ZVUEU Handheld Entertainment Unit (MM)

With 10,000+ Videos under Contract for ZVUEs as Well as Other Portable Video Players That Support Windows Media Video with DRM, HandHeld Entertainment Provides a Growing Venue for All PVP/PMP Users HandHeld Entertainment(TM) (NASDAQ:ZVUE), (NASDAQ:ZVUEU) now has more than 3,000 videos available for purchase and download on ZVUE.com, the company's video download store, making it one of the "largest video download stores on the Internet." "Since unveiling the new ZVUE.com Web site in late June, we've seen our downloadable video inventory grow from less than 500 videos to more than 3,000 videos, and we're adding more videos weekly," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "We now have one of the largest video download stores on the Internet, and with more than 10,000 videos and video segments under contract today, we plan to become the largest provider of legal downloadable videos for anyone using a portable video player that supports Windows Media Video (WMV) with Digital Rights Management (DRM)." Designed initially for individuals using HandHeld Entertainment's ZVUE(TM) portable media player, ZVUE.com videos can now be played on any PMP/PVP or personal computer that uses WMV with DRM. The ZVUE.com Web site currently has more than 2,200 music videos available for purchase from some of the most popular artists and recording acts in genres ranging from country to jazz and from pop to rock. In addition, ZVUE.com also features a growing library of other video selections, including anime movies, cartoons, independent films, documentaries, news, entertainment and sports programs, and other forms of video content. The 10,000+ videos and video segments that HandHeld Entertainment currently has under contract include -- 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. About the ZVUE Available today in more than 2,000 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 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, 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.