San Francisco, CA -- (ReleaseWire) -- 11/16/2006 --HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced that the company and Newbridge Securities Inc., the lead underwriter in HandHeld Entertainment’s August 2006 secondary offering, have released the market standoff provision which allows the common shares issued in HandHeld Entertainment’s PIPE financing transaction completed in February 2006 to trade prior to the 180-day restriction imposed under the registration rights agreement previously entered with the PIPE investors.

PIPE investors desiring to sell under the effective registration statement must deliver a current prospectus which is available for download as Form 424B3 filed on August 30, 2006 (File No. 333-133215) from the SEC’s Web site (www.sec.gov). The release of this provision will allow the 3,238,558 shares registered under the prospectus to become free trading and increases the public float of the company’s common stock to approximately 6.3 million shares.

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 warrants traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW), 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 video 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. Customers can also download free user-generated video selections by visiting Dorks.com, a HandHeld Entertainment company. For more information, visit www.hheld.com/ir or call 415-495-6470.

HandHeld Entertainment, ZVUE and ZVUE.com 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.