HandHeld Entertainment Expands ZVUE Distribution to Australia and New Zealand

HandHeld Entertainment (OTC BB: HNDH), today announced it is expanding distribution of its ZVUE™ family of portable media players globally to Australia and New Zealand via a relationship with Australia-based World Tech Distributors Pty. Ltd.

[ClickPress, Thu Mar 30 2006] HandHeld Entertainment (TM) (OTC BB: HNDH), today announced it is expanding distribution of its ZVUE™ family of portable media players globally to Australia and New Zealand via a relationship with Australia-based World Tech Distributors Pty. Ltd.

“One of the most attractive things about the ZVUE is that it’s a portable entertainment device designed for mums and dads looking for a cool gift for their kids at an affordable price,” said Clive Nixon, sales manager for World Tech Distributors. “At $189 (AUS), the ZVUE will enter this market as the most competitively priced color portable video player available, priced hundreds of dollars less than the video iPod and more than $1,000 (AUS) less than certain portable media players. For that reason, we’re quite proud to become the sole ZVUE distributor throughout Australia and New Zealand.”

World Tech will be the sole distributor of ZVUEs in Australia and New Zealand through a network of retailers. In addition, the entry-level ZVUE 200A is now available for online purchase in Australia and New Zealand through World Tech at www.zvue.com.au. World Tech will also distribute and sell the other ZVUEs slated to begin shipping in 2006, including the ZVUE 250, ZVUE 400 and the ZVUE 500 with WiFi.

“There has always been a high demand for the ZVUE outside of the United States,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “World Tech is a great partner for us to have as we expand the ZVUE experience to a growing number of markets. They have direct relationships with many of Australia and New Zealand’s most influential electronics retailers.”

About the ZVUE
The ZVUE plays videos and MP3 files available from the ZVUE.com download store and also lets 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. (EDITOR’S NOTE: Digital photos of the entry-level ZVUE 200A, as well as the other ZVUE portable media players, are available for download at http://ftp.hheld.com/.)

About World Tech Distributors
World Technology Distributors, a distributor of digital devices in Australia and New Zealand, is part of the Export Mission group of companies (EMIS). EMIS also includes Export Mission Data and Internet Services, one of Melbourne’s oldest Internet Service Providers (a company that also provides expertise and programming services to small business and major corporations); www.centre.net.au, the longest running e-commerce store based in Australia; and GNS, the import arm of EMIS that imports millions of dollars worth of cameras and other digital devices from all over the world.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a “pure play” 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 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 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 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.

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