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Monday, October 23, 2006

HandHeld Entertainment Launches Beta Version of ZAPP Media Manager 1.0

HandHeld Entertainment(TM) (Nasdaq:ZVUE) (Nasdaq:ZVUEU) today announced the beta launch of ZAPP(TM) Media Manager version 1.0, the company’s latest software application for managing digital videos, music and photos for use on personal computers and ZVUE(TM) portable video players (PVPs).

Previously known as ZOrg(TM), ZAPP 1.0 beta is now live and available for free to all ZVUE owners at the ZVUE.com(TM) (http://www.zvue.com) video download store at http://www.zvue.com/players/zapp.php. The beta is expected to run for the next several weeks before a finalized version is released to the general public. The new version of the software is easy to use and simplifies the steps to find PC-based content and convert it for video playback on PCs and ZVUEs.

ZAPP v1.0 links ZVUE.com and PCs and ZVUE devices in four major areas as it helps individuals:

• Find music, photos, videos and podcasts on PCs and transfer them to ZVUE players;
• Find music, photos, videos and podcasts on PCs and transfer them to ZVUE players;
• Gain seamless access to thousands of music videos, TV shows and movies at http://www.ZVUE.com; and
• Keep ZVUE players up-to-date with the latest firmware.

“We believe that ZAPP v1.0 is the most user-friendly media manager program for helping consumers put digital media on a ZVUE,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “We have hidden most of the complexity from the user so tasks like reformatting video and updating firmware are handled with little or no user interaction making such operations nearly transparent. For ZVUE users, that means less time wrestling with software and more time enjoying digital media on the go. We are confident that ZVUE users will be impressed by the results they get from using the ZAPP 1.0 beta. Obviously feedback on the beta is important to us so we can perfect the product before its full launch next month.”

HandHeld Entertainment has more than 3,000 videos available for purchase on ZVUE.com out of more than 10,000 video selections it currently has under contract. These selections include music videos, anime features, television shows, movies, cartoons, independent films, documentaries, news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media and from Canadian Broadcast Corp. to Fun Little Movies. Each of these video selections (as well as thousands of free videos also available from HandHeld Entertainment), MP3 recordings and other forms of digital content can be managed by the beta of ZAPP Media Manager 1.0 on a Windows PC, ZVUE and other PVPs.

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 http://www.zvue.com to buy pay-per-download videos or download thousands of free media titles. For more information, visit http://www.hheld.com or call 415-495-6470.