With 10,000-plus videos under contract from Canadian Broadcast Corp., ADV Films, IMG, Worldvision Cinema, Fun Little Movies, Sunflower Entertainment, StoryPIPE and others, HandHeld Entertainment’s ZVUE.com is providing fresh video content to ZVUE owners and owners of other PVPs and Windows PCs

San Francisco, CA -- (ReleaseWire) -- 06/30/2006 --HandHeld Entertainmentä (OTC BB: HNDH) today announced it has launched its new ZVUE.com™ (www.zvue.com) video download store with easier navigation, a clean new design and a growing library of downloadable videos available for purchase or for free with more being added each week.

HandHeld Entertainment now has under contract more than 10,000 music videos, anime movies, cartoons, independent films, documentaries, news, entertainment and sports programs and other forms of video content from companies like Canadian Broadcast Corp., ADV Films, IMG, Worldvision Cinema, Fun Little Movies, Sunflower Entertainment, StoryPIPE and others. These videos (and more) will be added to the site during the next 12 months.

The ZVUE.com videos are available for purchase (or in some cases for free) and can be downloaded by owners of the ZVUE™ (HandHeld Entertainment’s portable video player) or by owners of any other PVP or personal computer that supports Microsoft’s Windows Media Video with DRM (digital rights management). The company will continue to add new video content to ZVUE.com weekly.

“The HandHeld team is committed to providing not only the best portable media players, but the best download site in the world for these players,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “Our new site has a look and feel that is both exciting and easy to use. We think that consumers of downloadable entertainment – from PC users to ZVUE users to users of other portable media devices – will enjoy downloading videos from our large and growing library by using our new and exciting download site: ZVUE.com.”

Videos available at ZVUE.com (or coming soon):

Since the beginning of 2006, HandHeld Entertainment has announced distribution agreements with companies ranging from Canadian Broadcast Corp. to ADV Films and from IMG to Fun Little Movies. Below is a summary of some of these companies and the type of videos HandHeld Entertainment is bringing to the download world through ZVUE.com.

Canadian Broadcast Corp. (CBC/Radio-Canada):
Canada’s national public broadcaster and one of its largest cultural institutions, CBC/Radio-Canada is providing ZVUE.com customers with nearly 3,500 new videos during the next 12 months. These include the top eight news stories daily, two weekly news reports from CBC's Our World (along with a weekly movie review, and four fashion segments each week). In addition, HandHeld Entertainment’s ZVUE.com is also adding 13 total comedic selections each month drawn from Naughty Pig, Pranx, Taste of Beckles and Zed, in addition to five Retro pieces each month as well. Visit http://www.zvue.com/html/searchresults.php?action=search&store=CBC for more details.

IMG:
IMG is a diversified global business and the world’s premier sports, entertainment and media company, with two major business segments: IMG Sports & Entertainment, and IMG Media. IMG and HandHeld Entertainment have already announced two separate content agreements. The first IMG/HandHeld Entertainment agreement offers ZVUE.com visitors video access to some of the top fashion shows in the world, including Mercedes Australian Fashion Week in Sydney, Mercedes Benz Fashion Week at Smashbox Studios in Los Angeles and Olympus Fashion Week in New York. In addition, ZVUE.com customers also got access recently to English and Spanish highlights of the exciting soccer finals match of the 2006 Champions League Cup Final which saw FC Barcelona land a thrilling 2-1 victory over Arsenal in the Stade de France in Paris. Visit http://www.zvue.com/html/searchresults.php?action=search&store=IMG for more details.

ADV Films:
The No. 1 producer-distributor of Japanese animation (“anime”) for the North American market, ADV Films is delivering anime videos to ZVUE.com users through its agreement with HandHeld Entertainment. Among the titles anime fans will find on ZVUE.com are videos from such hit anime series as Azumanga Daioh, DNAngel, Elfen Lied, Gilgamesh, Godannaar and Magical Shopping Arcade Abenobashi. Visit http://www.zvue.com/html/searchresults.php?a