HandHeld Entertainment

HandHeld Entertainment Opens the Doors of ZVUE.com to All Manufacturers of Portable Video Players

Manufacturers must support Windows Media Video with Digital Rights Management


San Francisco, CA -- (ReleaseWire) -- 09/13/2006 --With one of the largest libraries of purchasable digital videos on the 'Net, HandHeld Entertainment announces plans to re-brand and re-launch ZVUE.com to better position the online video download store as the "online video source for PVP owners looking to expand their digital video collections"

"All portable video players should have a complete content solution." That's the message coming from HandHeld Entertainment(TM) today as the company invites all manufacturers of portable video players that support Windows Media Video with Digital Rights Management to partner with HandHeld in delivering a growing library of digital videos to PVP owners everywhere.

"Consumers purchasing any PVP, whether made by Archos, Creative, iRiver, Samsung, Sony, Thomson, HandHeld or any other manufacturer, should receive a complete content solution with their device," said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. "We provide that solution to both to PVP manufacturers and to end-users. This step marks the beginning of the second phase of our business strategy."

In connection with today's invitation, HandHeld Entertainment also announces plans to re-brand and re-launch ZVUE.com to better position the online video download store as "the online video source for all PVP owners looking to expand their digital video collections," and not just our ZVUEs.

Since 2004, HandHeld Entertainment (NASDAQ: ZVUE - News, ZVUEU - News) has been aggregating content aimed at playback on its $99 value-priced ZVUE(TM) portable media player. The company says today that this library is open to all PVPs from all manufacturers and not just its ZVUE products.

"Instead of locking in PVP end-users to our content site and locking out other PVP manufacturers, we're taking an open approach with ZVUE.com," Oscodar said. "With all deference to Apple Computer and its closed iPod/iTunes system, the Internet is all about open standards and making content available to as many people possible wherever they might be with whatever device they choose to use. That's why we are formally inviting any and all PVP owners to come to our site and manufacturers that support the Windows Media Video standard with DRM to work with us to provide their customers with a complete content solution.

Currently, HandHeld Entertainment has more than 10,000 pieces of video content under contract and more than 3,000 video selections live on ZVUE.com today available for immediate purchase and download. As such, HandHeld Entertainment has aggregated one of the largest libraries on the Internet of purchasable videos that can play on multiple portable video players, as well as on personal computers.

"We have already amassed a large video library, and we intend to build it into the online video source for PVP owners looking to expand their digital video collections," Oscodar said. "Along these lines, we will continue to aggregate the most relevant video content for PVPs. More importantly, these videos are already compatible with devices made by Thomson, Sony, Samsung, iRiver, Creative, Archos and many, many other manufacturers. Because of our open approach, owners of these devices can already use our video download store.

"So we invite you to join with us in making your end-users' experiences even easier and more enjoyable. All portable video players should have a complete content solution. Call us. Let's talk."

More info about the soon-to-be-renamed ZVUE.com:

Since the beginning of 2006, HandHeld Entertainment has announced video and music 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 the soon-to-be-renamed ZVUE.com (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 digital video selections under contract and becoming available for purchase and download, including

* 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 from IMG Media;
* world-famous fashion shows from IMG Media;
* weekly episodes of Gamer.tv, the world's top weekly computer gaming show, also from IMG;
* anime movies from North America's No. 1 producer-distributor of Japanese anime, ADV Films;
* legendary punk rock videos from Music Video Distributors, including 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 and cult indie films;
* Latin music videos from Sunflower Entertainment featuring popular artists such as Joe Arroyo, Sonora Carruseles, La Sonora Dinamita, and Fruko y Sus Tesos, as well as rising stars such as Bimbo, Hancel, Propheta and Judiny, Aris Martinez, and Pablo Bachata;
* 1,500 full-length films and television shows from Worldvision Cinema that showcase early performances by many of today's Hollywood stars, including performances by Jackie Chan, Robert De Niro, Morgan Freeman, Demi Moore, John Wayne and W.C. Fields, as well as classic films from Alfred Hitchcock;
* comedic movies from Fun Little Movies, a compilation of short comedy films that have received many cinematic awards, including First Prize for Best Comedy at the World's Smallest Film Festival and a finalist's place for Best Short Film at the Cannes Film Festival;
* extreme sports videos from TotalVid, including extreme sporting videos and productions including skateboarding, inline skating, kiteboarding, mountain biking, paintball, skiing, snowboarding, snowmobiling, surfing, wakeboarding, motorsports and windsurfing videos;
* classic TV programs and cartoons from LikeTelevision, including documentaries on the Olympic Games or Pearl Harbor, as well as classics like the "Johnny Carson Show" and Felix the Cat cartoons; and
* independent films from StoryPIPE.com.

Executives at PVP manufacturers interested in learning more about today's invitation from HandHeld Entertainment's to partner with it in providing purchasable digital videos to their PVP owners should contact Jeff Oscodar at jeffo@hheld.com.

About HandHeld Entertainment, Inc.

With shares and units of its common stock available for purchase on the NASDAQ Capital Market (ZVUE, ZVUEU) and Boston Stock Market (HDE, HDEU), 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 retail locations across the U.S., 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 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 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.