HandHeld Entertainment

Gamer.tv Now Available for ZVUEs and Other Portable Video Players Through HandHeld Entertainment and IMG Media

HandHeld Entertainment looks to capitalize on a worldwide population of millions of gamers by making a new episode of the weekly Gamer.tv show available online through the download store ZVUE.com


San Francisco and London UK -- (ReleaseWire) -- 07/28/2006 --HandHeld Entertainment( (OTC BB: HNDH), the company behind the ZVUE(tm) family of mass-market portable media players and the ZVUE.com download store, and IMG Media, a division of international sports, entertainment and media giant IMG, today announced that they have teamed up to offer Gamer.tv episodes through HandHeld Entertainment's video download store at ZVUE.com.

Gamer.tv, the world's leading weekly magazine format television show dedicated to video games, mixes reviews and previews of the latest games with exclusive news reports to keep viewers up to date with the computer gaming industry. With nearly two million viewers in the United Kingdom alone, London, England-based Gamer.tv has a larger audience than the combined total of all other specialist games publications in the U.K. Meanwhile, a total reach of 220 million homes worldwide ensures that Gamer.tv keeps gamers in North America, Europe and Asia in the know when it comes to video games.

"With a current worldwide population of millions of gamers, we believe there will be substantial interest in making Gamer.tv episodes available in the U.S. to ZVUE users and owners of other portable video players that support Microsoft's Windows Media Video, as well as personal computers running WMV," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "Gamer.tv is clearly the worldwide leader in news, reviews and entertaining information for the video games crowd, so we're pleased to be able to continue to expand our content offerings on ZVUE.com with Gamer.tv shows."

Today's Gamer.tv announcement marks the third time in three months that HandHeld Entertainment and IMG Media have disclosed a content distribution agreement between the two firms. The first agreement covered the availability of IMG fashion shows on ZVUE.com, while the second agreement provided ZVUE users and other PVP users with access to highlights 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, France.

"We feel that Gamer.tv is a perfect match for HandHeld Entertainment and ZVUE users," said Ben Nicholas, senior vice president, U.K. and New Media Sales of IMG Media. "We like what we have seen in the growing library of fun and compelling video content on ZVUE.com, and we look forward to the prospect of future projects with HandHeld Entertainment."

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

Since the beginning of 2006, HandHeld Entertainment has announced distribution agreements with companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies.

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 available for purchase (or in some cases free download) at www.zvue.com.

Recent partnerships and distribution agreements between these leading creators of video content and HandHeld Entertainment have allowed the company to aggregate one of the largest Internet collections of video selections available for purchase and download. Beyond today's announcement, such agreements have included the addition of:

* thousands of music videos from SONY BMG MUSIC ENTERTAINMENT,
* nearly 3,500 news and entertainment video selections from Canadian Broadcast Corporation,
* video highlights of FC Barcelona's 2-1 2006 European Cup Win over Arsenal and world-famous fashion shows from IMG Media,
* anime movies from North America's No. 1 producer-distributor of Japanese anime, ADV Films,
* legendary punk rock videos from Music Video Distributors,
* Latin music videos from Sunflower Entertainment,
* 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,
* classic TV programs and cartoons from LikeTelevision,
* as well as a music partnership with eMusic.

About the ZVUE
Available today in approximately 1,800 Wal-Mart stores around the United States, as well as online at such locations as Amazon.com, the $99 (US) ZVUE plays videos and MP3 files available from the ZVUE.com download store and also allows 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 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 approximately 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, ZVUE and ZTV 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 Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and 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.

Russell Page, Politis Communications, 801-523-3730(wk), 801-787-8435(cell), rpage@politis.com or
David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com

Robert Prag, The Del Mar Consulting Group, Inc., 858-794-9500, bprag@delmarconsulting.com

Madeleine Pallas, IMG Media, +44 (0)20 8233 7425, mpallas@imgworld.com