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Press Release April 17, 2007

Fun Little Movies Now Streaming Hundreds of Videos on HandHeld Entertainment’s Network of User-Generated and Premium Content Web Sites

Popular clips from Fun Little Movies such as Space Guy, PuppetGreetings, and Damage Control are now available for live streaming

SAN FRANCISCO and HOLLYWOOD, Calif. – April 17, 2007 – HandHeld Entertainment™ (NASDAQ: ZVUE, ZVUEW) today announced it has expanded its existing agreement with Fun Little Movies (FLM), a leading provider and distributor of mobile entertainment and short comedy films.

As a result of the modified agreement, HandHeld can now stream hundreds of FLM’s short comedy videos on the HandHeld Entertainment network of Web sites, including ZVUE.com™, Putfile.com™, YourDailyMedia.com™, UnOriginal.co.uk™, FunMansion.com™ and Dorks.com™.

The expanded agreement provides HandHeld Entertainment Web properties users ad-supported, streaming access to hundreds of FLM comedy shorts, which are already available for purchase and playback on ZVUE™ personal media players, as well as other supported PMPs and mobile phones that use Windows Mobile 5.0. Videos produced by FLM have appeared on HBO, Showtime, MTV, Comedy Central, A&E, PBS, Fox and WarnerBros.com. FLM has also received many cinematic awards, including First Prize for Best Comedy at the World’s Smallest Film Festival for its “Love Bytes” series, and a finalist’s place for Best Short Film at the Cannes Film Festival.

“We’ve found that short format entertainment – such as music videos, short films, news and comedy shorts – is exactly the type of video content that our demographic is looking for,” said Jeff Oscodar, chief executive officer and president of HandHeld Entertainment. “By expanding this agreement we can now distribute Funny Little Movies to a much broader base by utilizing our network of Web sites to stream the content. It also presents additional opportunities for revenue since the content will all be supported by online ads, which allow us to offer the content free to millions of unique visitors each month.”

According to Frank Chindamo, president and chief creative officer of FLM, the library of content will be further optimized since its creators understand the difference between video that is best viewed on a personal computer or mobile device like the ZVUE, and video that is best viewed using a home theater system.

“We love the fact that you can see FLM videos on the ‘fun little’ ZVUE player,” Chindamo said. “And anything that adds more videos to our HandHeld Entertainment/Fun Little Movies mix is, well ... even more fun. So now we’re offering hundreds of our short comedy films on all of HandHeld’s Web sites for ad-supported viewing – funny little movies reaching millions in the HandHeld community all over the world. I ask you, ‘What could be more fun than that?’”

Notable free videos available as part of the expanded agreement include:

  • Ms. Rabble
  • ReTV
  • National Lampoon’s Dorm Daze
  • Space Guy
  • PuppetGreetings
  • Damage Control

HandHeld Entertainment’s network of Web properties in the United States and Europe offer more than 500,000 premium and free videos and other media available for purchase, download and/or streaming. These include music videos, anime features, television shows, movies, cartoons, independent films, documentaries, and news, entertainment and sports programs from companies ranging from Sony BMG to IMG Media, Showtime to Comedy Time 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. Customers can also select from millions of songs that can be played on a PMP through HandHeld Entertainment’s relationships with eMusic and Rhapsody (see http://www.zvue.com/html/music.php).

About Fun Little Movies

Fun Little Movies is a Los Angeles-based film and broadband production company specializing in short comedy films. Its work has played on HBO, Showtime, MTV, Comedy Central, CBS, PBS, A&E, Bravo, Fox, NationalLampoon.com and WarnerBros.com. The films have won 20 awards and honors including a finalists’ place for Best Live Action Short Film at the Cannes Film Festival, two American Cine’ Golden Eagles, and First Prize for Best Comedy at the CTIA World’s Smallest Film Festival for its Love Bytes series. Fun Little Movies is a pioneer in mobile entertainment content and distribution, and its success demonstrates an appetite for fresh comedy on mobile handsets. More information is available at: www.FunLittleMovies.com.

About HandHeld Entertainment, Inc.

HandHeld Entertainment (NASDAQ: ZVUE) is a global digital-media-to-go company. Its network of Web sites (Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com, UnOriginal.co.uk and ZVUE.com) now house more than 500,000 user-generated and premium videos in total – videos available for purchase or free viewing. Its ZVUE personal media players are mass-market priced and available for purchase online and currently in more than 2,200 Wal-Mart stores throughout the U.S. For more information, visit www.hheld.com.

MEDIA CONTACTS:

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), 801-523-3750 (fax), jbacon@politis.com.

INVESTOR CONTACT:

Scott Wilson, The Blueshirt Group, 415-489-2188, scott@blueshirtgroup.com

HandHeld Entertainment, ZVUE.com, Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com, UnOriginal.co.uk and ZVUE are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners.

 
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