Gets Hip-Hop, Gospel and Metal Videos for Online Download at ZVUE.com

HandHeld Entertainment(TM) (OTCBB: HNDH - News) today announced that a number of punk rock concert videos, in addition to hip-hop, gospel and metal concert videos from Music Video Distributors’ extensive library of concert videos, movies and comedy films have been made available for purchase and download at the ZTV digital download store.

The new ZTV videos, available through a licensing agreement with MVD, include 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 from former Saturday Night Live comedian Jim Breuer and cult indie films like “Southlander.”

“People want a lot of choice when it comes to their entertainment, which makes it thrilling for us to add MVD’s wide variety of punk, hip-hop, gospel and metal videos to our growing ZTV digital download store,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We’re also adding more comedy shorts and independent films from MVD’s library.”

The MVD agreement comes on the heels of recent HandHeld Entertainment announcements, including a music partnership with eMusic, the addition of Latin music videos from Sunflower Entertainment, the acquisition of 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, and classic TV programs and cartoons from ikeTelevision.

“The ZTV digital download store provides an innovative way for us to deliver videos of world-class artists to even more audiences,” said Michael DeMonte of Music Video Distributors. “The portability of the ZVUE lets you take video from Iggy Pop to Trick Daddy with you for on-the-go entertainment.”

About the ZVUE

Available today in more than 1,800 Wal-Mart stores around the United States, the $99 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.

About Music Video Distributors

Since 1986, Music Video Distributors (MVD) has supplied consumers, retailers and distributors with a diverse selection of quality music-related DVDs. In addition, MVD sells more than 50,000 different DVDs to more than 10,000 storefronts across the United States and Canada. MVD also counts Best Buy, Blockbuster, Borders, Fry’s Electronics, Hollywood Video, K-Mart, Tower Records, Transworld, Virgin and Wal-Mart as customers.

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 more than 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, ZTV 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 effect 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.

Contact:

Politis Communications
Russell Page, 801-523-3730 (Media)
Cell: 801-787-8435
rpage@politis.com
or
The Del Mar Consulting Group Inc.
Robert Prag, 858-794-9500 (Investor)
bprag@delmarconsulting.com

Source: HandHeld Entertainment