HandHeld Entertainment Launches ZVUE Premium Channel of Streaming Premium Content Channels on ZVUE

PRLog (Press Release) - Jul 19, 2007 -
SAN FRANCISCO – July 19, 2007 – HandHeld Entertainment™ (NASDAQ: ZVUE), a global digital entertainment company, today announced the launch of ZVUE Premium™, a group of premium channels streaming free, full-length, ad-supported videos on ZVUE.com™, FunMansion.com™ and Dorks.com™.

Included in the ZVUE Premium library are a variety of full-length videos such as crazy antics caught on film by National Lampoon, the outrageous comedy acts of Comedy Time, popular anime videos from ADV Films, and news and entertainment programs from Canadian Broadcast Corporation (CBC). Commercial-free versions of the content are also available for purchase on ZVUE.com. The programs are available for playback on personal computers (PCs) and can also be purchased within the sites’ “channels” section for use on HandHeld Entertainment’s ZVUE™ MP3 Video Players, including the newly released ZVUE 260, as well as on all other personal media players (PMPs) that support Windows Media Player with Digital Rights Management (DRM).

“Launching ZVUE Premium is another step toward reaching our goal of providing our users with the best of both commercial and user-generated content,” said Jeff Oscodar, president and CEO of HandHeld. “Our programming ranges from celebrity entertainment and anime programs to the best in comedy and legitimate news stories. We are pleased to be able to provide this premium content to our millions of users at no cost on multiple Web properties and to couple it with a low-cost purchase option so viewers can take videos with them wherever they go.”

Multiple programs and program episodes will be available from ZVUE Premium. Brief descriptions of some of the programs found today on ZVUE Premium are listed below.
•   National Lampoon is home to the greatest comedy, entertainment and college humor available on the Internet, including videos from “Collegetown USA,” “Sketch Comedy” and “Imposter.”
•   Comedy Time is one of the first networks launched primarily for mobile networks and has become the global market leader in original comedy content created for wireless handsets. The comedy routines span several comedy genres, including “Urban,” “Latin” and “Showcase.”
•   ADV Films is the No. 1 producer-distributor of anime outside of Japan, and it is bringing the anime revolution to consumers throughout the United States with popular programs such as “Steam Detectives,” “Area 88,” “Mezzo” and “Divergence Eve.”
•   Canadian Broadcasting Corporation is home to Canada’s most popular programs, several of which are available on ZVUE Premium, including “The Movie Scene,” “CBC News,” “CBC Fashion Files,” “The Hour” and “CBC Retro.”
•   The Five Spot is a weekly compilation of the top five user-generated video clips found throughout the entire HandHeld network of Web sites.

“The library of hundreds of full-length programs and video clips currently available on ZVUE Premium is simply the beginning of a long-term strategic plan to make all videos in the HandHeld network of Web properties available to our consumers via free, ad-supported streaming connections,” Oscodar said. “As we expand the accessibility of our more than half a million videos for our users, we are also growing our user base through European expansion. We hope to provide the greatest and most in-demand entertainment for HandHeld users all over the world.”

Since mid-November 2006, HandHeld Entertainment has acquired six Web sites that specialize in user-generated content: Dorks.com, FunMansion.com, YourDailyMedia.com™, Putfile.com™, UnOriginal.co.uk™ and Holylemon.com™. In addition, ZVUE.com (the company’s Web store) currently houses thousands of premium video and audio selections, selections that are available for preview, purchase, download and playback on personal computers or personal video players (PVPs).

Taken in concert, HandHeld Entertainment’s network of seven Web sites in the U.S. and Europe offer more than 525,000 premium and free videos and other media available for purchase, download and/or free ad-supported streaming. These include 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 National Lampoon, 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 HandHeld Entertainment, Inc.
HandHeld Entertainment (NASDAQ: ZVUE) is a global digital entertainment company. Its network of Web sites (Putfile.com, Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, Dorks.com, FunMansion.com and ZVUE.com) now houses more than 525,000 user-generated and premium videos available for purchase or free viewing. Its ZVUE personal media players are mass-market priced and currently available for purchase online and in more than 2,200 Wal-Mart stores throughout the U.S. For more information, visit www.hheld.com.

HandHeld Entertainment, ZVUE Premium, ZVUE.com, FunMansion.com, Dorks.com, ZVUE, Putfile.com, YourDailyMedia.com, UnOriginal.co.uk and Holylemon.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 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 AT POLITIS COMMUNICATIONS FOR HANDHELD ENTERTAINMENT:
David Politis, 801-523-3730 (wk), 801-556-8184 (cell), dpolitis@politis.com or
Jonathan Bacon, 801-523-3730 (wk), 801-660-7820 (cell), jbacon@politis.com

INVESTOR CONTACT AT THE BLUESHIRT GROUP FOR HANDHELD ENTERTAINMENT:
Scott Wilson, 415-489-2188, scott@blueshirtgroup.com