San Francisco, CA -- (ReleaseWire) -- 01/04/2007 --HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced it launched ZVUE.com/mobile™. – a micro Web site the company promised it would launch by the end of 2006. The launch of ZVUE.com/mobile makes it possible for millions of smartphone users and PocketPC users to easily download and watch videos on those devices.

The ZVUE.com/mobile site contains 25 free user-generated videos that are available for downloading and playback onto a Windows Mobile 5.0 and Windows 2003 device over a carrier network. In addition, anyone with a Web-enabled smartphone or PocketPC running Windows Media Player 10 Mobile can now log onto ZVUE.com/mobile from their device and download/watch one of the thousands of videos they’ve already saved or purchased from ZVUE.com™.

“We said we’d launch a Windows Mobile 5.0 micro site by the end of the year and we did it,” said Jeff Oscodar, president and chief executive officer of HandHeld Entertainment. “The ZVUE.com/mobile site makes it possible for any registered user of ZVUE.com to buy a video on a PC and then download and watch that video on a Web-enabled smartphone or PocketPC. As a result, we now have thousands of premium videos available for millions of cell phone users.

“Additionally, we’ve made 25 of our top user-generated videos immediately available for free download and playback on these same Web-enabled portable devices. This list of free user-generated videos available for smartphones and PocketPCs will grow weekly as we add more free videos to ZVUE.com/mobile. Viewing great user-generated videos on-the-go on mobile devices is something that we believe our users want. The generation that has made user-generated videos a huge phenomenon is also an extremely mobile generation, and we think this combination will be very compelling.”

Current Windows Mobile 5.0 devices with Windows Media Player 10 Mobile are available in the United States from such mobile operators as Cingular, Sprint, T-Mobile and Verizon, as well as from manufacturers such as Dell, Hewlett Packard, Palm, and Samsung. (For additional information about Windows Mobile 5.0, including manufacturers and mobile operators supporting the operating system, please visit www.windowsmobile.com).

HandHeld Entertainment now has nearly 12,000 videos available to its users through its network of Web sites. These include premium 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, as well as free user-generated and user-submitted video selections and other forms of media.

Since premium videos found on ZVUE.com/mobile and ZVUE.com are available as Windows Media Video (WMV) files, a one-time license agreement is all that is required to play such videos on a Windows Mobile powered device with Windows Media Player 10 Mobile. Once stored on a WMP10-compatible device, these videos can be viewed again and again.

About HandHeld Entertainment, Inc.
HandHeld Entertainment is a digital-media-to-go company with its ZVUE family of mass-market portable media players priced at mass-market prices. In addition, the company owns a network of Web sites containing premium video selections and free downloadable media selections, including ZVUE.com, the Free STUFF! section of ZVUE.com, as well as YourDailyMedia.com, Dorks.com and FunMansion.com, wholly owned subsidiaries of HandHeld Entertainment. HandHeld Entertainment’s common stock and warrants are traded on the NASDAQ Capital Market (ZVUE, ZVUEW) and Boston Stock Market (HDE, HDEW). For more information, visit www.hheld.com/ir or call 415-495-6470.