HandHeld Entertainment Surpasses 500,000 Videos on its Network of Web Properties

Between its premium videos site (ZVUE.com), and its user-generated content Web sites, HandHeld Entertainment now has one of the largest online libraries of user-generated and premium videos in the world

[ClickPress, Tue Mar 13 2007] HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced that it now has more than 500,000 total videos available for purchase/downloading or free viewing on its network of Web properties, giving the company one of the largest online video libraries in the world.

“Passing the half-million mark for total videos posted on our five Web sites is a true milestone for our company and a testament to the fact that our strategy is working,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We’ve acquired four Web sites since November 2006, properties primarily focused on humorous content, and we’re seeing our content inventory grow on each of those sites. As a result, we now have one of the largest online libraries of both premium and user-generated videos in the world.”

Starting in mid-November 2006, HandHeld Entertainment has acquired (in chronological order) Dorks.com™, FunMansion.com™, YourDailyMedia.com™ and Putfile.com™. In addition, ZVUE.com™ (the company’s Web store) currently houses more than 12,000 premium video and audio selections, selections that are available for preview, purchase, download and playback on personal computers or personal media players (PMPs).

HandHeld Entertainment’s Web sites offer premium music videos, anime features, television shows, movies, cartoons, independent films, documentaries, and 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. Customers can also select from millions of songs that can be played on a PMP through HandHeld Entertainment’s relationships with eMusic and Rhapsody (see http://www.zvue.com/html/music.php).

About the ZVUE
HandHeld Entertainment’s ZVUE™ line of portable media players is available in more than 2,000 Wal-Mart stores throughout the United States, as well as through other retailers and on the Internet. The ZVUE carries a suggested retail price of $99(US), plays videos and MP3 files available from HandHeld Entertainment’s Web sites and also allows users to view digital pictures from a digital camera or recorded on a camcorder. HandHeld Entertainment also supplies Wal-Mart and InMotion Entertainment with the ZVUE MP3 player, an MP3 player pre-loaded with 30 of the top songs from 2006.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company. Its network of Web sites (Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com and ZVUE.com) now house more than 500,000 user-generated and premium videos in total, videos available for purchase or free viewing. Its ZVUE personal media players are mass-market priced and available for purchase online and in more than 2,000 Wal-Mart stores throughout the U.S. HandHeld Entertainment’s common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), respectively. For more information, visit www.hheld.com/ir or call 415-495-6470.

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HandHeld Entertainment, Dorks.com, Putfile.com, YourDailyMedia.com, FunMansion.com, ZVUE.com 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 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

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