,
· A 90-day limited Manufacturer Warranty,
· Audio support for the following file formats for audio playback: MP3, WMV, WMA (with DRM), OGG and MP2,
· Picture support for the following file formats for image playback: JPG, BMP,
· Video support for the following file formats for video playback: AVI, ASF, Xvid, MPEG4, WMV (with DRM),
· Measurements: 4.33- x 2.91- inches x 0.8-inches, and
· Weight: Approximately 5.2 ounces.

"This holiday shopping season, a lot of families will have children asking for a PMP of their own," Oscodar said. "There's no reason for families to spend hundreds of dollars for just one PMP when they can purchase the ZVUE 250 for around $100. We are committed to making our products affordable, available from retailers like Wal-Mart and Amazon.com, and thanks to our 'open solution' approach to portable digital video with ZVUE.com, ZVUE 250 owners have access to a lot of the Web's best legal content as well."

The first two independent reviews of the ZVUE 250 agree with Oscodar's assessment of the value delivered by the ZVUE 250.

For example, Joe Nuvolini at ComputorEdge Online rates the ZVUE 250 at four out of five worlds and in his 12/15/06 review describes the ZVUE 250 as
· "a great gift for Christmas,"
· "not complicated to use,"
· "Overall, it is a great unit," and adds
· "if you have been looking for a unit that is simple to use, you'll love it."
(The complete ZVUE 250 review can be found online at http://webserver.computoredge.com/editorial/prg/online.mv?zone=NA.)

By comparison, Sari Kent at TheCelebrityCafe.com describes the ZVUE 250 as a "video player, with a nice interface, great screen and a few other features." Kent further writes in his 12/19/06 review, "If you are in the market for an MP3 player that does more than just play music then the Zvue 250 is just what you need!" (The complete ZVUE 250 review can be found online at http://thecelebritycafe.com/guide/1355.html.)

HandHeld Entertainment has more than 5,000 videos available for purchase on ZVUE.com today out of more than 11,000 video selections it has under contract, as well as thousands of free user-generated and user-submitted videos on HandHeld's network of Web sites. These selections include premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's premium video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated videos and other media from the Free STUFF! section of ZVUE.com, as well as from Dorks.com, FunMansion.com and YourDailyMedia.com, wholly owned subsidiaries of HandHeld Entertainment. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW). For more information, visit www.hheld.com/ir or call 415-495-6470.

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

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors including the ability of the company to successfully commercialize its new technologies as well as risk factors set forth from time to time in HandHeld Entertainment's filings with the United States Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K and other reports filed by the company with the SEC. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.
MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730(wk), 801-660-7820(cell), jbacon@politis.com

INVESTOR CONTACT FOR HANDHELD ENTERTAINMENT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

HandHeld Entertainment’s growing comedy/humor network of user-generated and user-submitted Web sites – YourDailyMedia.com, Dorks.com, FunMansion.com and Free STUFF! – generates one of the largest online audiences in the funny bone marketplace

San Francisco, CA -- (ReleaseWire) -- 12/19/2006 -- HandHeld Entertainmentae (NASDAQ: ZVUE, ZVUEW) today announced it has acquired YourDailyMedia.com™ for $1.06 million ($200,000 in cash payable in January 2007, $60,000 in cash payable during the next 12 months and a five-year $800,000 note which can be converted into 186,306 shares of HandHeld Entertainment's common stock).

Launched in June 2005, YourDailyMedia.com contains a growing library of more than 4,500 "edgy" user-generated and user-submitted videos and thousands of other media selections, including photos, games, jokes and more. YourDailyMedia.com attracts more than 1.8 million unique visitors per month and generated more than 5.8 million page views in November.

In the past 35 days, HandHeld Entertainment has acquired three leading Web site properties focused on delivering funny and humorous videos and other forms of media to customers for free. In combination, these three sites – YourDailyMedia.com, Dorks.com™ and FunMansion.com™, along with the Free STUFF! section of ZVUE.com™ – are expected to attract more than 5 million unique visitors in December.

"The acquisition of YourDailyMedia.com is a great addition to our growing online network of comedy/humorous Web sites that contain lots of user-generated and user-submitted videos and other media," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "We now have a solid foundation in the comedy space, a foundation that makes HandHeld Entertainment's online comedy network one of the largest in the world in terms of unique visitors and page views. But we do not intend to rest on our laurels.

"We have already begun executing our plans to maximize these assets through improved and accelerated advertising and marketing efforts, cross-promotional opportunities and building one of the best networks for online comedy in the world. We will continue to look for opportunities to maximize shareholder and customer value through our complete personal media solutions, whether that's for owners of our ZVUE™ personal media players, owners of other brands of PMPs or cell phones, or for users of our premium media Web site, ZVUE.com, or any of our free Web sites, such as YourDailyMedia.com."

Representative of the edgy user-generated and user-submitted videos posted recently on YourDailyMedia.com are the following:
· Skater on Fire at Skater on Fire,
· The Best Trick Shot at The Best Trick Shot,
· No Smoking in the Bog at No Smoking in the Bog, and
· Lamborghini Murcielago vs Lamp Post at Lamborghini Murcielago vs Lamp Post.

"As I came to understand HandHeld Entertainment's vision, I thought it was absolutely brilliant, and I knew YourDailyMedia.com should be a key component that vision," said Scott Worsnop, founder of YourDailyMedia.com. "My initial goal was to build a site that people everywhere would think of as their daily media fix for fun and edgy videos and other stuff. By becoming part of HandHeld's online comedy network, I'm confident that we will be able to grow our reach and penetration to comedy lovers everywhere."

With the acquisition of YourDailyMedia.com, HandHeld Entertainment now has nearly 11,000 videos available to its users through its network of Web sites. These include premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies, as well as free user-generated and user-submitted video selections and other forms of media.

In addition, HandHeld Entertainment announced last week the launch of ZAPP™ media manager, a software product used for managing digital videos, music and photos on personal computers, ZVUE personal media players, other PMP brand players, as well as on cell phones and portable digital assistants (PDAs) that support Windows Mobile 5.0. ZAPP is available for free at www.zvue.com/players/zapp.php.

About the ZVUE
Available today in approximately 2,000 Wal-Mart stores throughout the United States, as well as online at such locations as Amazon.com, the SRP $99 (US) ZVUE plays videos and MP3 files 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 HandHeld Entertainment's family of Web sites.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's premium video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated videos and other media from the Free STUFF! section of ZVUE.com, as well as from YourDailyMedia.com, Dorks.com and FunMansion.com, wholly owned subsidiaries of HandHeld Entertainment. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW). For more information, visit www.hheld.com/ir or call 415-495-6470.

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

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors including the ability of the company to successfully commercialize its new technologies as well as risk factors set forth from time to time in HandHeld Entertainment's filings with the United States Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K and other reports filed by the company with the SEC. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.

MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730(wk), 801-660-7820(cell), jbacon@politis.com

INVESTOR CONTACT FOR HANDHELD ENTERTAINMENT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Just in time for the holidays, the ZVUE MP3 Player comes pre-loaded with 30 of the top 100 songs of 2006

San Francisco, CA -- (ReleaseWire) -- 12/06/2006 -- HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced its ZVUE™ MP3 Player – the company's first MP3 player – will be in selected Wal-Mart stores and selected InMotion Entertainment stores throughout the United States starting Tuesday, December 5.

At a suggested retail price of $69.95, the ZVUE MP3 player is an MP3 player with a bonus as it comes pre-loaded with 30 of the top hits of 2006, including two No. 1 singles from Beyonce: "deja vu" and "Check on it," as well as eight other Top 10 songs (as tracked by Billboard magazine in its various Billboard charts). Other recording artists included on the ZVUE MP3 Player range from Nick Lachey to Jessica Simpson and from the Dixie Chicks to Five for Fighting. (A complete list is found below.)

"As promised, the ZVUE MP3 Player is going to be on retail shelves throughout the U.S. in time for the holidays," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "And since it comes pre-loaded with 30 of the top hits of 2006, the ZVUE MP3 makes a great gift choice. And in addition to the player and the songs, ZVUE MP3 Player owners will also be able to purchase and download the corresponding music videos for each song from our download store at ZVUE.com™.

"The ZVUE MP3 validates the strategy that we discussed during our investor conference call last month. We are going to continue to produce high-value hardware coupled with great content from ZVUE.com that will drive customers to our digital download site. Great products, combined with content, create great value."

The 30 hit songs that come pre-loaded on the ZVUE MP3 Player, and the corresponding recording artist(s), are
Anna Nalick "Breathe (2 a.m.)"
Audioslave "Original Fire"
Beyonce "deja vu"
Beyonce "Check On It"
Bow Wow "Fresh AZIMIZ"
Cartel "Honestly"
Cheyenne Kimball "Hanging On"
Christina Aguilera "Aint No Other Man"
Dixie Chicks "Not Ready To Make Nice"
Five For Fighting "The Riddle"
Heather Headley "In My Mind"
Howie Day Collide
Jessica Simpson "A Public Affair"
John Legend "Ordinary People"
John Mayer "Waiting on the World to Change"
Los Lonely Boys "Diamonds"
Luther Vandross "Shine"
Matisyahu "King Without A Crown
Natasha Bedingfield "Unwritten"
Nick Lachey "What's Left of Me"
Omarion "Entourage"
Outkast "Morris Brown"
Shakira "Hips Won't Lie"
Shakira "La Tortura"
Teddy Geider "For You I Will"
The Afters "The Beautiful"
The Fray "How to Save a Life"
The Fray "Over My Head"
Three 6 Mafia "Stay Fly"
T-Pain "I'm N Luv (with a Stripper)"

ZVUE MP3 Player Specifications

The thumbdrive-sized ZVUE MP3 Player features 512 Megabytes of built-in Flash memory capable of holding approximately eight hours of recordings in MP3 format (roughly 125 songs) or approximately 16 hours of recordings in Windows Media Audio (WMA) format (roughly 250 songs). The ZVUE MP3 Player also supports WAV files. Users can add new recordings to the ZVUE MP3 Player through its direct USB port, as well as use the ZVUE MP3 Player as a voice recorder. The ZVUE MP3 Player operates for approximately eight hours on a single AAA battery.

Each product package contains the pre-loaded ZVUE MP3 Player, a Quick Start Guide, ear buds, a USB cable for transferring music and a single AAA battery.

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

MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730(wk), 801-660-7820(cell), jbacon@politis.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

FunMansion.com adds approximately 1.5 million monthly unique visitors/potential customers to HandHeld Entertainment’s growing network of Web sites

San Francisco, CA and Port St. Lucie, FL-- (ReleaseWire) -- 12/01/2006 -- HandHeld Entertainmentae (NASDAQ: ZVUE, ZVUEW) today announced it has acquired FunMansion.com™ for $1.1 million ($350,000 in cash at closing, $150,000 in cash payable over 12 months and a five-year $600,000 note convertible into common stock).

FunMansion.com has averaged approximately 1.5 million unique visitors per month and more than 3.5 million page views per month during the past two months.

"In a little more than two weeks, we have begun assembling a significant collection of user-generated video content by acquiring Dorks.com™ and FunMansion.com," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "The FunMansion.com acquisition takes us to potentially 2.5 million unique visitors per month, with a combined total of more than 5.4 million page views per month, all tied to the comedy/extreme marketplace. We believe that these funny user-generated and user-submitted videos, photos, jokes and more tend to attract demographics that will be attractive to advertisers and sponsors. We also believe that the combination of ZVUE.com's commercial content, coupled with our rapidly growing library of user generated content from Dorks.com, FunMansion.com and ZVUE.com's own FREE Stuff! site, will be a powerful combination for our company."

HandHeld Entertainment's user-generated Web properties – Dorks.com, FunMansion.com and FREE Stuff! – now attract nearly 2.5 million unique visitors each month, particularly in the comedy/extreme space. In addition, HandHeld Entertainment announced earlier in November a content agreement with Comedy Time Network to make hundreds of hours of stand-up comedy routines and sketches available for purchase at ZVUE.com. Taken in combination, these two acquisitions and the Comedy Time agreement have helped transform HandHeld Entertainment into a leading provider of comedic/humorous videos for both portable video players and PCs.

Representative of the humorous user-generated and user-submitted videos posted recently on FunMansion.com are the following:
· Nutty Paintball Prank at http://funmansion.com/html/Nutty-Paintball-Prank.html;
· Finger Scratching DJ at http://funmansion.com/html/Finger-Scratching-DJ.html;
· Idiots Playing with Fire at http://funmansion.com/html/Idiots-Playing-With-Fire.html; and
· Female Reporter Loses Her Cool at http://funmansion.com/html/Female-Reporter-Loses-Her-Cool.html.

"FunMansion.com has been around for more than five years, and we've seen a strong increase in visitors and page views during the past 18 months," said Mary Dunne, founder and owner of FunMansion.com. "I'm really excited to be joining the ZVUE.com network of Web sites. Now I can continue to build the site that I love and can do so with greater resources and scale. Those resources should accelerate FunMansion's growth and bring FunMansion's user-generated videos to a larger audience."

HandHeld Entertainment also has more than 4,400 videos available for purchase on ZVUE.com today out of more than 11,000 video selections it has under contract. These selections include music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

Launched in February 2001, FunMansion.com hosts free user-generated videos, photo slideshows and Flash-based games and movies.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Anyone with a Windows Mobile powered device, running Windows Media Player 10 Mobile, can now use ZVUE.com

San Francisco, CA -- (ReleaseWire) -- 11/17/2006 -- HandHeld Entertainmentae (NASDAQ: ZVUE, ZVUEW) today announced ZVUE.com™ support for all devices running the Microsoft Windows Mobile 5.0 operating system.

The company also announced that it will launch a "micro site" optimized for these mobile devices by the end of this year.

Users of such devices with wireless Internet connectivity that run the Windows Mobile operating system with Windows Media Player 10 Mobile, can use their mobile devices to log onto ZVUE.com to purchase, download and play music videos and other forms of portable video content right on their devices. The "micro site" that HandHeld Entertainment will launch by the end of this year will make this download process even easier.

Millions of consumers with smartphones running Windows Mobile 2003 with Windows Media Player 10 Mobile can also use ZVUE.com to snag music videos, movies, TV shows, comedic short films and play them on such smartphones and PDAs as well.

Users of Windows Mobile powered devices can also purchase and download videos from ZVUE.com onto a personal computer running the Windows operating system and then load such videos onto their portable device via a USB or mini-USB port connection or by saving the videos onto an SD/MMC and/or miniSD card and loading the card into their device.

"Our strategy has always been to support all forms of digital media for use 'on the go,'" said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Nothing is more 'on the go' than cell phones, PDAs and other similar devices, and we are therefore thrilled to now provide users of these devices with a great place for downloading great content – ZVUE.com. Supporting Windows Mobile 5.0 is another example of how our open content strategy allows us to leverage not just the growth our ZVUE™ products, but the growth of many other devices in the mobile entertainment market."

Current Windows Mobile 5.0 devices with Windows Media Player 10 Mobile are available in the United States from such mobile operators as Cingular, Sprint, T-Mobile and Verizon, as well as from manufacturers such as Dell, Hewlett Packard, Palm, and Samsung. (For additional information about Windows Mobile 5.0, including manufacturers and mobile operators supporting the operating system, please visit www.windowsmobile.com).

HandHeld Entertainment has more than 4,400 videos available for purchase on ZVUE.com today out of more than 11,000 video selections it has under contract. These selections include music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

Since videos found on ZVUE.com are available as Windows Media Video (WMV) files, a one-time license agreement is all that is required to play such videos on a Windows Mobile powered device with Windows Media Player 10 Mobile. Once stored on a WMP10-compatible device, these videos can be viewed again and again.

About HandHeld Entertainment, Inc.
With shares and warrants available for purchase on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated video selections from Dorks.com, a HandHeld Entertainment company. For more information, visit www.hheld.com/ir or call 415-495-6470.

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

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

HandHeld Entertainment execs project cash flow positive results in 2007 without the need to raise additional capital

San Francisco, CA -- (ReleaseWire) -- 11/16/2006 -- Executives of HandHeld EntertainmentO (NASDAQ: ZVUE, ZVUEW) yesterday disclosed that the company expects to achieve cash flow positive results in 2007 based upon recent steps taken by the pioneer of the portable video player (PVP) industry.

The disclosures were made during HandHeld Entertainment's first ever investor conference call, held yesterday afternoon, which is available for telephonic replay or viewing via the Internet – details are below.

The key points made by HandHeld Entertainment executives during yesterday's call include the following:

1) Accelerate Content Growth

2) Focus the Hardware Business on Near-term Profitability

3) Implement an Operating Plan that is 12 Months to Cash Flow Positive

"With the steps we have taken and that we outlined yesterday afternoon, we plan to achieve cash flow positive results in 2007 without raising additional capital," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "We are already cash-flowing our player business and our ZVUE business. We will soon begin cash-flowing our free video businesses with Dorks.com and FREE Stuff!. Wal-Mart will soon have the ZVUE 250 and ZVUE ZP3 players on its shelves. The ZVUE 250 will also be on retail shelves, including Wal-Mart, shortly. We will outsource all future PVP development efforts to leading OEMs worldwide, and we have right-sized and reallocated our personnel ranks to help us responsibly meet our objectives of increased market penetration and breakeven results in 2007."

For further highlights of yesterday's conference call held by HandHeld Entertainment, interested individuals are invited to listen to a replay by calling 877-660-6853 (in the United States) or 201-612-7415 (for international callers). The following pass codes (both of which are required for playback) are as follows: account #: 286 and conference ID #: 215796.

The conference call and attendant slide presentation can also be viewed online by visiting www.hheld.com/ir.

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.

About HandHeld Entertainment, Inc.
With shares and units of its common stock available for purchase on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated video selections from Dorks.com, a HandHeld Entertainment company. For more information, visit www.hheld.com or call 415-495-6470.

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

MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730(wk), 801-660-7820(cell), jbacon@politis.com

INVESTOR CONTACT FOR HANDHELD ENTERTAINMENT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Lead underwriter releases market standoff restriction on shares issued in HandHeld Entertainment’s February 2006 PIPE transaction

San Francisco, CA -- (ReleaseWire) -- 11/16/2006 -- HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced that the company and Newbridge Securities Inc., the lead underwriter in HandHeld Entertainment's August 2006 secondary offering, have released the market standoff provision which allows the common shares issued in HandHeld Entertainment's PIPE financing transaction completed in February 2006 to trade prior to the 180-day restriction imposed under the registration rights agreement previously entered with the PIPE investors.

PIPE investors desiring to sell under the effective registration statement must deliver a current prospectus which is available for download as Form 424B3 filed on August 30, 2006 (File No. 333-133215) from the SEC's Web site (www.sec.gov). The release of this provision will allow the 3,238,558 shares registered under the prospectus to become free trading and increases the public float of the company's common stock to approximately 6.3 million shares.

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.

About HandHeld Entertainment, Inc.
With shares and warrants traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable video players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video content store at www.zvue.com to buy pay-per-download videos. Customers can also download free user-generated video selections by visiting Dorks.com, a HandHeld Entertainment company. For more information, visit www.hheld.com/ir or call 415-495-6470.

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

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements. To the extent that any statements made in this release contain information that is not historical, these statements are forward-looking. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation: HandHeld Entertainment's dependence on contract manufacturing of its products; its reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely manner new products and services; its ability to predict market demand for, and gain market acceptance of, its products and services; the impact of competitive products and services and of alternative technological advances; its ability to raise additional capital to finance its activities; its limited and unprofitable operating history; its ability to operate as a public company; its ability to reduce product return rates; the affect of inventory and price protections required by major retailers; the availability and affordability of digital media content; its ability to protect its proprietary information and to avoid infringement of others' proprietary rights; its ability to attract and retain qualified senior management and research and development personnel; the reliability and security of its information systems and networks; and other factors described in HandHeld Entertainment's filings with the Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. These forward-looking statements are made as of the date hereof. HandHeld Entertainment does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Manufacturers must support Windows Media Video with Digital Rights Management

San Francisco, CA -- (ReleaseWire) -- 09/13/2006 -- With one of the largest libraries of purchasable digital videos on the 'Net, HandHeld Entertainment announces plans to re-brand and re-launch ZVUE.com to better position the online video download store as the "online video source for PVP owners looking to expand their digital video collections"

"All portable video players should have a complete content solution." That's the message coming from HandHeld Entertainment(TM) today as the company invites all manufacturers of portable video players that support Windows Media Video with Digital Rights Management to partner with HandHeld in delivering a growing library of digital videos to PVP owners everywhere.

"Consumers purchasing any PVP, whether made by Archos, Creative, iRiver, Samsung, Sony, Thomson, HandHeld or any other manufacturer, should receive a complete content solution with their device," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "We provide that solution to both to PVP manufacturers and to end-users. This step marks the beginning of the second phase of our business strategy."

In connection with today's invitation, HandHeld Entertainment also announces plans to re-brand and re-launch ZVUE.com to better position the online video download store as "the online video source for all PVP owners looking to expand their digital video collections," and not just our ZVUEs.

Since 2004, HandHeld Entertainment (NASDAQ: ZVUE - News, ZVUEU - News) has been aggregating content aimed at playback on its $99 value-priced ZVUE(TM) portable media player. The company says today that this library is open to all PVPs from all manufacturers and not just its ZVUE products.

"Instead of locking in PVP end-users to our content site and locking out other PVP manufacturers, we're taking an open approach with ZVUE.com," Oscodar said. "With all deference to Apple Computer and its closed iPod/iTunes system, the Internet is all about open standards and making content available to as many people possible wherever they might be with whatever device they choose to use. That's why we are formally inviting any and all PVP owners to come to our site and manufacturers that support the Windows Media Video standard with DRM to work with us to provide their customers with a complete content solution.

Currently, HandHeld Entertainment has more than 10,000 pieces of video content under contract and more than 3,000 video selections live on ZVUE.com today available for immediate purchase and download. As such, HandHeld Entertainment has aggregated one of the largest libraries on the Internet of purchasable videos that can play on multiple portable video players, as well as on personal computers.

"We have already amassed a large video library, and we intend to build it into the online video source for PVP owners looking to expand their digital video collections," Oscodar said. "Along these lines, we will continue to aggregate the most relevant video content for PVPs. More importantly, these videos are already compatible with devices made by Thomson, Sony, Samsung, iRiver, Creative, Archos and many, many other manufacturers. Because of our open approach, owners of these devices can already use our video download store.

"So we invite you to join with us in making your end-users' experiences even easier and more enjoyable. All portable video players should have a complete content solution. Call us. Let's talk."

More info about the soon-to-be-renamed ZVUE.com:

Since the beginning of 2006, HandHeld Entertainment has announced video and music distribution agreements with companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

HandHeld Entertainment now has under contract more than 10,000 music videos, anime movies, cartoons, independent films, documentaries, news, entertainment and sports programs and other forms of video content available for purchase (or in some cases free download) at the soon-to-be-renamed ZVUE.com (www.zvue.com).

Recent partnerships and distribution agreements between these leading creators of video content and HandHeld Entertainment have allowed the company to aggregate one of the largest Internet collections of digital video selections under contract and becoming available for purchase and download, including

* thousands of music videos from SONY BMG MUSIC ENTERTAINMENT;
* nearly 3,500 news and entertainment video selections from Canadian Broadcast Corporation;
* video highlights of FC Barcelona's 2-1 2006 European Cup Win over Arsenal from IMG Media;
* world-famous fashion shows from IMG Media;
* weekly episodes of Gamer.tv, the world's top weekly computer gaming show, also from IMG;
* anime movies from North America's No. 1 producer-distributor of Japanese anime, ADV Films;
* legendary punk rock videos from Music Video Distributors, including film from renowned punk rock artists such as Bad Religion, Dead Kennedys, Iggy and the Stooges (Iggy Pop), and New York Dolls, in addition to comedy films and cult indie films;
* Latin music videos from Sunflower Entertainment featuring popular artists such as Joe Arroyo, Sonora Carruseles, La Sonora Dinamita, and Fruko y Sus Tesos, as well as rising stars such as Bimbo, Hancel, Propheta and Judiny, Aris Martinez, and Pablo Bachata;
* 1,500 full-length films and television shows from Worldvision Cinema that showcase early performances by many of today's Hollywood stars, including performances by Jackie Chan, Robert De Niro, Morgan Freeman, Demi Moore, John Wayne and W.C. Fields, as well as classic films from Alfred Hitchcock;
* comedic movies from Fun Little Movies, a compilation of short comedy films that have received many cinematic awards, including First Prize for Best Comedy at the World's Smallest Film Festival and a finalist's place for Best Short Film at the Cannes Film Festival;
* extreme sports videos from TotalVid, including extreme sporting videos and productions including skateboarding, inline skating, kiteboarding, mountain biking, paintball, skiing, snowboarding, snowmobiling, surfing, wakeboarding, motorsports and windsurfing videos;
* classic TV programs and cartoons from LikeTelevision, including documentaries on the Olympic Games or Pearl Harbor, as well as classics like the "Johnny Carson Show" and Felix the Cat cartoons; and
* independent films from StoryPIPE.com.

Executives at PVP manufacturers interested in learning more about today's invitation from HandHeld Entertainment's to partner with it in providing purchasable digital videos to their PVP owners should contact Jeff Oscodar at jeffo@hheld.com.

About HandHeld Entertainment, Inc.

With shares and units of its common stock available for purchase on the NASDAQ Capital Market (ZVUE, ZVUEU) and Boston Stock Market (HDE, HDEU), HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video content store at www.zvue.com to buy pay-per-download videos or download thousands of free media titles. For more information, visit www.hheld.com or call 415-495-6470.

HandHeld Entertainment and ZVUE are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements. To the extent that any statements made in this release contain information that is not historical, these statements are forward-looking. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation: HandHeld Entertainment's dependence on contract manufacturing of its products; its reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely manner new products and services; its ability to predict market demand for, and gain market acceptance of, its products and services; the impact of competitive products and services and of alternative technological advances; its ability to raise additional capital to finance its activities; its limited and unprofitable operating history; its ability to operate as a public company; its ability to reduce product return rates; the affect of inventory and price protections required by major retailers; the availability and affordability of digital media content; its ability to protect its proprietary information and to avoid infringement of others' proprietary rights; its ability to attract and retain qualified senior management and research and development personnel; the reliability and security of its information systems and networks; and other factors described in HandHeld Entertainment's filings with the Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. These forward-looking statements are made as of the date hereof. HandHeld Entertainment does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

HandHeld Entertainment looks to capitalize on a worldwide population of millions of gamers by making a new episode of the weekly Gamer.tv show available online through the download store ZVUE.com

San Francisco and London UK -- (ReleaseWire) -- 07/28/2006 -- HandHeld Entertainment( (OTC BB: HNDH), the company behind the ZVUE(tm) family of mass-market portable media players and the ZVUE.com download store, and IMG Media, a division of international sports, entertainment and media giant IMG, today announced that they have teamed up to offer Gamer.tv episodes through HandHeld Entertainment's video download store at ZVUE.com.

Gamer.tv, the world's leading weekly magazine format television show dedicated to video games, mixes reviews and previews of the latest games with exclusive news reports to keep viewers up to date with the computer gaming industry. With nearly two million viewers in the United Kingdom alone, London, England-based Gamer.tv has a larger audience than the combined total of all other specialist games publications in the U.K. Meanwhile, a total reach of 220 million homes worldwide ensures that Gamer.tv keeps gamers in North America, Europe and Asia in the know when it comes to video games.

"With a current worldwide population of millions of gamers, we believe there will be substantial interest in making Gamer.tv episodes available in the U.S. to ZVUE users and owners of other portable video players that support Microsoft's Windows Media Video, as well as personal computers running WMV," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Gamer.tv is clearly the worldwide leader in news, reviews and entertaining information for the video games crowd, so we're pleased to be able to continue to expand our content offerings on ZVUE.com with Gamer.tv shows."

Today's Gamer.tv announcement marks the third time in three months that HandHeld Entertainment and IMG Media have disclosed a content distribution agreement between the two firms. The first agreement covered the availability of IMG fashion shows on ZVUE.com, while the second agreement provided ZVUE users and other PVP users with access to highlights of the 2006 Champions League Cup Final which saw FC Barcelona land a thrilling 2-1 victory over Arsenal in the Stade de France in Paris, France.

"We feel that Gamer.tv is a perfect match for HandHeld Entertainment and ZVUE users," said Ben Nicholas, senior vice president, U.K. and New Media Sales of IMG Media. "We like what we have seen in the growing library of fun and compelling video content on ZVUE.com, and we look forward to the prospect of future projects with HandHeld Entertainment."

Videos available at ZVUE.com (or coming soon):

Since the beginning of 2006, HandHeld Entertainment has announced distribution agreements with companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

HandHeld Entertainment now has under contract more than 10,000 music videos, anime movies, cartoons, independent films, documentaries, news, entertainment and sports programs and other forms of video content available for purchase (or in some cases free download) at www.zvue.com.

Recent partnerships and distribution agreements between these leading creators of video content and HandHeld Entertainment have allowed the company to aggregate one of the largest Internet collections of video selections available for purchase and download. Beyond today's announcement, such agreements have included the addition of:

* thousands of music videos from SONY BMG MUSIC ENTERTAINMENT,
* nearly 3,500 news and entertainment video selections from Canadian Broadcast Corporation,
* video highlights of FC Barcelona's 2-1 2006 European Cup Win over Arsenal and world-famous fashion shows from IMG Media,
* anime movies from North America's No. 1 producer-distributor of Japanese anime, ADV Films,
* legendary punk rock videos from Music Video Distributors,
* Latin music videos from Sunflower Entertainment,
* 1,500 full-length films and television shows from Worldvision Cinema,
* comedic movies from Fun Little Movies,
* extreme sports videos from TotalVid,
* independent films from StoryPIPE.com,
* classic TV programs and cartoons from LikeTelevision,
* as well as a music partnership with eMusic.

About the ZVUE
Available today in approximately 1,800 Wal-Mart stores around 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 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.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in approximately 1,800 retail locations across the United States, while portable video lovers can visit (HandHeld Entertainment's video content store at www.zvue.com) to buy pay-per-download videos or download thousands of free media titles. For more information, visit www.hheld.com or call 415-495-6470.

HandHeld Entertainment, ZVUE and ZTV are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements. To the extent that any statements made in this release contain information that is not historical, these statements are forward-looking. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation: HandHeld Entertainment's dependence on contract manufacturing of its products; its reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely manner new products and services; its ability to predict market demand for, and gain market acceptance of, its products and services; the impact of competitive products and services and of alternative technological advances; its ability to raise additional capital to finance its activities; its limited and unprofitable operating history; its ability to operate as a public company; its ability to reduce product return rates; the affect of inventory and price protections required by major retailers; the availability and affordability of digital media content; its ability to protect its proprietary information and to avoid infringement of others' proprietary rights; its ability to attract and retain qualified senior management and research and development personnel; the reliability and security of its information systems and networks; and other factors described in HandHeld Entertainment's filings with the Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. These forward-looking statements are made as of the date hereof. HandHeld Entertainment does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.

MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
Russell Page, Politis Communications, 801-523-3730(wk), 801-787-8435(cell), rpage@politis.com or
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com

INVESTOR CONTACT FOR HANDHELD ENTERTAINMENT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

MEDIA CONTACT FOR IMG MEDIA:
Madeleine Pallas, IMG Media, +44 (0)20 8233 7425, mpallas@imgworld.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

This agreement gives ZVUE users and visitors to ZTV (www.zvue.com) access to one of the largest downloadable music video libraries in the world, featuring artists and recording acts from more than 20 labels, in genres ranging from hip hop, R&B and pop to country, rock and alternative

San Francisco, CA -- (ReleaseWire) -- 07/07/2006 -- HandHeld Entertainmentae (OTC BB: HNDH), the company behind the ZVUE™ family of mass-market portable media players and the zvue.com download store, today announced that it has signed a video distribution agreement with SONY BMG MUSIC ENTERTAINMENT.

Under terms of the agreement, HandHeld Entertainment now has the rights to distribute Sony BMG music videos via download through the ZVUE.com download store, where consumers will be able to purchase and download individual videos for replay on portable video players and personal computers. The ZVUE.com download store employs the Windows Media DRM.

About Sony BMG Music Entertainment
SONY BMG MUSIC ENTERTAINMENT is a global recorded music joint venture with a roster of current artists that includes a broad array of both local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. SONY BMG Music Entertainment is 50 percent owned by Bertelsmann A.G. and 50 percent owned by Sony Corporation of America.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with a family of mass-market portable media players priced at mass-market prices as well as its own online video content store. Its ZVUE portable media players are available for purchase online and in approximately 1,800 retail locations across the United States, while portable video lovers can visit ZTV™ (HandHeld Entertainment's video content store at www.zvue.com) to buy pay-per-download videos or download thousands of free media titles. For more information, visit www.hheld.com or call 415-495-6470.

HandHeld Entertainment, ZVUE and ZTV are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements. To the extent that any statements made in this release contain information that is not historical, these statements are forward-looking. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, without limitation: HandHeld Entertainment's dependence on contract manufacturing of its products; its reliance on a single major mass-market retailer; its ability to develop and market successfully and in a timely manner new products and services; its ability to predict market demand for, and gain market acceptance of, its products and services; the impact of competitive products and services and of alternative technological advances; its ability to raise additional capital to finance its activities; its limited and unprofitable operating history; its ability to operate as a public company; its ability to reduce product return rates; the affect of inventory and price protections required by major retailers; the availability and affordability of digital media content; its ability to protect its proprietary information and to avoid infringement of others' proprietary rights; its ability to attract and retain qualified senior management and research and development personnel; the reliability and security of its information systems and networks; and other factors described in HandHeld Entertainment's filings with the Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. These forward-looking statements are made as of the date hereof. HandHeld Entertainment does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.

MEDIA CONTACTS FOR HANDHELD ENTERTAINMENT:
Russell Page, Politis Communications, 801-523-3730(wk), 801-787-8435(cell), rpage@politis.com or
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com
INVESTOR CONTACT FOR HANDHELD ENTERTAINMENT:
Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

With 10,000-plus videos under contract from Canadian Broadcast Corp., ADV Films, IMG, Worldvision Cinema, Fun Little Movies, Sunflower Entertainment, StoryPIPE and others, HandHeld Entertainment’s ZVUE.com is providing fresh video content to ZVUE owners and owners of other PVPs and Windows PCs

San Francisco, CA -- (ReleaseWire) -- 06/30/2006 -- HandHeld Entertainmentae (OTC BB: HNDH) today announced it has launched its new ZVUE.com™ (www.zvue.com) video download store with easier navigation, a clean new design and a growing library of downloadable videos available for purchase or for free with more being added each week.

HandHeld Entertainment now has under contract more than 10,000 music videos, anime movies, cartoons, independent films, documentaries, news, entertainment and sports programs and other forms of video content from companies like Canadian Broadcast Corp., ADV Films, IMG, Worldvision Cinema, Fun Little Movies, Sunflower Entertainment, StoryPIPE and others. These videos (and more) will be added to the site during the next 12 months.

The ZVUE.com videos are available for purchase (or in some cases for free) and can be downloaded by owners of the ZVUE™ (HandHeld Entertainment's portable video player) or by owners of any other PVP or personal computer that supports Microsoft's Windows Media Video with DRM (digital rights management). The company will continue to add new video content to ZVUE.com weekly.

"The HandHeld team is committed to providing not only the best portable media players, but the best download site in the world for these players," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Our new site has a look and feel that is both exciting and easy to use. We think that consumers of downloadable entertainment – from PC users to ZVUE users to users of other portable media devices – will enjoy downloading videos from our large and growing library by using our new and exciting download site: ZVUE.com."

Videos available at ZVUE.com (or coming soon):

Since the beginning of 2006, HandHeld Entertainment has announced distribution agreements with companies ranging from Canadian Broadcast Corp. to ADV Films and from IMG to Fun Little Movies. Below is a summary of some of these companies and the type of videos HandHeld Entertainment is bringing to the download world through ZVUE.com.

Canadian Broadcast Corp. (CBC/Radio-Canada):
Canada's national public broadcaster and one of its largest cultural institutions, CBC/Radio-Canada is providing ZVUE.com customers with nearly 3,500 new videos during the next 12 months. These include the top eight news stories daily, two weekly news reports from CBC's Our World (along with a weekly movie review, and four fashion segments each week). In addition, HandHeld Entertainment's ZVUE.com is also adding 13 total comedic selections each month drawn from Naughty Pig, Pranx, Taste of Beckles and Zed, in addition to five Retro pieces each month as well. Visit http://www.zvue.com/html/searchresults.php?action=search&store=CBC for more details.

IMG:
IMG is a diversified global business and the world's premier sports, entertainment and media company, with two major business segments: IMG Sports & Entertainment, and IMG Media. IMG and HandHeld Entertainment have already announced two separate content agreements. The first IMG/HandHeld Entertainment agreement offers ZVUE.com visitors video access to some of the top fashion shows in the world, including Mercedes Australian Fashion Week in Sydney, Mercedes Benz Fashion Week at Smashbox Studios in Los Angeles and Olympus Fashion Week in New York. In addition, ZVUE.com customers also got access recently to English and Spanish highlights of the exciting soccer finals match of the 2006 Champions League Cup Final which saw FC Barcelona land a thrilling 2-1 victory over Arsenal in the Stade de France in Paris. Visit http://www.zvue.com/html/searchresults.php?action=search&store=IMG for more details.

ADV Films:
The No. 1 producer-distributor of Japanese animation ("anime") for the North American market, ADV Films is delivering anime videos to ZVUE.com users through its agreement with HandHeld Entertainment. Among the titles anime fans will find on ZVUE.com are videos from such hit anime series as Azumanga Daioh, DNAngel, Elfen Lied, Gilgamesh, Godannaar and Magical Shopping Arcade Abenobashi. Visit http://www.zvue.com/html/searchresults.php?a

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