HandHeld Entertainment, Inc.

HandHeld Entertainment Deal with Egami Media will Add 1,500+ Digital Videos to the ZVUE.com Video Download Store

Live concert videos, IMAX features, stand-up comedy, and independent, foreign and silent film classics being added to ZVUE.com


San Francisco, CA and Chatsworth, CA -- (ReleaseWire) -- 11/01/2006 --HandHeld EntertainmentÔ (NASDAQ: ZVUE, ZVUEU) and Egami Media, Inc. today announced an agreement that will bring more than 1,500 new video selections to ZVUE.com™, HandHeld Entertainment’s video download store.

A leading aggregator of digital media content and a subsidiary of Image Entertainment, Inc. (NASDAQ: DISK), Egami is providing ZVUE.com with concert films ranging from “KISS: Rock the Nation: Live!” and “Roy Orbison: Black & White Night,” as well as an assortment of video programs from jazz great Chick Corea and dozens of other performances and documentaries across the musical spectrum.

The ZVUE.com library will also be expanded by Egami to include Bruce Brown’s classic surf film “Endless Summer,” the MacGillivray Freeman IMAX collection, stand-up comedy performances, television programming and foreign and independent films. ZVUE.com users will also have access to restored silent and classic films, such as historically significant programs from D.W. Griffith (“Intolerance” and “Birth of a Nation”), F.W. Murnau (“Nosferatu”) and shorts from Charlie Chaplin’s Mutual years, among others.

“We’re excited to join with Egami to offer its broad range of live concert footage and music documentaries, as well as its other selections of digital entertainment media to ZVUE™ users and other portable video player owners,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We are constantly looking for ways to provide more content to our users and Egami Media has the type of blend we look for in a partnership. In total, we feel that adding the Egami library to ZVUE.com is a solid step forward for our customers everywhere. ”

“We believe that Egami Media is a perfect match for HandHeld Entertainment and ZVUE users,” said Martin W. Greenwald, president and CEO of Image Entertainment and chairman of the board of Egami Media. “ZVUE.com is a great channel for our vast media catalogue and will help us reach an even greater audience of digital content users, since this makes our videos portable. We believe portable video content is an important and natural evolution for the home entertainment industry, and we are confident this agreement is another step in Egami’s aggressive approach to the world of digital distribution.”

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 11,000 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 digital video selections 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.

About the ZVUE
Available today in more than 1,800 Wal-Mart stores throughout 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 to 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.
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.

About Egami Media
Egami Media, Inc. is a subsidiary of Image Entertainment, Inc. (NASDAQ: DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America. Egami focuses on the aggregation and wholesale exploitation of digital rights to a wide array of video content. Egami has acquired all of Image’s current and future digital rights and will independently acquire digital rights to third party content on a going forward basis.

HandHeld Entertainment, ZVUE.com 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.

David Politis, Politis Communications, 801-523-3730(wk), 801-556-8184(cell), dpolitis@politis.com or
Jonathan Bacon, Politis Communications, 801-523-3730(wk), 801-660-7820(cell), jbacon@politis.com

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

Steve Honig, The Honig Company, Inc., 310-246-1801, press@honigcompany.com