ZVUEU Handheld Entertainment Unit (MM)

HandHeld Entertainment (NASDAQ: ZVUE, ZVUEW) today announced that trading of company warrants began today on the NASDAQ Capital Market as ZVUEW and on the Boston Stock Exchange as HDEW, while units of HandHeld Entertainment (ZVUEU/HDEU) stopped trading at the close of business on Friday, November 3. On August 14, 2006, HandHeld Entertainment sold 1.2 million units in a fully registered secondary offering, with each unit consisting of one share of common stock and one five-year warrant to purchase an additional share of common stock at an exercise price of $6.06 or 125 percent of the unit offering price. The warrants are also redeemable by the company if the underlying common stock (ZVUE/HDE) trades above 175 percent of the unit offering price for 20 consecutive trading days. The underwriters of the secondary offering have elected to exercise their rights to separate the unit into common stock and warrants within the maximum 90-day conversion window defined by the terms of the secondary offering. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. About HandHeld Entertainment, Inc. With shares of its common stock 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 more than 1,800 retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment�s video download store, ZVUE.com� at www.zvue.com to buy pay-per-download videos or download thousands of free media titles. 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. HandHeld Entertainment (NASDAQ: ZVUE, ZVUEW) today announced that trading of company warrants began today on the NASDAQ Capital Market as ZVUEW and on the Boston Stock Exchange as HDEW, while units of HandHeld Entertainment (ZVUEU/HDEU) stopped trading at the close of business on Friday, November 3. On August 14, 2006, HandHeld Entertainment sold 1.2 million units in a fully registered secondary offering, with each unit consisting of one share of common stock and one five-year warrant to purchase an additional share of common stock at an exercise price of $6.06 or 125 percent of the unit offering price. The warrants are also redeemable by the company if the underlying common stock (ZVUE/HDE) trades above 175 percent of the unit offering price for 20 consecutive trading days. The underwriters of the secondary offering have elected to exercise their rights to separate the unit into common stock and warrants within the maximum 90-day conversion window defined by the terms of the secondary offering. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. About HandHeld Entertainment, Inc. With shares of its common stock 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(TM) portable media players are available for purchase online and in more than 1,800 retail locations across the U.S., while portable video lovers can visit HandHeld Entertainment's video download store, ZVUE.com(TM) at www.zvue.com to buy pay-per-download videos or download thousands of free media titles. 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.